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Sunday, December 4, 2022

Find a Suitable Credit Card for Your Business – Here’s How

Business expenses today are easily and securely handled using company credit cards. Organizations that have to manage business purchases, like those for office supplies, furniture, and computer software or hardware, can benefit greatly from using the business or purchasing credit cards. They help regulate travel and other costs that employees incur while working for their employer.

You can improve your business’ cash flow and effectively manage your working capital by switching to card payments from cheque payments. Further, you stand to earn cash back on your purchases and payments via rebates or rewards.

Your choice of a business card will depend on the advantages it offers. With most financial institutions, particularly banks offering business and corporate credit cards, you need to go for credit cards comparison to find the one most beneficial to your business. Most business owners and corporate customers look for easy access to a revolving line of credit for purchases and cash withdrawals with a set credit limit, which business credit cards can offer.

A company credit card is an easy way to enhance your company’s purchasing power and obtain financing for urgent needs. Such a card is designed as a better and more desirable alternative to a standard line of credit. It helps business owners to manage their everyday expenses effectively through several value-added benefits. 

These corporate cards would be the perfect solution to help the SME sector address the difficulties of managing cash flow by using spending flexibility as a practical financing option. You need to look for a few essential aspects when choosing a credit card for your small or medium-based business.

Whether it can enhance the payable process

A business credit card helps improve a company’s payables process through account management tools. The best credit cards offer simple card management that allows program managers and account managers to adjust controls and gain access to spending data on demand. These cards seamlessly integrate into a company’s current financial accounting system.

For instance, it is possible to identify unusual payments made to a new vendor. You can plan for upcoming budgeting cycles and understand the spending patterns by identifying payables made outside of regular business hours or normal business regions.

  • Does it improve the cash flow?

With a purchase credit card, you can avail of a line of credit that can be used to purchase anything from office supplies to raw materials and merchandise your business needs. You get charge-free credit on these cards that help you pay for the purchases, without using the cash on hand or working capital. 

You are required to spend money in the business to generate revenue, which can be made with a credit card easily. You can improve cash flow with the line of credit these corporate cards offer to pay for purchases to complete business orders. For instance, RHB Corporate Cards offer no interest credit period of 50 days from the date of the purchase.

  • Is there any annual fee?

Some business credit cards offer an annual fee waiver for a year.

  • Do you find cashback offers?

Unlimited cash-back offers may be beneficial for a company that normally works with a specific supplier or vendor. When used to pay for office supplies or overseas and local business retail spends, business credit cards may offer unlimited cash back, for these corporate expenses can quickly add up and account for a large portion of a company’s annual budget.

For instance, RHB extends unlimited cash back on some expenses like business retail spending, which is 1% and 0.5% on purchases internationally and locally respectively. Nevertheless, cash back does not cover FPX transactions, cash advances, charity, and petrol expenses.

  • Does it allow you to regulate expenses?

Controlling business spending is crucial for SME businesses with tight profit margins. Developing your business calls for spending much time, which you cannot spend on managing bills. There are company credit cards or purchase credit cards that can help SMEs manage their expenses more effectively while saving time on administration, as well as costs.

Some companies may wish to use various cards for different sorts of spending. For example, your company may choose to have an RHB Purchasing Card to purchase raw materials, furniture, or equipment. It helps manage cash flow with a charge-free period but pays for travel expenses with another card that offers air miles or cash back. 

It may make expense tracking more difficult. You can easily track and control your expenses on the RHB Reflex app by generating the account statements of multiple cards. 

To conclude, credit cards comparison is an ideal way to find a business credit card that enables you to have enough flexibility and cash to purchase raw materials or stock to generate revenue for the business. The credit period you enjoy helps you improve your cash flow and have time to grow your business.

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