With the rise of online shopping where electronic payments have become the norm, the use of credit cards has also become extremely popular. However, while most individuals have taken the step to using these financial vehicles for their personal use, many business owners are still wary of the significance of these plastics for the growth of their business. Hence, the question remains: Are credit cards really important for business owners?
To answer this question, let us take a look at some of the benefits and downsides of using these plastics for business.
It cannot be denied that credit cards spell convenience for consumers. With these, consumers no longer have to worry about not having enough funds for their purchases. In fact, they no longer need to bring cash at all when making purchases with certain merchants. They can readily spend using the card, whether they need to purchase appliances, groceries, gas, or airline tickets. They also don't have to go through the hassles of bringing large cash around as they can just use one single card for all their transactions. Furthermore, they can readily use the cards online to pay for utility bills, services, and even goods.
The downside to having this convenient tool, however, is that people may overspend, thus putting themselves at risk of accumulating debt. When used responsibly, though, it can really make a big difference.
Funds for business are hard to obtain at times. With a card, you can readily extend your funding since this can be used as a startup capital source. There are cards that are designed specifically for business. They can very well be used to make transactions or purchases for business purposes.
The downside to using these financial vehicles as a source of capital for business is that it may be more expensive compared to personal credit cards. Moreover, they may also have higher interest rates.
Business owners can benefit from using cards through the rewards that they offer. Most cards for businesses offer rebates, enticing discounts, free items and the capacity to save more while spending more.
Business credit cards are most often equipped with fraud protection. This added security is a huge plus for any businessman. With fraud protection, you can be assured that your business transactions, such as online purchases for the company and many more other transactions involving the use of the card, are protected against the prying eyes of suspicious individuals.
Giving your employees their own cards can be gratifying. This can serve as a motivation tactic for them to work harder. The good thing about this is that even if your employees are given their own cards, you can still control how much they can spend. You also have the power to put restrictions on the use of their cards.
Credit cards can also be used to raise a company credit score, giving your business the opportunity to get approved for a business loan with a low interest rate in the future.
With all the benefits offered by these financial tools to a business owner, it cannot be argued that the answer to the question as to whether credit cards are important for business owners is a resounding "Yes!"