The 7 Key Benifits of A Business Credit Card

7 Key Benefits of a Business Credit Card for Small Businesses

23 July 2021

As the name suggests, business credit cards are intended for use by a business (rather than for personal use). From SMEs all the way to large enterprises, business credit cards are available and are a great financial tool to improve future borrowing terms.

Especially helpful for small businesses or startups, business credit cards have a multitude of benefits when it comes to efficiency, spend management, building your credit score, and scaling up. With this in mind, we’ve compiled a list of our top seven benefits of a business credit card for your small business.

1. Keeping on top of cash flow

It’s been ingrained into us: Cash is king. So keeping on top of your cash flow is crucial to the survival of any business. For a small business, in particular, managing expenses in line with cash flow can be challenging and often laborious, especially when you’re starting out. What’s more, having access to additional finance or a safety net can really make or break a business by providing cash flow relief at critical times or acting as an accelerator for growth.

A business credit card allows you to view all your business spending in one place. The simplicity of this shouldn’t be understated. Full visibility is the best way to start managing your cash flow. This allows you to separate personal and business expenditure, a common pitfall when using a personal credit card. When paired with the appropriate software, such as your cloud accounting platform, you can identify any issues proactively.

With such a large amount of purchases and other business expenses coming in and out of your business each week, it’s essential to give your business the best chance at success by keeping tabs on these and reducing the impact on your pocket.

2. Expense management can become a lot easier

Do you work with Xero and have a myriad of receipts to deal with on a weekly basis? Have you thought about ways to streamline this process?

That’s how Archa can help.

Business credit cards can be quite the game-changer when it comes to expense management in this way. With the right business credit card, customers should be able to integrate existing cloud accounting software and manage all expenses in one place, keeping consistency, transparency and cohesion across all platforms.

Business credit cards give SMEs the ability to easily track upcoming bills, invoice payments, and receipts in a formulated way that simplifies expense management.

3. Expense management can save you time on reconciliation

As an early-stage business, we understand that time is money, and reconciling receipts and transactions can be a time-cruncher. Small business owners often use separate apps, platforms, documents, and websites to track and reconcile receipts - so much so that it hinders productivity.

The right business credit card can ensure all company transactions line up with the correct receipts, streamlining the reconciliation process across multiple cards. What’s more, a great business credit card should help you concentrate on what’s important; growing your business.

The days spent filling in expense reports and reimbursing employees for out of pocket expenses are coming to a close, and it couldn’t happen any sooner.

4. Another line of credit for emergency purchases

The reality of starting a business is that sometimes, well, s#%t happens. Having a business credit card can act as a safety net, and a provider that understands the intricacies of your business can sometimes mean make-or-break.

Should your small business need to purchase supplies to fill an order, buy resources for an upcoming pitch or pay an unexpected bill, the business can rely on the credit card as an emergency fund.

This benefit can be particularly helpful for those moments when cash flow is a challenge for your business. You can ensure that you’re not dipping into personal funds or hindered by business credit limits when emergencies come knocking.

5. Build your credibility as a business owner

A major challenge facing SMEs in their infancy is establishing a good credit score and credit rating, which can affect future borrowing power. A business credit card is the first step on this credit-building journey. It can give business owners the tools they need to manage finances to give the business its very best chance at success.

These tools include the ability to pay bills on time, keep track of spending, and simple yet effective security options that make big purchases, big ideas, and big goals a little more achievable.

6. Can help you avoid overdraft charges

We understand that an overdraft can be a helpful line of credit for businesses without easy access to credit cards. That being said, for others, it can feel like a constant tail chase between cash flow, paying back the bank, and understanding the associated fees.

We prefer to keep things simple because we know that having a business credit card with minimal fees and a no-nonsense framework is often a huge asset to businesses in their infancy. With the right business credit card, startup ‘scaries’ like hidden fees and confusing terms can be combated with ease.

7. You’ll be able to think bigger and better with flexibility

The way in which a lack of access to finance can hinder small businesses can be a huge deterrent for those considering getting started or growing.

Archa knows that having access to business finance options is a major step in the startup journey. That’s why we believe in features like instant access to cards, no personal guarantee required, and visibility on spending so that businesses can scale effectively.

Having the ability to purchase more necessities in the early stages can lead to higher productivity and scalability. What’s more, ideas and dreams can come to fruition with a bit of help from simple finance solutions afforded by business credit cards.

The Archa Difference

So, with all of the above in mind, a business must find the right type of credit card to commence the business spending journey. We know that small business owners are time-poor and often denied access to financial assistance from the big banks. Big bank technology does not allow for the intricacies of SMEs and startups. This is the gap Archa aims to plug, to make this process easier.

If you’re thinking about a business credit card, Archa’s beta program might just be the perfect fit for your small business. Our subscriptions start at just $20 per month (credit limit dependent), and more importantly, unlike traditional business credit cards, there’s no personal guarantee required and no hidden fees. Just straight up, easy to access business finance at the click of a button from Archa - your financial friend.

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