Credit cards are the key to a healthy business. Apart from being good for emergencies and fraud protection, they are undoubtedly a convenient source of capital for small business financing and vital in building up a good credit score.
Read on to find out the host of other benefits that will change your perception about credit cards.
Credit cards make it simpler to buy things as it saves you the hassle of handling huge amounts of cash. Buying now, paying later and using a credit card for airlines and hotels that donât accept cash, surely makes life convenient.
Fraud and theft protection is non-existent for cash. However, fortunately, the same is not true in case of loss of a credit card. Also, a dispute charge on your credit card is mostly not charged until the dispute is resolved. In other cases, the money is often lost.
A loan against a credit card is the best option especially, for speedysmall business financing. Surprising as it may sound, the credit score that your credit cards help build with timely payments, actually encourages a bank to disburse a personal or business loans quickly, without any documentation and at comparatively lower rates of interest.
If you are using cash or a debit card, it is easy for your personal and business expenses to get tangled up. Opening a business credit card allows you to stop using personal credit cards for business transactions, thereby clearly defining the structure to operate your funds.
Paying off small amounts you charge on your credit card is a great way to create a credit history. This good credit report can in turn help you get a personal and business loan at an excellent rate of interest.
Once you swipe your credit card to make a purchase, the company can vouch for the money you have spent in case of a loss, damage or robbery. Using credit cards to make huge purchases not only offers insurance but also secures your interests as a consumer of business loans.
Just using a credit card helps you earn free money. Many credit cards offer rewards, including cash back, airline miles, store vouchers, discounts, rebates, gift cards and many more. As an added bonus, rewards earned on employee-issued credit cards all go toward the business.
Credit cards are the plastic money you can carry everywhere for the cheapest and most convenient transactions. Such cashless transactions are not only travel efficient and safe but protected too.
With quick and hassle-free small business financing becoming the need of the hour, many business owners are turning to credit cards for basic types of cash transactions. Your finance is one of the most important areas of your life, and your credit card makes sure that you get the most out of it.
Originally published on SME Times India