As an entrepreneur or a business owner, your primary task is to keep your cash flow stable, while meeting all the financial needs of your business. For small to medium-sized businesses, accounts payable and receivables are tightly managed. That means, companies will have outstanding bills or invoices to pay even before they generate revenues. Such a scenario makes it difficult for businesses to manage cash flow. This is why smart business owners rely on corporate credit cards to access interest-free credit options. Picking the best corporate credit card can give businesses flexibility in ensuring streamlined financial operations.
Surprisingly, several business owners use their private credit cards to take care of business experiences. Although it is a convenient option, you might lose out on diverse benefits for your business if you choose not to pick the best corporate credit card. Some of the benefits of a business credit card are listed below.
- Corporate credit cards help you reduce costs by providing exclusive corporate discounts on some categories of business expenses like travel rewards.
- You can streamline your business spending by using one centralized card to take care of all your transactions.
- Corporate credit cards give you real-time visibility and insights into your spending behavior for better expense management.
- A corporate credit card keeps your personal spending separate from business expenses. It will ease your taxation process and other reporting needs.
- Using a corporate credit card will help in building a healthy credit score for your business, which helps in accessing cheaper credit lines when required.
Choosing the best corporate credit card
The explosion of startups in India in recent years has every financial institution offering attractive credit card options to small businesses. However, they come with terms and benefits unique to them. Picking the best corporate credit card from the galore of options can be a daunting task. We have put together some guidelines to help you make the right choice.
Refer to your personal credit score
As a business owner, banks will evaluate your personal credit score to verify your eligibility for a business credit card. You can check your creditworthiness from any of the number of free websites, which also give a detailed report. Once you pull up your credit report, you can understand the best corporate credit card for your business.
Assess your business expenditure
Go through your financial records and past spending trends to get a comprehensive understanding of your cash flow. You can utilize the data for the last few months to generate insights like the highest spend category and department. Based on this data, you can pick the best credit card that aligns with your business expenses and also gives you maximum rewards or discounts.
Check necessary fees & charges
Business credit cards give you interest-free credit options albeit for a short period. However, if you fail to clear the outstanding due within the deadline, the card provider can levy hefty charges. In addition to this, some cards may have annual maintenance fees. Therefore, before you select the best corporate credit card evaluate all the options for any hidden costs and fees.
Compare cards on APR
APR or Annual Percentage Rate refers to the interest rate that applies to you in case you do not clear your credit card dues. While this is a standard charge across the board, you can identify the one with the lowest APR. Some business owners do not factor in APR because they feel confident of clearing the dues well within the deadline. But to be prepared for any eventuality, choose the best corporate credit card in terms of APR.
Evaluate rewards & exclusive discounts
Corporate discounts, rewards, and special perks that business credit cards offer can make a huge difference in optimizing your spending. If your team needs to travel for work, you must select a card that provides frequent flyer miles, cashback on hotel bookings, and so on. The best corporate credit card can become a potent tool for saving.
Unlock a treasure of expense benefits with founderscard
For small businesses, a corporate credit card can be a game-changing move due to the competitive edge that it provides. From special rewards to access to on-demand funds, a business card can be the founder’s best friend. One of the best corporate credit cards for small and medium-sized companies is founderscard. It is a tailor-made financial solution for founders to facilitate an interest-free credit line for up to 51 days. Additionally, it gives users access to an exclusive business community of corporate leaders.
You can learn more about founderscard here.