Small business credit cards have become one of the most popular financial tools used by small business owners and entrepreneurs to meet short-term financial requirements. Such cards provide businesspersons the access to immediate funds which often becomes vital for smooth operations.
Proper usage of a business credit card can be significantly beneficial for small companies. Cutting costs and increasing revenue are two primary goals of such firms. And, these credit cards can help them specifically with the same.
Financial institutions are also adding new features to credit cards which make them suitable for such small business owners.
Some of the current trends seen with small business cards:
1: Emergency loan against the credit card
Using a credit card is quite similar to availing an unsecured loan. However, the expenses that you make with a card are fixed. You can’t exercise the full freedom of your credit card limit, unlike the funds from a loan.
Financial companies have combined both of these to offer more convenience to business owners. Now, you can convert the credit limit of your card into an emergency loan.
Small businesses utilise such loans for multiple purposes like office renovation, purchasing new equipment, paying suppliers, consolidating debt, etc.
Plus, such loans also don’t attract interest. Credit cards like the Bajaj Finserv RBL Bank SuperCard offer you an interest-free emergency personal loan for up to 90 days.
2: Interest-free ATM cash withdrawals
Another trend in the usage of business credit cards is for ATM cash withdrawals. Availing a loan might not be the best solution to resolve a cash shortage even though leading financial organisations can sanction the funds within a day.
Hence, business owners prefer to withdraw cash from ATMs using the credit card when in need of emergency funds. Some business cards don’t charge any interest when you do so.
The Bajaj Finserv RBL Bank SuperCard is one of them. You don’t have to pay any interest provided you repay the funds withdrawn within 50 days.
3: Easy to meet travel expenses
Business credit cards offer high rewards on air travel.
Small business owners utilise these cards to book flight tickets and hotels. They help earn travel miles when purchasing air tickets of a particular airline. You can redeem these miles to receive discounts on future ticket purchases.
Some business credit cards are also partnered with travel companies. Purchasing flight tickets or booking hotels from the respective company’s website can give you higher reward points and discounts. The points you earn are redeemable on that website. There are such cards which even provide complimentary airport lounge accesses as well.
4: Fuel surcharge
Travelling not only by air but also with a vehicle is a mass requirement for a business owner. Hence, they end up spending a substantial amount of their revenue on fuel. This expense is also significant in the case of transport companies operating a large fleet.
In both these situations, individuals apply for a credit card for business to reap the benefits available from fuel purchases. Some cards deliver high reward points against such transactions. These points are then redeemable to purchase fuel for free.
Thus, small businesses can cut expenses on fuel considerably every month with these credit cards.
5: Paying utility bills
Another trend in business card usage is paying utility bills. Electricity, internet, telephone, etc. are some payments that owners have to pay regularly. Performing such transactions with a business credit card is more lucrative than doing it via cash or debit card.
Credit cards provide cashback on every utility bill payment. This cashback is reimbursed to your as a discount on your monthly statement.
6: Purchasing products for daily office needs
Other than all of the above, entrepreneurs also use their business credit cards to purchase items required daily. These cards provide reward points against online and offline transactions.
Such reward points are redeemable against gift vouchers valid on pre-specified brands and retailers, cashback, travel miles, etc.
There is massive disagreement when it comes to the future of business credit cards. It all depends on how financial institutions package their products with features and benefits.
Apply for a credit card which will help you meet such short-term requirements for your business. Manage it responsibly to overcome such immediate monetary challenges and help your business grow sustain-ably over time.