Most of us rarely think about saving business money
with
business credit cards. They are not just a convenience
to pay for business expenses when you are short on cash but
also come with lots of saving opportunities. No doubt credit
cards make it easy to overspend than actual financial needs
but when used wisely, they can save lots of business bucks
that can be spent on other productive areas to make your
business grow. However, one should choose the best credit
card for the individual needs and requirements of your
business.
Below are some solid examples of how a
business credit card can save you money while you are using
it to finance business purchases and payments.
Sign-up
Bonuses
A credit card could be a great saving tool.
Most companies offer sign-up bonuses with new cards. This
means you may need to reach a particular spending limit in a
given period of time to claim your sign-up bonus. Such
bonuses can range from cashback to free reward points and
more. When you use your card enough to qualify for the
bonus, you are eligible to claim and use that bonus in any
way you want. In this way, you can take your business
savings to a whole new level.
Free Rewards
Points
When you swipe your business card for material
purchases or to make payments, you can earn free reward
points that are redeemable for a variety of things. For
instance, when you swipe a business credit card on
particular retailers and POSs, you start earning free
rewards that you can redeem according to the company’s
terms and conditions. In this way, you are saving/earning
more money while using a card for day-to-day business
purchases or payments. To get the most out of free points,
ensure to read the fine print carefully and understand where
you can earn free points and how to redeem them before they
expire.
Travel perks
As most businesses rely on
travel, having a good travel credit card can make travel
cheaper and more convenient. When you book an air ticket,
taxi, or hotel using your credit card, your card starts
earning free travel rewards for you. And then you can redeem
those free travel rewards on travel-related expenses like
car rental, accommodation, air tickets, etc. Not only this,
travel cards also help business owners enjoy free access to
airport lounges. A travel credit card can also come with no
foreign transaction fee. This means you can save a lot of
bucks by paying no fees on transactions when you use your
card in another country. Free checked bags are another great
travel perk that most credit cards offer. You should shop
around and compare to find the
best credit card with enticing traveling perks and
benefits.
Price and Purchase Protection
Many
credit cards offer price or purchase protection to protect
your hard-earned business money. Price protection means if
you swipe your card for a product or service and then you
find it for a relatively lower price, the company will pay
you the difference to help you find the best rates. The
price protection offer is valid for a given timeframe once a
purchase is made. Similarly, purchase protection is a
little-known credit card perk but can protect your money in
the case ordered products are damaged or of low quality. If
you find the delivered items broken or damaged, the credit
card company will offer you a replacement or reimbursement
for the products in full.
0% Introductory Rates on
Balance Transfers
As most credit cards come with
high-interest rates, paying off a balance of a high-interest
business credit card can cost you much. This is where lower
or no interest introductory rates can work as a great
financing solution for you. Balance transfer credit cards
usually offer a 0% introductory rate for a particular period
of time (up to 21 months). And you can use these cards to
transfer the balance of your old card so you can get enough
time to pay down your credit card debt even without paying a
single penny towards interest. Hence, you should pay off
your balance before the 0% introductory rate period ends.
Otherwise, you might be paying a higher interest rate than
your old card. Reading the terms and conditions is a must to
avail the benefits of a 0% interest period.
Final
Thoughts
Business credit cards can help you finance
business purchases and streamline cash flow when used
wisely. Using a little percentage of the available credit
limit and making constant monthly payments on time are the
key aspects of using a credit card in the best way possible.
As a result, you can save money, build credit, and finance
business purchases
effectively.
