Should Small Business Owners Get a Business Credit?Card?

Entrepreneurs usually have a misconception about business or corporate cards. In general, they think that such cards are only necessary when a business goes sizeable.

In fact, small business owners need to closely monitor their finances and manage cash flow, especially in the first few years of operation. Meanwhile, with a limited number of employees, an intelligent expense management solution will help cut costs and improve operational efficiency, allowing owners to focus on growing their business. Therefore, one way to purchase the essential goods or services your business needs without delaying critical payments to other vendors and painful reconciliation is to obtain a business credit card.

Your company’s need for a business credit card depends on several factors, including your size, industry, overhead, and growth potential. If you experience any of the following when running your business, you may need a business credit card:

• You run a store on Amazon or eBay: As e-commerce continues to grow, running an online store also means a lot of expenses, such as rent, advertising, shipping, etc. Particularly in the early years, costs can greatly exceed revenues, so a credit card is helpful for further expenses. After moving from growth or expansion to maturity, renovations and bulk orders may be costly enough to warrant credit card purchases as well.
• You subscribe to AIGC tools: As content creators use AIGC tools to acces to innovative solutions that can generate high-quality content efficiently, the free trial of such tools can no longer meet their multiple requirements, and they usually opt for the premium services with a monthly or annual subscription fee. Credit cards are popularly used to pay the subscription fees for those tools. Compared to other payment methods, credit card payment process is easier, faster and more stable.
• Your employees spend money on your company’s behalf: Some business credit card providers such as Qbit allows you to create unlimited employee cards tied to your account. This can be highly useful if your employees often spend money on your business’s behalf. When they do so through your business credit card, the charges immediately go to your account. This is much more organized and expedient than employees making business purchases on their personal cards and then filing expense reports for reimbursement.
• Cash back rewards would significantly impact your bottom line: With many business credit cards, you earn money as you spend. These cash back rewards may prove helpful for bolstering your cash flow or paying for certain purchases. They can quickly add up if you spend tens of thousands of dollars on your credit card.

While your business might be in its early days and you may not think you need a separate credit card for it, business credit cards can provide important benefits to your company. They can be great ― if they’re right for you.

Takeaway

Qbit offers an integrated card management tool for corporates. Businesses can apply for both virtual or physical cards with customized budgeting for different employees to make payments for business purposes. Cardholders add the card to Google Pay or Apple Pay or Alipay just like any other Visa or Mastercard.

Incorporating Qbit Employee Card into your company’s financial strategy can lead to significant benefits, from streamlined expense management to enhanced security and better cash flow control. By leveraging the power of employee cards, businesses can achieve greater efficiency, improve financial oversight, and provide convenience to their employees. Whether you are a small business or a large enterprise, the Qbit Employee Card Card is a valuable tool in your financial toolkit.

For more information about the Qbit Employee Card and to sign up, visit https://www.qbitnetwork.com/virtual-card or contact our team at [email protected].