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Business credit cards

Many businesses find that a corporate credit card can be beneficial for many reasons. The following information may help you decide which credit card to choose for your business.

Protection on purchases

A credit card provides some protection when purchasing goods and services. If you spend over £100 (£100.01 or more) on goods or services using your credit card then you get added protection. Both the credit card company and the supplier become jointly liable for the product or service. So if your business purchases a PC or laptop, for example, then both the supplier and the credit card company would be liable if it stopped working within a few days.

If you regularly purchase expensive goods, equipment, travel, etc. then the added protection may be useful for your business.

Protection

If you make regular business purchases online then most credit cards offer protection from online identity theft of your credit card. Unfortunately credit card fraud is regularly increasing. Even the introduction of ‘chip and pin’ only had a limited effect on fraud and is of little use when buying online. If your credit card provider offers identity theft protection then any misuse of your card should be protected.

Cash flow

Most credit cards offer over 30 days interest free on purchases. This can help with cash flow especially for smaller businesses. However, if you withdraw cash it is likely that you will have to pay interest from the day you make the withdrawal.

Benefits

Some cards also offer benefits or incentives to use them including-
-Free holiday insurance
-Cash back
-Airmiles

-Some type of reward scheme or points collection

Speed

Paying for goods and services is easy with a credit card. If a supplier will not offer credit terms then making an instant payment with a credit cards reduces and delay while cheques or bank transfers happen. A credit card allows you to make an instant purchase in store, on line or by telephone.