How a Business credit Card Can Benefit an Australian Small Business

As you’re searching through the Australian personal finance sites you'll see that, as well as the personal credit cards advertised, there are also plenty of business credit cards competing for your signature. If you own a small business with a small team of people who have to travel around regularly it may be worth considering a business credit card and here we consider some of the benefits. The only essential difference in how business credit cards are set up to personal credit cards is that the cards are issued in the company name rather than an individual's name and all the corresponding debt is the sole responsibility of the company. There are a number of important differences with functionality and reporting attached to the business credit account though. Firstly the business can opt to put spending limits on the cards so that if there are engineering or sales people out on the road they can spend up to a certain amount on hotels and meals but anything over the stipulated amount will not be automatically approved. Accounts payable can spend a lot of time sorting through expense claims and making repayments, so a business credit card can be a big help to them. It can free up their time to chase up customer payments rather than having to process internal matters. Accounts people also love the management reports provided by the credit card company, itemising all expenditure and making it easy for them to police the company expense policy and reconcile accounts quicker. Another advantage to the business is that a credit card will establish a borrowing history for a small company that may be able to be used in the future to secure business loans. Staff also love business credit cards because they don't have to use their own cash for expense payments and often they can take advantage of the additional perks, like free insurance, that are offered with the card. Of course, not having to carry as much cash also means they feel more secure. Plus it opens up internet shopping to them, which means they can book hotels and travel online, saving the company money. Charge cards like Diners Club and Amex are usually used by larger corporations with many employees and good cash-flow, enabling them to pay off the full balance each month. With business credit cards only the minimum amount needs to be paid off each month so this is often a better bet for small businesses. As you can see, there are many advantages of a business credit card – for the business in general, for the staff that use them and for the accounting staff. For more information regarding business credit cards, frequent flyer credit card and credit cards balance transfers, please visit: www.lowerbills.com.au