What are the advantages of Credit Cards for Entrepreneurs?

Starting a new business all from scratch is a very tough task. While doing so a lot of things needs to be considered in order to get the best outcome. Finance is a core of any business be it small or large, the better finances are managed, the better will be the productive outcome of the company. For big-scale companies, managing finances is usually done by a whole team which we call Finance Department. But for small-scale businesses or entrepreneurs, managing the finances for the whole company might fall under their jurisdiction only. Going through all these hardships, entrepreneurs usually rely on credit cards for their expenses.

While using a credit card in this situation sounds pretty much useless as many think that it will not make much of a difference as the credit limit you get might not even be worth it. Well, that is not exactly the case. Credit Cards are not just for individuals but they are also very reliable tools for small businesses and entrepreneurs. Even if you have a big company, credit cards are very efficient in those scenarios as well. the entrepreneurial market has always relied on credit cards for their day-to-day expenses. Credit cards can also help them track down their spending behavior.

The credit cards used by the entrepreneurs are business credit cards, these credit cards are a little different from normal credit cards. The Business Credit Cards take your company or start-up as a different entity in India. This means your business is a different entity than yours. This also means that the credit cards you will be applying for are based on your business terms including credit history, credibility, and credit score of your business.

7 Smart Reasons To Choose Business Credit Cards

The business credit card can be much more than just a payment method. Just like normal credit cards, business credit cards provide lucrative rewards, and smooth transactions and are also very secure. Not just that but more than that, the reasons why the entrepreneurs like credit cards are –

1. Travel Rewards

Entrepreneurs travel a lot, not every time but there might be a time when they have to. In that case, whenever they make purchases for tickets, they get reward points or as we call it a value back on the money spent. This value back is determined by the bank itself, for example – with Paytm HDFC Bank Business Credit Card, you get 3% cashback on all purchases with the transaction such as recharges, utility, movies, and mini app from the Paytm application. The rates can be different for other categories as well. This rate can be changed by the bank itself to what they deem fit.

2. Fraud Protection

Credit cards are very secure tools, they provide the utmost security in your every transaction. To make a single transaction, you need to enter the pin only but in cases of big-ticket transactions, the user will be shared with an OTP which needs to be entered to make complete the process. The OTP is shared on the registered mobile number so it makes the process very thorough and secure. In order to secure the whole transaction, the whole payment has to go through several portals to take permission from Creditors and only if you receive the approval, can you make the payment. This is a tricky process but it helps the users keep safe from any fraudulent activity.

3. Finance Large Purchases

Credit Cards are no doubt can finance big purchases for the company. These purchases can be both big and small. No matter the size of the purchase, you can buy first and repay later. You can even use credit cards to buy the inventory, once done you can repay the vendor with the help of credit cards which you can further convert into EMIs.

4. Fund your Business

Credit Cards can practically fund your business. While doing business it is important to have funds in your bank no matter if it is an emergency or not. In case of any shortage, the funds from the credit card can help you pay for all of your balances according to the credit limit. Once the crisis is over, you can repay the amount in the original form. Obviously to keep u

5. Saving on important expenses

When using credit cards, you can measure your expenses, and make sure that the payments you are making are all according to your need. This will not only help you cut off on unnecessary expenses, but you will also be able to save a sufficient amount with the same which can be used somewhere else. Adding to the list, the rewards you get on every transaction, you receive value back for the same. This value back might not always come in monetary form but you can pay for many other things with the. Further, you also get a discount on dining, hotel and air tickets, this also includes saving money wherever possible.

6. Build Credit Rating

Having a credit card and continue using it responsibly can help you not only build your credit rating but a good one. The more you use your credit card for payments, the more your credit history will be lengthy and when you repay the balance, you get the plus points for the same. A great or lengthy credit history means a more detailed view of your credit which makes the creditor and credit bureaus trust you and your creditability.

Business Credit Cards are very popular among entrepreneurs these days because it helps with the necessities of business which start from funds.

Conclusion

Credit Cards are great tools for having separate funds be it for an individual or an entrepreneur. However, credit cards are a great choice for entrepreneurs, they hardly decline credit cards. The cards are a great choice for new business mostly because of the funds, then the rewards and the security and saving one can with the same. Starting a business is easier said than done, one must have all the things in the right place to start one, so using and keeping a Business Credit Card will only help you resolve the issues revolving around your business.