Providers of business credit cards can offer companies both private and listed a huge range of benefits, whilst also delivering excellent flexibility that allows employees to cover the cost of their own expenses when travelling or entertaining on company business. Business credit cards are usually all attached to the one credit account with the lending facility, which has its own total amount of available credit. This total amount is then divided evenly, or according to individual need, among each of the business credit cards attached to the account.
The advantages of business credit cards over having each employee pay his or her or own money and then claim the money back are numerous. There is centralised control over the total amount available to spend on expenses for one thing, and for another, there are no surprise bills for the company at the end of the month.
There’s also the potential to add, remove or increase the credit facility in accordance with a particular employee’s duties – imagine, for example, that an account director at an advertising agency has used nearly all of his available credit on his business credit card by the last week of the month, but finds suddenly that she has to travel to another city that day, by plane, and take a group of clients out to lunch. If he claimed back his expenses each month, he might suddenly have to find several hundred pounds to facilitate this activity.
With his company credit card, he can speak to his firm’s HR or accounting team and ask to have his credit limit increased on a short-term basis to cover the expenses of his trip. Having business credit cards available to staff has the dual effect of increasing the flexibility with which the employee can travel or entertain clients (or both, as in the example) whilst also working to improve employee satisfaction: you can imagine the fictional Account Director feeling rather aggrieved at having essentially to cover the costs of his company’s activities, even in the short term.
Cash back credit cards are a terrific way to maximise the return on any spend you make, and for the careful user can be a real money saver. Cash back credit cards reward the use of a credit card by returning a percentage of each transaction as cash back sum- effectively reducing the cost of each purchase by a small amount. Some people choose to have and use a cash back credit only for specific items on which they spend a considerable but consistent amount each month. For example, if you were to have a cash back credit card only for use on fuelling your car, and you were able to rigidly stick to a regime of using the cash back credit card only for this purpose, and paying it off in full each month before any interest was charged, you would effectively be using the cash back credit card to reduce the cost of your monthly fuel bill by a small amount: the same amount that the cash back credit card returns to you as cash back.