As the saying goes, you’ve got to spend money to make money. Using a business credit card can help with tracking spending and managing expenses. Businesses that use the right card can also earn rewards and cashback. You’re strategic about where you spend your money, so why not be strategic about how?
The choices you make about your business card should depend on how many people plan to use it and why you want them to use it.
Here are a few pointers that will help you pick the right corporate card for all of your card-swiping needs.
The questions you should be asking
When you begin looking for a corporate card, you should ask a few questions. The first is whether the company offers flexible business credit lines in addition to unlimited virtual cards, both benefits offered through companies like Divvy. Flexible business credit is a must with a million balls to juggle as a business owner. Virtual card offerings are of similar importance, given that these single-use alternatives to traditional corporate cards can simplify your expense tracking and keep your financial information safe in one fell swoop.
It’s also important to ask about setting up spending limits, activation and deactivation rules, and security measures in place for each card. Finally, you should ask how to control expenses through the corporate card.
Learn about how business cards differ from personal credit cards
Most corporate credit cards work differently than personal cards. All cards help businesses or individuals pay for items and services, but corporate cards offer different levels of protection. Business owners are responsible for paying for all charges, even if employee purchases using the card.
Corporate cards do not provide the same protections that individual cards offer, especially with unauthorized transactions. Credit card companies expect corporate users to pay their balances on time and in full.
Many credit card companies let businesses give cards to employees so that accounting offices can track spending in different departments.
Consider how your business will use a corporate card
Most top corporate card companies offer specials for traveling, restaurant expenses, and fuel costs. If you plan to use the card for any specific purposes, you will benefit from choosing a card that offers rewards on fuel, traveling, or restaurant expenses. Very few provide rewards for all purchases.
Some cards offer rewards for all purchases, and however, rewards are usually around 1% or 2%. You might also want to consider a card that gives you separate spending reports for each card being used in your company.
Snag all the benefits you can
Corporate credit cards can streamline expenses and help businesses earn rewards. There’s no point in signing up for a card if you don’t receive anything in return. At a minimum, look for a card that offers special financing, extended warranties, and other benefits.
A top benefit is zero-percent financing. Choose a card that offers this financing benefit for as long as possible. Your balance will be interest-free during this time, so you save money.
It is also helpful to find a card with purchase protection, especially for computers, furniture, travel, and other costly goods. While shopping for cards, look for cards that don’t charge annual fees, as some charge hundreds each year, and these fees negate the benefits.
Wrap up
If you need a business credit card, take time to shop around for the best deals. The card you choose should augment your business’s spending, not impede it.
