Part 1: Save Money with Business Credit Cards

Wednesday, March 09 at 07:50 AM
Category: Business Banking

This is part one of a two-part series on saving money with business credit cards. Article courtesy of Visa Business.* 

You already have a personal credit card, so why do you need one for your business? When used wisely, business credit cards are indispensable resources for small business owners. This article details how a business credit card can help you save money and grow your business. Whether you want to earn points for cash back or build your company’s line of credit, business credit cards can prove to be an invaluable asset to your small business.

Step One: Why Use Business Credit Cards?

Running a small business comes with a lot of expenses, but using a business credit card can help stretch your budget, from easier tracking of your finances to automatic savings. Look for a card that offers rewards points and partner discounts on purchases for all types of business-related expenses, from travel and office supplies to equipment and services.

Here are some questions to ask as you consider a business credit card.
  • How many miles per year do you drive for business?
  • How many nights a year do you stay out of town on business?
  • How often do you need to rent a car for business?
  • How many employees are responsible for purchasing items for your company?
  • How much does your company spend on office supplies in a year? 
  • Do you need tech support services, data storage, or credit reporting services?
  • Do you give gifts to clients?
  • Do you need a high (or unlimited) credit limit for the flexibility to manage the ebb and flow of business expenses?
As you read through the steps, keep thinking back to these answers, as they will give you a clearer picture of how much money your small business can save with a business credit card.

Step Two: Manage Your Finances

Managing finances with a business credit card is an important way to ensure long-term savings for your business. Using a business credit card responsibly can help you build up solid credit, which in turn will make it easier for you to secure loans and lower interest rates.

Additionally, your card can also help you manage spending in several beneficial ways:

Track Finances 
Statements will allow you to pinpoint areas where you could cut costs. Benefits include:
  • Simplified record-keeping using credit card statements to track expenses in one place
  • Separate records for business purchases and personal purchases
  • Statements exported directly to accounting software for accurate tax returns
Spend Wisely 
Convenience and perks will help you save on business expenses and bills. Benefits include:
  • Fast online bill payments with no check fees
  • Rewards earned from using your business credit card to pay for business expenses and taxes
Stay tuned tomorrow for part two of this article which discusses taking advantage of purchase rewards and calculating savings.

Links marked with * go to a third-party site not operated or endorsed by Arvest Bank, an FDIC-insured institution.

Tags: Arvest Biz, Business Banking, Credit Cards
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