Examples Of Using A Business Credit Card To Save Money

Wednesday, 22 June 2022, 9:58 am
Press Release: Hugh Grant

Most of us rarely think about saving business money with business credit cards. They are not just a convenience to pay for business expenses when you are short on cash but also come with lots of saving opportunities. No doubt credit cards make it easy to overspend than actual financial needs but when used wisely, they can save lots of business bucks that can be spent on other productive areas to make your business grow. However, one should choose the best credit card for the individual needs and requirements of your business.

Below are some solid examples of how a business credit card can save you money while you are using it to finance business purchases and payments.

Sign-up Bonuses

A credit card could be a great saving tool. Most companies offer sign-up bonuses with new cards. This means you may need to reach a particular spending limit in a given period of time to claim your sign-up bonus. Such bonuses can range from cashback to free reward points and more. When you use your card enough to qualify for the bonus, you are eligible to claim and use that bonus in any way you want. In this way, you can take your business savings to a whole new level.

Free Rewards Points

When you swipe your business card for material purchases or to make payments, you can earn free reward points that are redeemable for a variety of things. For instance, when you swipe a business credit card on particular retailers and POSs, you start earning free rewards that you can redeem according to the company’s terms and conditions. In this way, you are saving/earning more money while using a card for day-to-day business purchases or payments. To get the most out of free points, ensure to read the fine print carefully and understand where you can earn free points and how to redeem them before they expire.

Travel perks

As most businesses rely on travel, having a good travel credit card can make travel cheaper and more convenient. When you book an air ticket, taxi, or hotel using your credit card, your card starts earning free travel rewards for you. And then you can redeem those free travel rewards on travel-related expenses like car rental, accommodation, air tickets, etc. Not only this, travel cards also help business owners enjoy free access to airport lounges. A travel credit card can also come with no foreign transaction fee. This means you can save a lot of bucks by paying no fees on transactions when you use your card in another country. Free checked bags are another great travel perk that most credit cards offer. You should shop around and compare to find the best credit card with enticing traveling perks and benefits.

Price and Purchase Protection

Many credit cards offer price or purchase protection to protect your hard-earned business money. Price protection means if you swipe your card for a product or service and then you find it for a relatively lower price, the company will pay you the difference to help you find the best rates. The price protection offer is valid for a given timeframe once a purchase is made. Similarly, purchase protection is a little-known credit card perk but can protect your money in the case ordered products are damaged or of low quality. If you find the delivered items broken or damaged, the credit card company will offer you a replacement or reimbursement for the products in full.

0% Introductory Rates on Balance Transfers

As most credit cards come with high-interest rates, paying off a balance of a high-interest business credit card can cost you much. This is where lower or no interest introductory rates can work as a great financing solution for you. Balance transfer credit cards usually offer a 0% introductory rate for a particular period of time (up to 21 months). And you can use these cards to transfer the balance of your old card so you can get enough time to pay down your credit card debt even without paying a single penny towards interest. Hence, you should pay off your balance before the 0% introductory rate period ends. Otherwise, you might be paying a higher interest rate than your old card. Reading the terms and conditions is a must to avail the benefits of a 0% interest period.

Final Thoughts

Business credit cards can help you finance business purchases and streamline cash flow when used wisely. Using a little percentage of the available credit limit and making constant monthly payments on time are the key aspects of using a credit card in the best way possible. As a result, you can save money, build credit, and finance business purchases effectively.

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