A business credit card is a powerful cash management tool that can help businesses minimize borrowing costs, protect their finances, and manage expenses more efficiently. But some midsize businesses are hesitant, often because they are simply unaware of the many operational benefits that come with business credit cards. And while many banks offer corporate and business credit cards with the usual teaser rates and rewards, the real value to consider in a business credit card lies in extra features and benefits that are assets to your business's bottom line.
Four overlooked business credit card benefits
Business owners are strapped for time and spend a lot of it thinking about the financial details that keep the business running smoothly. And when questions come up, especially about finances, the answer often needs to be “now.” Business credit cards can take away some of those worrisome details by offering more control over cash flow and day-to-day expenses and streamlining working capital, but that’s just the beginning. Here are four often-overlooked benefits to consider when selecting the right business card:
#1 Real-time visibility over business expenses
One often overlooked credit card feature is account management tools. The right card grants transparency into where expenses are going along with the ability to integrate third-party travel and expense reporting and reimbursement solutions.
#2 Flexible control over employee spending
When cards are issued to employees, there are tools and parameters to control where the employee is using the card and what they are purchasing. According to Penny Foust, CTP who leads the Treasury Management team for Signature, a division of Esquire Bank, “If you have the right card, you should be able to adjust the spending limits as well as the categories where a card can be used. For instance, allow purchases for fuel, office supplies, or hotels, but restrict purchases in other categories like casinos.”
#3 An added level of security online
Employee credit cards can also offer a level of fraud protection that check-writing just can’t provide and many offer zero-liability fraud protection for unauthorized purchases. But beyond that, some provide virtual credit cards. Virtual credit cards allow companies to make online payments by generating a virtual, single-use account number that protects the original account information in the event of a data breach or hack.
#4 Personal service from a trusted advisor
When companies and cardholders need help with their business credit cards, it is critical to have a quick response and not get stuck waiting on hold with an 800 number for help.
Penny gives an example of a Chicago attorney who was stuck at the airport on a Friday afternoon in need of help with a business credit card issue in minutes, not days or weeks. His corporate card account, which was jointly used by 10 other employees, was maxed out.
“Normally the decision to raise a credit limit could take weeks, and involve phone calls to an outsourced call center,” relates Penny. “Because he held a Signature card, he called our bank, and we were able to immediately increase his limit. He was able to board the plane, get to his meeting and get the deal done.”
Explore all the perks of plastic for your business
Finding the right corporate credit card is an important decision. It can help you streamline payment systems, reduce processing costs, and improve overall efficiencies within your business. You’re also able to minimize risk to personal credit, freeing your personal credit from business obligations.
Signature focuses on serving the needs of privately-owned businesses and their owners. Learn more on our website, or contact Penny Foust at 773-499-7157.
