A business credit card can be very convenient. The following are good reasons to use such a card.
You do not have to shell out your own money and get reimbursed
Without a business credit card you might have to give out your own money first for business expenses and then get reimbursed. Oftentimes this process is laborious and it could literally be months before you get your money back. For a lot of people it might be difficult to spend this money, especially if it is a lot of money such as if you are paying for the expenses of a business trip such as airfare, hotel and so forth or for a big company meal. You may simply not be able to afford to front the money and end up having a problem that way. You also do not have to worry about keeping track of these expenses to have to report back to the company.
Advantages for the company
There are many advantages for the company to use a business credit card. You can give these out to your employees so that they can pay for things and you do not have to worry about one person in the company paying for everything or having to pay people back. It also makes it easier to track your employees’ purchases and make sure that you are only paying for what you should be. Also, you get the added bonus of getting something first and then paying later saving you the interest money that naturally occurs. You will also have the protection of the credit card. If an employee makes a purchase and then the company does something wrong and refuses to give you a refund, then you can charge it back against the credit card. Also, you might not want to give your employees a lot of cash to walk around with. If the credit card number gets stolen you are usually protected and not liable, but if money gets stolen then you are usually just out of luck.
A business credit card can be advantageous for both the company and for the employees. Be sure to check the different cards offered by the different credit card companies. Some of them might include different rewards such as cash back or frequent flyer miles, which might be useful and save the company money as well. The above points highlight other reasons why these are very good for companies.