Benay Informer 08/10/2022
Make the most of your business credit card
As a business owner, creating success and growing profits are always top of mind. Many decisions must be made regarding operations, suppliers, vendors, marketing, team personnel, etc. From experience, we all know the result that one single decision can have on your business. The ripple effect is real!
To ensure positive financial results, take a moment to consider choosing the right payment tools that support and reward you for “good behavior.” The right credit card can add something extra to your business with little to no extra effort. There are benefits to cash rewards in some instances, but if you can build your credit, earn rewards, add to airline or travel points, feel protected from fraud, and more while keeping your vendors happy, why not use a credit card?
For these three reasons (and many more!), our expert bookkeepers agree that using the right credit card to keep your business moving forward is a good idea.
Build your credit by always paying on time. Like with your personal finances, your business has a credit history and score that is worth the upkeep. A higher credit score will be preferred when you apply for a loan, a rental agreement, or to work with a new vendor. The better your score, the lower your interest and insurance rates, and the better deals you will receive. Paying your credit card(s) off each month significantly affects your score—up to 35% of your score is based on your payment history—and will help you avoid gnarly late fees. Missing or late payments will jeopardize your account standing and financial viability. Paying on time will keep you out of collection with unnecessary late fees and charges. Trust us; no one wants to be on that list!
Benefit by using points wisely, such as cashback & rewards programs. Wondering how you will pay for employee perks or provide incentives that fit your budget? Consider signing up for a credit card that offers rewards that you can pass along to your employees. This way everyone benefits without adding to your list of expenses. Success in this area may mean having a few cards used only for a specific purchase to reap the most rewards. Keep the number of accounts you hold small to stay easily organized. These cards are supposed to make work life better, not add to your stress level! Many programs are available with various rewards ranging from goods, services, bonus service levels, cashback checks, travel incentives, and more.
Speaking of travel, many cards offer an automatic level of insurance when you use them to book flights, hotels, and rentals. Depending on the program you are enrolled in, you can be protected from delays or fraudulent charges while in a foreign country. Also, this means you don’t have to pay that annoying extra insurance fee airlines and rental cars love to charge. Some cards offer extra incentives for fueling up your vehicles, buying groceries, and other expenditures. With the price of gas these days, any additional savings you can earn there are welcomed!
As you can see, the benefits of using a credit card wisely will help you continue to move your business in the right direction. We have found an astounding number of available business credit card options to choose from on the web. . Like apps on your phone, there is a card for just about every reward you can think of! If you are overwhelmed with making a choice based on the details of each offering, the experts at Benay can help you make the best decision for your business and your goals.
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