The advent of the business or corporate credit card revolutionized the credit card landscape. It ensured that even a businessman or a businesswoman can experience privacy by separating their personal credit expenditures from their business credit expenditures.
Furthermore, getting rewards specific to business expenses goes a long way in helping small business owners reduce their monthly expenses.
Saving up a little money with the aid of a credit card assists the small business owner to direct their saved up funds towards other places, such as with the provision of bonuses for employees.
If you are a business owner or employee and are unsure where to begin to make this investment, you have come to the right place.
In this article, we cover the five most important tips that you should bear in mind while picking your ideal corporate credit card. We hope that this article acts as a beginner’s guide to your several questions.
5 Tips to Choose the Best Corporate Credit Card
Different credit cards come with varying reward structures. Some credit cards award you with cashback while others award you with miles accumulation benefits. If your business involves a lot of travel, then looking into reward structures that provide you with discounts on your travel expenses in the form of free tickets or fewer fuel prices is recommended.
Looking into other benefits such as VIP lounge access while traveling via airplane is also suggested. It is also recommended to do a little research into your business’s profile before investing in a corporate credit card.
For instance, if your business involves staying at certain hotels frequently, then finding a credit card brand that has a partnership with the pertinent hotel is suggested. If, on the other hand, your business has no spending history, then a flat rate reward structure can be looked into.
The Bajaj Finserv RBL Bank SuperCard is highly recognized for its high travel reward structure, and is a good starting point credit card to look into.
2. Sign-up Bonuses
If you are considering investing in a credit card to make a few purchases, then looking into the sign-up bonus structure of a credit card is essential. If you spend a certain amount within the first few months of owning your corporate credit card, you may get high rewards in return.
The reasoning behind this is that credit card issuers recognize that businesses generally spend a lot more than the amount an average individual spends. Therefore, to lessen the burden of these expenses, reward structures are designed in the form of sign-up bonuses for such situations. However, an individual must not look into credit cards with huge sign-up bonuses if they can’t bear the monthly credit card statements that come with them.
3. Annual Fees
Some corporate credit cards come without any annual fee, and most individuals make the mistake of opting for them because of the lowered hassle they advertise. However, we recommend weighing out the merits and demerits of owning a corporate credit card that has an annual fee. It must be borne in mind that a credit card with a high annual fee is generally accompanied by a higher reward structure. If the positive correlation is potent, then opting for a corporate credit card with an annual fee is endorsed.
4. Foreign transaction fees
If you conduct your business’s operations internationally, then avoiding overseas transaction fees is iterated. Racking up a huge bill because of your frequent foreign-based purchases can be quite frustrating.
5. Employee Credit Cards
Employee credit cards are almost always paid no heed to when individuals decide to apply for an instant credit card online. However, with the progress in time, these cards have become quite popular amongst business owners. By providing employee credit cards to your staff members, you can not only gain additional reward points every time they complete a transaction but you are also extending purchasing power to them in times of business need. However, the cost of such a card with its corresponding fees must research as well.
The five tips mentioned above will help you choose the best corporate credit card, as per your needs and requirements. It is imperative that you keep certain aspects in mind, such as the annual and foreign transaction fees, along with rewards and sign-up bonuses before choosing a new credit card. These factors will heavily influence the way you use your card and are therefore extremely important to consider.