There were nearly 1.2 million small businesses in Canada at the end of 2015, and that number is constantly growing. It’s no surprise that small businesses have a lot of expenses to cover and account for, and when another one comes up, they may not have the cash on hand to pay for it all right away. But fear not, entrepreneurs: small business credit cards are just what you need to keep things running smoothly. However, in order to get the most utility out of them, you’ll need to choose the ones you use carefully.
Why Use Credit Cards?
As mentioned above, many businesses struggle with adequate cash flow at some point in their operations. If you need to send an employee to go pick up supplies or meet with someone a long distance away, don’t worry about coming up with the exact amount of cash they’ll need to do it: just hand them the company card.
Small business credit cards can also be extremely useful for record-keeping purposes. Because credit statements are generated automatically and can usually be accessed at any time online, running your expenses on credit can make your bookkeeping obligations much less burdensome. Virtually all of your expenses will be accounted for in that one document, and all you have to do is file that information away properly according to your own internal systems.
Making Small Business Credit Cards Pay Off
For businesses operating on especially tight margins, cash back credit cards can be an ideal way to add a little extra leeway in your budget. These cards give a certain amount of the money spent on them back to the holder, typically no more than a few percentage points of the total. Still, since charges made to business cards are often much higher than those made to personal ones, getting even a tiny percentage of each one back in liquid cash can really add up. You can then take this cash and reinvest it into your business, maximizing how far your money can go.
Cover Your Travels With Credit Card Rewards
Some credit cards offer users travel rewards in proportion to their spending. This can take the form of hotel points or airline rewards like Air Miles, and one could even count gas reward cards in this category too. With these cards, your business account will rack up plenty of rewards just by conducting normal operations. This can be especially useful if your business requires you to meet with long-distance clients or investigate leads and opportunities in person – assuming you don’t spend too much time on the go, most of your travel expenses could be paid for this way!
Play It Safe With Credit Insurance
Some businesses prefer cards that offer reliable insurance options over any kind of bonus perk system. This makes sense if your transactions will consistently be large and your card may end up being handled by many people who might lose it. Though Canadian credit laws will offer some protection to any credit card user regardless, businesses risk more when their cash flow is compromised and may even go under as a result of these complications. If you’re very concerned about the security of your card, it might make sense to make insurance your priority during your credit card search.
Get Your New Small Business Credit Card With Bonsai Finance
The truth about small business credit cards is that you can’t do without them, so take the plunge and apply for one of your own now through Bonsai Finance. Our lenders cards with a plentiful selection of perks, rates and terms to make it easy for you to obtain a credit solution tailored to your enterprise’s exact.