Whether you run a large company or a small business, one of the ways to manage finances is to use credit cards. With these cards, you can track your business expenses as well as enjoy other benefits. It’s also a great way to cut down on expenses and save money. Generally, the use of these financial tools will offer you control over your business’s economy.
In this article, we’ll discuss in detail all the relevant information you need to know about credit cards for companies and businesses. We’ll reveal why you need to use credit cards and the benefits of using these tools for business. Furthermore, we’ll guide you on how to take advantage of these tools in business.
To ensure you’re using the right card, we’ll guide you on how to choose a plastic money for your business. You can visit https://www.kredittkortinfo.no/firmakort to see examples of credit cards. Finally, we’ll reveal the best credit cards for companies. There’s a lot to unpack, so let’s get started.
Why Your Company Needs to Use Credit Cards
The use of plastic money for financial transactions is something every business (small and big) needs to practice. There are different reasons why business owners need to use these tools. In this section, we’ll quickly take a look at these reasons:
Easy Financial Tracking
With these cards, tracking your company’s finances is easy. Reducing and possibly stopping the use of paper money in your organization can prevent unnecessary or undocumented spending. Every plastic money company provides detailed information about the card’s usage. This information can be used to track the company’s spending.
Ownership and Usage are Free
These days, owning plastic money is free. The same goes for using them. As a business, it’s advisable to choose a plastic money that has no annual fee. We’ll discuss this later in the article when we review the best credit cards for businesses.
Payment Postponement of Debts
Some people don’t know that if you have debts on your card, you can defer your payment for 50 days. Within this period, interest will not be charged on the current debts. Savvy entrepreneurs can take advantage of this grace period to make deals that can quickly return profit. The debt can then be cleared before interest begins to accrue.
Benefits of Using Credit Cards for Business
One culture that companies must imbibe is a savings culture. Everyone involved with finance in the organization must be committed to saving money. Here’s how plastic money can help organizations achieve this:
Discounts from Retailers
You can get significant discounts when you pay with your plastic money at certain retailers. This is common with many of the cards out there. Some of these cards allow users to enjoy bonus points also known as money back or cashback, on every purchase. As such, the company can save one to several tens of percent on each service and product paid for.
Travel Benefits
If the staff of your organization do a lot of official traveling, you can get discounts on travel fees. You can get 10 to 20 percent off flight fees. Some cards even offer discounts on rental cars and hotel stays. It’s also possible to secure free travel as well as cancellation insurance.
Cashback on Daily Purchases
You can get back about 4% on all your daily purchases with some plastic money. This is known as cashback. With this, you can get a percentage of your money back when you buy supplies or even lunch.
How to Take Advantage of Credit Cards in Business
We’ve talked about why you need plastic money and the benefits your organization stands to gain. In this section, we’ll discuss in detail how your business can take advantage of this. We’ll explore its application in both large companies and sole proprietorships.
Large Companies
You can take advantage of credit cards for travel purposes. If your staff go on official travel trips, we recommend getting them a plastic card that offers free travel as well as cancellation insurance. A fuel card can be procured for those who travel by road. Not only will you save money on travel expenses, but you’ll also get detailed information about the travel bill.
Since it’s a large company, it’s expected that you have lots of staff. In many such organizations, the daily expenses of the staff are covered by the company. Using plastic money to pay for these daily expenses allows you to get discounts and cashback.
Sole Proprietorships
Sole proprietorship businesses are usually small and have varying monthly incomes. Some months are great, while other months are not so much. This is all part of the entrepreneurial journey.
One easy way sole proprietors can take advantage of credit cards is the payment postponement or deferment allowance. When you have a debt on your card, you have a period of 50 days to repay before interest is charged.
This can mean a whole lot for a sole proprietor, especially if sales are low in a particular month. Therefore, the business owner can allocate money to other areas that will generate profit while postponing the debt repayment. You can also get discounts and cashback when you use the card to buy things.
How to Select a Credit Card for Your Business
By now, it’s certain you understand how beneficial using plastic money can be for your business. If you’ve decided to switch to plastic money for your purchases, what’s left is deciding which card to use. There are so many credit cards out there that choosing can be very challenging. Lucky for you, we’ve got you covered.
When it comes to choosing a plastic card for your business transactions, the first thing you need to consider is your organization’s operating expenses. In other words, you need to determine where the company’s money goes. What do you spend money on? Knowing this will help you choose a credit card that meets your spending needs.
The next thing to do is find out which credit cards offer discounts on your organization’s operating expenses. So, if your company spends a lot on travel tickets or insurance, you need to find credit cards that offer discounts and/or cashback on these expenses. When you combine both steps, you should be able to determine the type of credit card your company needs.
Best Credit Cards for Companies
Having to sort through different credit cards can be time-consuming, even if you’ve determined your operating expenses, as we advised. To make things easy for you, we’ve compiled information about some of the best credit cards for companies. You can go through each one to find the one that suits your needs.
Re:member Mastercard Black
Regarded as one of the best credit cards in the country, users of the Re:member Mastercard Black can enjoy as much as a 25% discount on retail purchases from more than 200 online stores. The categories the discount covers include travel, car and car rental, home and house, sports, opticians, and electronics. You get to enjoy free travel as well as cancellation insurance. This covers you and three other people you’re traveling with.
If you make financial transactions with travel-related organizations such as Qatar Airways, Emirates, Expedia, Avis, and Hotels.com, you get a huge discount from these organizations. The card’s effective interest rate is 29.06%, but you have 45 days before interest begins to accrue. The maximum credit limit is NOK 150,000. There is no annual fee attached to this financial tool.
Bank Norwegian VISA
If you travel with Norwegian, you get a 5% discount (cash points), which is why it’s popular with frequent fliers. With every other purchase, you receive 0.5% cash points, and these cash points can be exchanged for airline tickets. You are also given travel insurance that covers you, your partner or spouse, and children less than 21 years old. When you’re abroad, there is no fee attached to cash withdrawals.
The card’s effective interest rate is 24.40%, but you have 45 days before interest begins to accrue. The maximum credit limit is NOK 150,000. There is no annual fee attached to this financial tool.
Morrow Bank Credit Card
With the Morrow Bank Credit Card, you can save as much as NOK 2,000 annually via the cashback bonus. You get a cashback of 2% on your online purchases and 1% on other purchases. If you buy from Blush.no or Komplett.no, you can get as much as 4% cashback.
Travelers can also enjoy free travel insurance. This covers three other people in your party. You won’t be charged interest for as long as 9 months when you pay NOK 249.
The card’s effective interest rate is 24.20%, but you have 50 days before interest begins to accrue. The maximum credit limit is NOK 100,000. There is no annual fee attached to this financial tool.
Conclusion
Credit cards for companies offer businesses a lot of benefits and advantages. This includes free travel insurance, discounts, cashback, etc. In the article above, we’ve discussed what you need to know about these cards and how to choose the right one for your organization.
Source: Explore
