4 Advantages of a Corporate Charge Card

Having a corporate charge card can be very beneficial in a number of different ways. Many business owners use lines of credit, credit cards, or other methods for business expenses. They overlook the option of using a charge card for their business needs, but they can be very beneficial. Here are a few of the more important advantages of using a corporate charge card. 

1. Perks Programs

Using a corporate charge card usually comes with perks. Many charge cards have better points systems than you can get with the majority of credit cards out there. With these points systems, you can receive a number of benefits that you would not ordinarily receive. For example, after you accumulate enough points, you might be able to use them on a vacation to somewhere that you have always wanted to go. 

Many of the points programs on corporate charge cards even will allow you to select a certain percentage of cash back at the end of your billing cycle. This can be applied as a credit to your bill in most cases. Anytime you get money off of your bill it will help your bottom line. 

2. Easy Accountability

When you use your corporate charge card for business expenses, it makes the process of tracking expenses much easier. Every single month you will get a detailed account of what exactly you spent your money on. When you have employees that are provided a charge card, it also makes it easier to keep tabs on their expenses. 

This will make the record keeping process easier for when it is time to file your taxes as well. If you need to deduct an expense, you have a detailed account of the expense always on file. You can usually even access the account statement online which will provide an added level of convenience for you and your accounting department.

3. Bigger Limits

Another huge benefit of having a corporate charge card is that they will traditionally provide you with larger spending limits. When you compare them with using a business credit card, you will usually be given a larger spending limit and a little more flexible terms to go with it. 

When you are trying to run a business, some months you may need more cash than others. Having a charge card with a large spending limit can make your life a lot easier. You will not have to go through the approval process for a loan or line of credit. Just charge it and move along.

4. Cash Flow

As they say in business "cash is king." When you have cash, you may not want to get rid of it easily on business expenses. Therefore, it can sometimes be beneficial to use your charge card to pay the day-to-day costs and hang on to your cash for more pressing needs. Meeting payroll, paying the lease payment, and a number of other things might be critical to your business operations. Therefore, you can keep the cash for a rainy day and charge it on your charge card. 

Improve Your Credit Score - Free Consultation