Did you know that spending on credit cards by small businesses is expected to reach more than $680 billion in 2022?
Corporate credit cards allow you to better control business spending, reduce expense fraud, and can even offer significant rewards.
Choosing the best corporate credit card for your business isn’t always that easy, however. With so many options to choose from, finding the best fit for your business may take a little work.
Read on as we look at some practical tips to help you make the right choice.
1. Examine Your Business Spending
There are many different types of business credit cards out there, and not all of them will be suitable for your business. There’s no point in having a card that offers travel rewards if your business doesn’t involve much traveling, for example.
The first thing you should do is examine your business spending. You should look at how much you spend, when you spend it, where you spend it, and what you spend it on. Knowing these things will help you make an informed choice.
2. Compare Fees
Every corporate credit card will have fees of some kind, whether it’s an annual fee for using the card, a cash advance fee, foreign exchange fees, or a whole range of other fees.
Now that you’ve done your research you can work out which fees are likely to impact your business the most, based on the way you spend. You can then choose a fee structure that works for you.
An important thing to consider when choosing a corporate credit card is how flexible it is.
If you need to issue multiple cards to employees, then you won’t want this to be an onerous process. You might even want to consider a virtual corporate credit card such as DiviPay.
A virtual corporate card is like a normal card that lives on your phone. It allows you to easily issue cards to employees, track spending, and even turn off card access at the push of a button.
4. International Usage
If you spend a lot of money outside of the country, then you need a business credit card that can be used abroad and doesn’t charge extortionate fees for international use.
You should look at how exchange rates are calculated, whether there is any markup on these, and if there are additional fees for using the card abroad.
5. Consider Perks
One big benefit of corporate credit cards is that many of them come with perks and rewards.
As we’ve already discussed, you need to find a card that offers rewards that are suitable for your business. Also, don’t be suckered in by the promise of great rewards if it comes at the cost of higher fees or a higher APR.
Choosing the Best Corporate Credit Card
The best corporate credit card isn’t going to be the same choice for every business.
You need to take a look at exactly what your business spends its money on, who is spending it, and where it gets spent. You can then make an informed decision from the wide range of different corporate credit cards that exist. If you make the right choice, a good corporate credit card can be a great asset for your business.
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