Why Business Credit Card Are A Good Idea

Why Business Credit Cards Are A Good Idea

03 September 2021

Over the last 18-months, a drastic change in lifestyle for everyone has turned the small business industry on its head, allowing many of us time for reflection, with many of us left wondering:

Maybe I should have applied for that business credit card! Is a business credit card a good idea, and what is the best business credit card?

The answer is: Definitely, and it can play a massive role in the success of your small business.

Jumping head-first into any small business can be considered risky. But, unfortunately, that mindset can sometimes trickle down and affect other decisions made along your pathway to success. Whether it is overheard by other business owners or the continued disappointing legacy of ‘the big four’, for some reason, the reputation of small business credit cards varies.

Why on earth is this? People just want to know why a business credit card is a good idea and why a small business should utilise it as a tool to help their wonderful dream come true.

Well, it’s time to set the record straight, squash those misconceptions and highlight the benefits. There’s good news ahead.

Business Credit Cards Are Great for Managing Cash Flow – Financial Flexibility

Freedom! It is a word we throw around all the time, not realising it is just another mindset. You already have a mountain of responsibilities running your business. Including other financial liabilities like a small business loan. So why do you need one more?

A business credit card is simply a payment tool to assist you in running all the various facets of the business:

  • Paying suppliers
  • Essential purchases
  • Paying ongoing business costs
  • A detailed snapshot of your cash flow position

All of this becomes a breeze, giving you control over how the business generates cash to fund operating expenses and binding commitments. Let’s not forget the flexibility to access other opportunities in the business the moment they arise.

Encourage Responsible Spending from Staff

You’re late for a new client introduction and meeting.

You throw a staff member your credit card in a last-minute dash out the door.

Wait! Which one did you throw?

Gone are the days of the petty cash box, wishful thinking, luck and trust coming into play when making snap decisions. Business credit cards are a brilliant way of getting your employees involved with agreements, setting budgets and understanding limitations. With crystal clear ongoing access to real-time cashless purchasing and business spending, you can recognise and reward your employees for adhering to the budget(s) set. In addition, having that agreement and access encourages a sense of responsible spending from your staff.

Helps Build Your Business Credit Rating and Score

Just like voting, just like tax returns, just like breathing, the credit score is simply unavoidable, but it doesn’t have to be all doom and gloom. Let’s not forget, we’ve all mastered the art of the breath from the day we were born!

Be it assessed by Equifax, Experian or Illion (formerly Dun and Bradstreet), a business credit score is based on your business’s age, type and size; your past payment performance history; all defaults, judgements and any legal proceedings. It is all available for public record, unlike personal credit ratings. And that is the key!

Having a business credit card means you have a new, distinct line of credit to spend on all the colours in your business rainbow. Make your repayments easily on time and reap the benefits by building your credit rating and score.

But you do have to use it!

Yes, it’s vital to pay bills on time and essential to keep debts as low as possible. Still, many forget or are unaware of the Credit Utilisation Ratio (CUR). This is the percentage of your business’s total credit that is being utilised. Having a CUR of roughly 0-30% helps build your overall business credit rating and score.

Separating Business Expenses and Personal Expenses Makes Tax Time Much Easier

Your business will always be a separate operation, institution, or establishment from a legal perspective. Nobody knows who came up with the saying, ‘don’t mix business with pleasure’, but many live by it successfully. Unfortunately, ‘don’t mix business finances with personal finances’ doesn’t have the same memorable poetic ring. Having a business credit card is one of the best ways to make sure tax time doesn’t become a migraine.

Having a clear and definitive statement of your business activities will benefit you with your E-tax / Tax return. In addition, it will allow you to access vital business tax write-offs and deductions without hindering your personal expenditure.

Blurring the lines of business vs pleasure, you run the risk of having personal assets seized or even litigation against your company that could have easily been avoided. This is one of the most vital benefits of having a business credit card.

With a business credit card, you have all the power and access to control your company’s destiny. Tax Time doesn’t even have to become a time at all. So enjoy your freedom and spend time on the finer things in life.

The Archa Business Credit Card Difference

Veruca Salt: Hey, Daddy, I want an Oompa Loompa! I want you to get me an Oompa Loompa right away!

Mr Salt: All right, Veruca, all right. I'll get you one before the day is out.

Veruca Salt: [singing] I want the world. I want the whole world. I want to lock it all up in my pocket. It's my bar of chocolate. Give it to me now!

Do you think Roald Dahl would have ever imagined in 1964 that one of his most outrageous characters' behaviour would become the norm today? Surely not!

Well, it’s true. Our society has become all about getting everything now! Ask, and you shall receive, search, and ye shall find.

At Archa, we offer incredible cards, and we don’t get personal.

With no personal guarantee needed, it’s no longer business as usual. We have found the best ways to give you total access and control; you’ll never look at a credit card or your small business the same way again!

Say goodbye to waiting in line at the bank with multiple documents in your hand and queries in your head. With Archa business credit cards, you will get results in seconds. Add new team members and keep track of transactions, issue new cards, freeze and unfreeze cards and much more.

You set your guidelines and spending rules, and they work in the background for your business. After all, this business won’t run itself, and you need to make every cent count. So, who needs a constant reminder or distraction when you’re desperate to get the ball rolling?

With that streamlined look and automatic real-time processing of your money management at your fingertips 24/7, you can set it and forget it, so you can go out and get it!

Archa uses the best data analytics to adapt for you and give you the most precise snapshots of your business. It is also connected to Xero and MYOB accounting to make life just that much easier.

Are you worried about security with all this instant gratification? Archa has a world-class fraud protection system and support: 24 hours a day, 7 days a week. Combined with real-time notifications, nothing will go unnoticed, and all financial decisions will be made by you.

And just to prove we are here and now, in the present and ready for you, we offer this game-changing business credit card instantly, by subscription (no annual fee)! Yes, it’s true, just like Netflix, and there is no personal guarantee required.

It’s time to let go of the stigmas, myths and mindsets of the past. There is a whole new world of instant control that can boost your small business above and beyond.

Sign-up to join our private beta now!

Corporate Credit

MORE STORIES