You don’t have to run a small business to know how quickly work, admin and invoices can stack up. People working for small businesses may have a distinct job title, but in reality they can find themselves assuming an array of roles depending on what needs to be ticked off the to-do list that day.
One aspect that can be particularly difficult and time consuming to manage is the financial side of a company. From pay rises to pricing plans, there is plenty to deal with on the finance front, many of which affect employees as well as small business owners.
But did you know that all the hassle could be completely eradicated with a business credit card? When it comes to credit cards, it’s easy to think debt – but in reality they’re essential financial tools. Here is a brief overview of how credit cards can be used by the entire team to manage a small business effectively:
Business owners
Business credit cards are invaluable for small business owners, so if you’re aware your boss is struggling and you’re heavily involved in the financial side of the business, it may be worth highlighting these as an option. Offering a generous period of interest free credit, business cards can be used to improve cash flow. As long as you make full repayments, you can borrow the money you need when you need it, without having to pay any interest.
You might know what your personal credit score is, but have you ever considered that of your business? Securing funding is often vital for small businesses and for that it will need a good credit score. A business credit card is the ideal way to start building a decent score and will make getting approved for a loan or other finance much easier in the future.
Employees
Being given the company credit card regardless of the occasion is not only a symbol of trust, but also often proves a more efficient way to manage a company’s finances. If you are responsible for business purchases or travel frequently for business, it can be more convenient to take the company credit card rather than becoming embroiled in expense reports, reimbursements and the tiresome task of separating your personal expenditure from business spend on your return.
Ramping up spending on a business credit card is also useful to the company because it incurs rewards or cash back. When a card is used wisely, employees could earn their company hundreds of dollars a year through business purchases and travel spending. For example, the American Express Business Platinum Card offers 1.25 Membership Rewards points for every $1 spent. These points can then be exchanged for gifts and certificates for business or personal use.
