Whether you have just started as an entrepreneur or have been running your business for many years, opting for a business credit card like founderscard can be of tremendous help. According to statistics from Fundera, around 67% of business owners use a business credit card.
Using a business credit card effectively can be the difference between the business’ success and failure as it supplies the necessary cash required to maintain business operations for the time period between buying the inventory and getting paid by the customer.
A business credit card for startups and SMEs helps keep business and personal expenses separate, makes it easy to pay the vendors, track spending and manage cash flow.
Here are some of the ways you can use a business credit card effectively to manage your business finances:
Build Business Credit History
One of the most underestimated benefits of getting a business credit card is that it can help you build a good credit score for your business. This can prove to be greatly helpful eventually, when you wish to secure a short or long-term business loan.
Not only is the business credit card helpful for the business, but you also protect your personal credit score by separating business and personal spending.
Planning Cash Flows
Healthy cash flow is a crucial part of a business’ success. Even if the business is making great sales and has a good profit margin, most small businesses still must bridge the finance gap between buying the stocks and getting the payment.
If you get an invoice for your purchases which is due in 30 days, but you know you are getting payment from the clients after, say 40 days, you can pay with your business credit card. By this, the gap between purchase and payment increases, giving you some time to honor the invoice.
Organize Business Expenses
By using only the business credit card for all the organizational expenses, you will be able to keep track of the business spends in a better way. If you would have used your personal credit card for it, you would be left looking for loose receipts or making guesses.
Moreover, business credit card companies will send you a summary of expenses either annually or for the required period. With this you can compare your spending from one year or set period to the other.
founderscard is India’s first VISA Infinite Business Credit Card for small and medium enterprises and offers various benefits like spend rewards, Lower foreign currency markup fee on international transactions, special access to an SME Bazaar, and interest-free credit period that helps you to scale your business to greater heights.