There are lots of benefits entrepreneurs can gain from using business credit cards that offer rewards.
In fact, it can help small business owners get extras to boost their business finance.
The rewards programs offered for these types of credit cards help take the bite out of the extra costs incurred when businesses use credit cards to pay for purchases instead of paying cash.
Though having business credit cards may be good for your business, there are some essential facts you should know about credit cards finance.
The most important thing is to understand how credit cards work and what kind of benefits you business might gain from using it.
Benefits of business credit card that offers rewards
You should also be concerned about managing your finance. See our article on Top 5 Best Ways To Manage Your Credit Cards Finance. Many credit cards offer reward programs that give the cardholder points for making purchases. You might earn just one point for every dollar you spend, or it might be more.
These points can be exchanged for cash or merchandise once you accumulate enough points.
Other credit card providers offer a cash back percentage and it’s usually one to two per cent.
This amount is credited back to your account monthly or annually.
Using a credit card that offers a cash back reward is almost like buying everything on sale.
#1). Custom credit card with business name and logo
Most of the benefits of using a business card that offers rewards are a little less tangible. For example, you may be able to get a custom credit card that has your business name and logo on it.
The great thing about this is that every time you hand over your credit card to make a purchase, the cashier is exposed to your business information. You never know when that exposure might lead to a sale.
#2). Gift rewards for customers or brand advocates
Even if you are not excited about the rewards your business credit card offers, you can still benefit from them by passing them along to your best clients as gifts.
This is another way to improve brand loyalty and gain more indispensable advocates. Your customers will be happy you thought of them, and will become more loyal to your business as a result.
#3). Gift rewards for employees or staff members
Another benefit of using a business credit card is that you can often get cards for employees as well. Many companies allow you to give employees their own credit cards on your account and set a spending limit for each card.
This allows you to control the amount of access each person has to spend money on your account, so the receptionist who occasionally runs to the store for do-nuts for the break room can have a smaller spending limit than the sales representative who travels all over the country.
#4). Travel benefits
Many business credit cards also offer travel benefits such as accident insurance and lost baggage coverage. In addition, you may be able to get a card that offers concierge service. This service is provided by calling a number on the back of your card.
You will basically have a personal assistant at your beck and call. The concierge can make reservations, order flowers on your behalf, or even give you directions while you drive.