Four Benefits of Using a Business Credit Card

The days of carrying a fat wad of cash overseas to take care of expenses are largely over. Credit cards have become more and more common over the past few decades. Today, just about everyone has at least one credit card at some point in their lives. Those who travel or live abroad for their work should try to use a business card if possible. Here are four major benefits of using a business credit card.

1. A Credit Card Is Safer Carrying large amounts of cash around is not a good idea. Even if the money is to be used for business expenses, it is quite possible that the money can get lost or stolen. When these things happen, there is no recourse that will get the money back outside of actually catching the pickpocket. This would be quite difficult in most instances. Those who use a credit card can contact the bank and minimize their exposure to such events as long as they let the bank know of the theft. Additionally, most companies will get another card in the mail very quickly, something that banks like HSBC provide as a standard service.

2. Many Business Cards Do Not Impact Personal Credit Scores It is not always the case, but many business cards will not show up on a personal credit report. Credit reporting agencies look at outstanding credit in relation to debts and income. This debt ratio can lead to credit denials on vehicle and home loans if it is not within required parameters. Who wants to have outstanding business expenses that will be reimbursed showing up on their personal credit report? Not having debts show up is a positive benefit of using some, but not all, business cards.

3. Businesses Can Track Spending On the business side of credit card use, having employees use a business card allows management to track expenses more carefully. Items that are prohibited from reimbursement will show up clearly, and these expenses can be denied. Some receipts or small cash purchases may not give as much information to businesses, so credit cards are a better option.

4. Business Cards Can Earn Rewards Those who frequently work overseas will find that business credit cards that are affiliated with airlines or hotels can be a great benefit. Business spending can earn some employees and sole proprietors frequent flyer miles that can be used for holiday trips back home. Additionally, some businesses can pool the miles earned by employees that do not go to personal accounts to pay for flights. Both are good for business. Cash is out when traveling abroad. Using a business card can cover users from theft or fraud more easily than the use of cash. The benefits of using a business card for overseas expenses are definitely quite extensive.