Cash or credit? That’s a question that has been asked for years, when people exchange money for goods or services. Of course, one could also add a couple of more options: check (old school), or PayPal (modern). Either way, there are often different options depending on the situation.
In terms of credit, it seems like there is a continuum of comfort with the use of credit cards in particular. Some people are highly conservative and prefer to pay cash, while others tend to use credit cards freely. I tend to be in the latter group, though it doesn’t mean I spend freely. I just use the cards regularly, while trying to minimize spending overall in the process. There can be some real advantages to using credit cards as a part of our finances, as long as we have discipline.
Just as there could be some benefits for an individual to use a credit card, businesses could see value as well. A business credit card could be a good thing for an organization to have, for a variety of reasons. While every situation is different, here are 3 reasons why a card might be good for businesses:
Ease of Use
When using a card, you simply have to carry it around. With cash, one has to deal with not only the hassle of carrying it and getting change, but also other aspects that might be a hassle in terms of a business. Checks aren’t exactly easy to deal with either, carrying them around.
Credit cards are convenient, as many of us realize. That’s a good reason to consider them, when keeping in mind the concept that time is money.
It’s good for a business to keep an accurate accounting of expenses. Along those lines, credit cards make it easier to facilitate tracking expenses.
Why? Because one can go online and get access to account activity quite easily in many cases. Account statements are convenient way to get summarized transactions. Also, one could try to classify expenses easier than manually recording and tracking things.
Using a business credit card, there could be some added security that could be helpful to manage certain risks. Things such as travel insurance, liability protection, and fraud monitoring among others can be good potential benefits for a business to have.
My Questions for You
Do you have a business credit card?
What other benefits do you see to such cards?