When used for purchases, some credit cards automatically extend your product warranty. You can sometimes get the lender to ease the pain associated with things like the annual percentage rate and annual fees. Here are ten reasons why business credit cards can be valuable for you and your company.
For those of you that have set up an online account with the credit card company, you can likely import the data into some form of personal finance tracking software. The use of a credit card is directly connected to your credit score, the report card for borrowers.
The responsible way you handle your credit card is recorded in your credit history for lenders to review. Your high score in that credit report shows how creditworthy you are deemed by other lenders and that you pay your bills on time and spend conservatively. Conversely, irresponsible use of a credit card will produce low credit scores which can result in either being denied for future credit or paying much higher interest rates. While you usually get hit with charges for not paying your entire bill each month, sometimes the lender will give you a break in the form of the float.
The float offered by most credit cards is the grace period you have to avoid interest on a purchase if there is no balance on your card at the time of purchase. That means you get a break from 20 to 30 days during which your lender will not charge interest on your purchase.
The float is a great way to avoid paying interest on unexpected expenses or on items that you eventually decide to return. You can sometimes get the lender to ease the pain associated with things like the annual percentage rate and annual fees. Credit card companies are often open to negotiation, on anything from waiving the annual fee to lowering your APR to excusing a late payment.
You just need to ask. Due to the competition in the industry, it makes sense for your credit card company to do what it can to keep you from leaving them for a competitor. Credit card companies are major corporations with all the strength that entails.
So when you use your credit card, you get to apply that strength in your own favor. Making a costly purchase with plastic gives you immediate purchase protection that you do not get when you pay with cash or some ATM cards.
This means that you have that flexibility of spending more for your business, if you need to. Examples include travel accident coverage, identity theft coverage, and various misuse policies. Ease of use — Using a business credit card is a lot more convenient than using check. You can use your credit card online or over the phone, making transactions faster and easier. Andreas is a financial writer for MoneySupermarket.
Currently, I create and execute content- and PR strategies for clients, including thought leadership and messaging. I also ghostwrite and produce press releases, white papers, case studies and other collateral. Follow us Facebook Twitter.
Accepting credit cards will also give your business a level of legitimacy and can help instill rapport and trust with your customers. Customers do not like wasting time when making purchases. When shopping, they want their transactions completed immediately. Having a credit card facility will help you achieve this. Customers who are allowed to use credit cards may be more engaged in shopping and will tend to look positively at your business.
With more convenient payment options, more customers will be attracted to the efficient and reliable services of your business. If you have an online business, accepting credit card payments will save you a lot of time. Payments through credit cards can quickly be authorized, unlike money orders and checks, which take days and weeks to clear.
Accepting credit card payments can thus have a tremendous positive effect on your cash flow. Even if your sales are not increasing, your business will still benefit from the convenience of having your profit from the credit card sale delivered to your bank account instantly. If you do not accept credit cards, you run the risk of losing hundreds of potential customers who are not willing to pay in cash or who do not have other means to make their payments.
There are people who only use credit cards to make particular types of purchases, especially online.
Credit cards even offer benefits over debit cards, the other piece of plastic many of us carry. While debit cards look like credit cards, they lack some of the benefits of being able to charge. Credit cards are convenient for customers. Consumers want to choose the method of payment that’s most convenient and beneficial for them. Credit cards are not only easy to use in a variety of capacities, but many cards offer points, mileage, or rewards that further encourage the cardholder to use their credit cards whenever making a purchase. Difference between a charge card and a credit card Customers usually get confused between a charge card and a credit card. While quite similar, with charge cards you .