Thanks to COVID, companies need to use every possible means to help manage their finances and stay afloat. For many company owners, business credit cards are an undiscovered territory. They can actually provide extra help at a time when it is sorely needed. Let’s investigate some of the benefits right now.

Understand That They May Not be Hard to Get

In answer to almost every question on the planet, the answer is ‘Google it’! Anyone who is considering taking out a business credit card will be relieved to know there are many helpful websites out there. The financial experts at https://www.nav.com/business-credit-cards/ say people want to find the best bonuses, rewards, and introductory offers on the market. They may even wish to disclose their company finances so that a web page can narrow down the most suitable options.

Separate Your Finances From Your Business

Research in America during 2019 found that most business owners were using personal credit cards rather than business ones. There are real benefits in creating a distance between an employers’ financial history and the company’s.

Initially, a business credit card will be issued on the basis of the employers’ credit score (just as if they were taking out a personal credit card). Over time, however, the business will develop its own financial history. The person’s personal credit history may then become unaffected by the success or otherwise of the company.

The more the business grows, the more funds become available on the card (The sums are likely to be higher than if someone was still using their personal credit card). These details can be used to convince other parties to lend to the business. They may also encourage potential shareholders to invest.

Tax Submissions Become Easier

Employers want to see details of their company spending at a glance. This can’t be achieved if the payments are mixed up with their personal daily expenses, using a personal credit card. Once a business credit card is in operation, only business figures will feature in the statements.

If the business credit card is used for all company expenses for one year, the set of twelve monthly statements will provide sufficient evidence for the IRS.

Use the Additional Benefits

Some business credit cards offer more coverage than they do for personal ones. These may relate to identity theft or travel accident cover. There may also be business and supply discounts, and rewards for taking out insurance.

Sometimes businesses buy equipment and it breaks. A number of credit card companies offer extended warranty protection.

Business credit cards sometimes give incentives on air miles or certain purchases. If an employer enjoys a free flight, for example, this will be a real benefit. They may need to choose whether the rewards can be used for one hotel or airline company, or for different ones.

In some instances, special purchases may be made using a lower interest rate. There may even be a 0% interest deal for a limited time.

As we can see, business credit cards can help simplify the finances of a company, and open up new opportunities for funds and rewards. Employers using their own cards at this time will be wise to consider making the change.

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