Business firms require substantial capital to enable smooth running and also expand their scale of operation. The fact that SMEs contribute significantly to the growth and development of India’s economy has made it possible for business owners in the country to avail adequate financial assistance as and when required.
For instance, besides extending sizable loans to business owners, financial institutions are now extending business credit cards in India to help entrepreneurs cover their business-oriented expenses more readily. Such cards effectively allow firm owners to keep their business and personal expenses separate at all times. Conversely, it is the duty of users to be cautious when it comes to using a business credit card and consequently, be aware of the features and benefits accompanying the same.
Features of a business credit card
Here is a list of the most prominent features and benefits of a business credit card.
#1. High credit limit and EMI option
Typically, a business credit card in India comes with a high credit limit. It directly allows firm owners to meet their short-term business expenses with greater ease without constraining their current working capital. Also, credit cards used to meet business expenses enable users to convert their high-end purchases into feasible EMI options. It directly helps business owners to pay off the cost of purchasing items like equipment, accounting software, etc. quickly.
#2. Reward points
Credit cards offer reward points to users on most transactions and on achieving certain milestones. By redeeming accumulated reward points, users can make their business-oriented purchases more affordable. They can also lower their payment liability by redeeming the points while purchasing flight tickets, hotel bookings, etc. during business travels. Business owners can further plan the things to do with the accumulated credit card reward points and save significantly on their business expenses or otherwise.
#3. Exclusive benefits
A leading business credit card in India may extend special privileges to users which further help to make the most of their business-oriented transactions. For instance, users are often entitled to avail attractive discounts, cash backs, and suitable EMI options on purchasing goods and services from partner outlets. In turn, it will help small and medium entrepreneurs to save extra bucks on their office-related purchases by using such a credit card.
#4. Cash withdrawal and Loan facility
Leading financial institutions offer credit cards that allow users to avail of a loan instantly against their unused credit limit. Such cards may also allow users to withdraw instant cash from an ATM in lieu of a nominal processing fee. This facility serves as a means to provide additional financial aid as and when required by a firm owner. For instance, a Bajaj Finserv RBL Bank SuperCard can be deemed suitable for small and medium business owners in more than just one way. It acts as a 4 in one card providing facilities of a cash card, credit card, EMI card, and a loan card.
The financial institution also extends pre-approved offers to customers to help them make the entire experience of seeking financial assistance smooth and worthwhile. In most cases, such offers are available on several financial products, including personal loans and business loans. Check your pre-approved offer by entering your name and contact number.
While at it, check out how to apply for a credit card online in 3 steps to enjoy a hassle-free experience of availing a card to meet your business expenses.
#5. Account for expenses better
By availing a business credit card, firm owners can keep their personal and business-oriented expenses separate and can monitor the same more effectively. Furthermore, it will help them account for expenses incurred by employees on particular purchases better. Collectively, it will help business personnel to compute taxes more accurately and without any confusion.
#6. Simple eligibility criteria
Leading credit cards for business come with simple eligibility criteria. Usually, individuals between the age of 25 years and 65 years with a clean repayment history and a credit score over 750 are considered eligible to avail of a business credit card.
Nonetheless, business owners must also make it a point to select a business credit card in India that comes with reliable security features against cyber thefts, frauds, and scams. Once such factors and others are weighed in, credit card comparison will be easier and more effective.