Managing expenses in a small business can get complicated. Especially in situations where cash is running low. But being short on cash doesn’t have to spell doom, provided a company has access to credit. While there are many different options on how to finance a company through loans, applying for a business credit might be the best option, depending on your business model. Finance Expert Madison Blancaflor advises that “Small businesses need access to credit, and specialized business rewards credit cards can be a great way to fund purchases, manage spending and help save money and/or earn rewards over time… If your business cycle is a few months between incurring expenses and receiving payment from a customer, revolving credit may be a more cost-effective solution.” Here are a few good benefits of using business credit cards:
1. Online Account-Management:
Applying for credit cards is so convenient that it’s possible to file an application entirely on the internet. Payments can be made online, and everything about managing the line of credit can happen online. This saves time and allows business owners to focus on growing their companies.
2. Exclusive Vendor Discounts:
Depending on the financial institution which issues the credit card, your company could have access to special rebates tied into the card. Certain vendors may be willing to offer discounts, or the bank itself could have partnership programs which save money for your business through the card.
3. Paperless Records:
One of the most convenient aspects of using credit cards is online banking statements. Digital banking statements help keep track of line-item transactions with ease. They enhance the bookkeeping process and make it easier to corroborate spending activities. Not to mention that going paperless is good for the environment.
4. Rewards Programs:
Most business credit cards come with incentives which encourage cardholders to swipe frequently. If you can figure out a way to funnel spending through the card without incurring a bloated balance, rewards points can actually end up reducing expenses dramatically.
Financing your business through a credit card does involve some risks. But as long as your company can generate sustainable revenues, it’s possible to successfully reduce these risks. Business credit cards enhance the professionalism of a company. Not only do they help organize spending, but they also establish credit history which boosts a company’s reputation with banks. The next time you contemplate borrowing to help your business, consider tapping into a revolving line of credit before seeking out lump-sum loans. If you like what you just read from our blog, you’ll love the various informative courses, workshops and events listed on our websites and social media. Whether you’re interested in personal development, or overall improvement of your business, give us a call at 1 (888) 823-7757 to find out how The RISE Academy can help you break past your daily struggles and start soaring in success.