The credit card market in India has witnessed a growth of 27% in 2019, according to a report published by the RBI. The report also indicates that the total transactional value of credit cards in this country has increased by 30% compared to the previous financial year. The benefits offered by the best credit cards in India are playing a vital role in its growth.
Apart from its usage benefits, the best business credit cards in India are assisting companies in keeping better track of their business expenses. Most of them are using credit card machine for small business so credit cards will help you to make payments.
What is a Business Credit Card?
To manage their short-term operational expenses, Business credit cards in India are the most popular type of payment card available for companies. These credit cards are particularly designed for this purpose, and any organization can apply for such cards. Moreover, these cards aid companies to track and manage business expenses, and regulate them, if required.
5 Advantages of Business Credit Card
Expense Tracking
Organizations often ask their employees to manage their business-related expenses like ticket booking, hotel booking, and other expenses, on behalf of the company. Managing and approving such expenditure reports can be frustrating and time-consuming. To eradicate such issues, companies can avail of these business credit cards.
Such payment cards are linked to the company’s business account. Therefore, it allows firms to track these business expenses via monthly, quarterly, or half-yearly statements provided by the respective financial institutions.
Reward Programs for the Company
Similar to any other credit card, these business credit cards also offer additional benefits and rewards points, like frequent flyer miles on ticket bookings, points for fuel purchase, etc. However, such benefits are received by the organization, not the employee using it.
Additionally, these benefits and reward points help firms to lower their future business expenses.
Boosts a Company’s Credit Rating
Furthermore, business credit cards in India help companies to boost their credit ratings. If a company can use it efficiently and pay its credit card bills in time, then it will improve its profile as a borrower.
Therefore, companies with a low credit rating can take the assistance of this financial product and make responsible usage for a positive impact.
Higher Credit Limit
Business credit cards are typically equipped with a higher credit limit compared to a regular credit card. Hence, companies can use it as a line of credit to make purchases for the business. Moreover, they can also enjoy 45-50 days of an interest-free period before making bill payments.
Travel and Purchase Protection
Similar to personal credit cards, business credit cards also offer protection against travel and purchase-related transactions. It includes no charges on foreign transactions, purchase protection, and extended warranty protection, trip cancellation coverage, etc. These additional benefits help companies to tackle any unforeseen financial roadblocks with ease.
How to Apply for a Business Credit Card?
Companies willing to avail of this payment card can apply for a credit card online for quick approval. They can visit the website of their selected credit card issuer and check the necessary eligibility criteria. If they successfully meet these eligibility criteria, they can proceed to apply for it.
After forwarding the application, firms are also required to provide the necessary documents. They can upload it via the website or hand it over to a visiting representative.
After successful completion of these steps, companies can receive their business credit card approval in no time.
The best business credit cards in India allow firms to manage their finances better. It helps them to streamline business-related expenses and eliminate unnecessary usages with careful tracking.
Know the Advantages of the Best Business Credit Cards in India
Business credit cards in India are a subtype of credit cards, which only companies can avail. These payment cards are purpose-built for corporate usage and come with customized benefits.
Business credit cards have several advantages; here are some of the prominent ones –
- Track business expenses: These credit cards help companies to track their business-related expenses. Employees often pay for their travel and accommodation expenses, etc. from their personal account and then later get it reimbursed from their company. However, firms have noted irregularities with such expenses.
Hence, using a business credit card in India can eliminate this issue. Companies receive credit statements from financial institutions; thus, they can track these expenses, and fix any usage loopholes.
- Improve their credit rating: Moreover, these credit cards help firms to increase their credibility as a borrower. If they can successfully repay their bill amount due within the given period, it helps improve their credit ratings. Thus, it is an effective tool for businesses to build their credit history.
- Additional benefits: Similar to other personal credit cards, business credit cards also offer additional perks and reward points. However, employees do not receive these benefits; they benefit the firm and can be utilized to save more on future expenditure. Therefore, organizations can use such benefits to lower their expenses.
- High credit limit: Typically, these credit cards have a high credit limit. Therefore, companies can use it to make big-ticket purchases by using it as a suitable line of credit. Additionally, they can also enjoy a 45-50 day interest-free period before making bill payment on the due date.
- Travel and purchase protection: Furthermore, these credit cards offer travel and purchase protections like nil foreign transaction fees, trip cancellation coverage, mobile phone coverage, etc.
Additionally, business credit cards in India are easy to avail of, as well. Firms can apply for them online upon fulfilling the eligibility criteria and can make the most of these payment cards.
