4 reasons to use a business credit card

By UK CreditCards.com

Does your company use business credit cards?


Companies across the UK are taking advantage of business credit cards to manage their cash flow and their company expenses. Whilst some firms see corporate credit cards as the path to racking up unnecessary debt, others say that corporate credit cards are an invaluable financial management tool for their company.

Here are four benefits to using a business credit card:

1. You can add lots of additional cardholders
One of the main advantages of business credit cards is that you can add a large number of additional cardholders to your account. You can then issue a business credit card to each of your sales team, for example, so that they can pay for fuel or hotels using the company card.

2. Each card can have its own credit limit
Rather than set a credit limit for all of your corporate credit cards, you can assign varying credit limits to each individual cardholder. For example, you may want the Managing Director of the firm to have a higher credit limit than a junior member of your sales team.

3. The cards prevent your staff from using their own money for expenses
By allowing your staff to use business credit cards to pay for expenses, you can also streamline your payroll process. Instead of having an employee retain and collect receipts and then submit an expenses claim that another employee must process, you can simply issue a business credit card to the employee. The employee no longer has to pay for business expenses out of pocket, and the labour intensive expenses reimbursement process is eliminated.

4. You can benefit from credit card rewards schemes
Many business credit cards are affiliated with a ‘rewards' scheme. This means that you can rack up points towards vouchers, Air Miles or other benefits every time that an employee uses their corporate card.

See related: Small firm bosses using personal credit cards; New rules impact credit card lenders

Published: 1 March 2011