There is a constant difficulty in the owners of SMEs to manage the financing.
And this is because we have been educated to see credit as an enemy when it is far from it.
The use of a business credit card is usually done without rigor and discipline, which in the long run generates an uncontrollable snowball of debt. The misuse is from the dentist’s service of the owner’s daughter, the wife’s personal computer and to the vacations of the administrative manager.
In addition to complicating the administration, it unbalances the company numbers.
All administrators, regardless of size factors or budgets should know how to use credit cards in companies.
And here are some reasons to put barriers between personal and corporate credit:
Create a history
A company’s credit history is a decision factor for clients, investors and organizations. Like people, it is a reference that can play for or against.
If the firm has no track record, it is telling the rest of the world that it prefers to operate outside the structures, which inspires some distrust.
The credit card account statements organize for themselves all expenses incurred by date, amount and concept.
This relieves the workload in the administrative department and helps more easily detect inappropriate expenses.
All expenses with a card generate reward points that can impact valuable savings. Depending on the type of program, analyze which one is more committed to the dynamics of your business.
You will be of no use an air mile program if nobody travels. It is better to opt for a fuel saving program or other benefits.
In the scheme you can distribute the cards in a personalized way and thus have a thorough record of what each person spends, allowing full control over the expenses of each employee.
The credit line, the interest rate and even the rewards that this entails will depend on the seriousness with which a business credit card is used.
Consult with your advisor and administrative director which is the best option for your company, always taking into account the dynamics of operations that it has.