Be A Smart Business Credit Card Applicant
Even as the world economy feels the crunch lately, credit card companies are still clamouring for business as income from credit cards are probably one of the highest earners. The marketing becomes more aggresive and more perks are thrown in so that people would be more prepared to apply for one. Whilst personal credit cards are the norm, credit card companies have also taken the road to capture the business credit card sector. With such a lucrative market available, it is not surprising if the credit card agent tells you that he will come over to your office at your convenience so that you can fill up the business credit card applications. Even so, businessmen should take their time to source out the right type of card to use depending on the needs of the company. Some of the more common types of rewards programmes and features offered are as follows:-
Rewards Points and/or Miles Rewards
The rewards points incentive or travel miles reward programmes are probably in existent in almost all business credit card packages. With an eye to motivate the business man to spend more, points or miles are given for the amount spent on the credit card. The points are then redeemable against a catalogue of gifts or travel deals. If you know that your business requires you to spend considerably, then choose the rewards programme which gives you the best value for the points earned.
Cash Back
With cash back cards, the businessman is offered a percentage of each purchase back in cash. However, it is unlikely that you can actually withdraw cash earned back. Rather, the cash earned is used to offset selected purchases or used as rebates. Do note however that the interest rates on these cash back cards can be higher than ordinary cards and some may come with an annual fee. It is always advised that you read the fine print to determine the percentage for the cash back rewards before you decide whether it is worthwhile to submit that business credit card application.
Discounts
Credit card companies usually have business tie-ups with other merchants so that these merchants will offer discounts to holders of their business credit cards. Hotels, car rental companies, spas and food outlets are some of the most common merchants which offer discounts for privileged business credit card holders. If you are required to travel frequently or entertain clients and these merchants are the usual places you frequent, it may be advantageous to take full use of this facility.
Pre-set Employee Spending Limits and Detailed Reports
Worried that your employee who is holding a business credit card might overspend? Not anymore. Just determine a pre-set spending limit and you need not worry further. It goes further than that. You can keep tab on your employee’s spending by having access to the monthly statements on each business credit card on the account. Always verify the statement with the receipts for expenses incurred. This would also help the company to track their expenses and make a more accurate budget during their financial planning.
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