Why Should Singaporean Businesses Get Business Credit Cards?
All your research shows that Singapore is the perfect fit for your startup. If you’re stepping into the shoes of a business owner for the first time, you might feel clueless about how to set up your organization. It’s alright unless you stay clueless for an unimaginably long time that your business’ profits begin to take a downturn. In such cases, it can be a good idea to sit down and evaluate all your organizational strategies from the root level. Let’s begin with finances.
It’s common for small businesses to overlook the importance of separating business and personal expenses. If you think that you fall under this category, it is time that you upgrade to a business credit card. Other than equipping you with smarter segregation between personal and corporate expenses, a business credit card has a lot more to offer.
- Get higher spending limit: Compared to personal credit cards, business credit cards in Singapore have higher spending limits. To elaborate, a higher spending limit means that you can make costlier purchases without having to worry about the transaction failing or getting the card declined. Such purchases can include furniture, electronics, and a supply of stationary for the office.
- Get rewarded on your purchases: Like personal credit cards, business credit cards in Singapore also bring along exciting rewards like cash back, discounts, or reward points. These incentives can be used to buy things at a reduced price. It can help your business manage its budget efficiently.
- You can issue corporate cards to employees: Some credit card providers let businesses issue corporate cards. Corporate cards are payment cards that a business can issue to its employees. It enables employees to make purchases on behalf of the company without having to wait for approval from the finance department. As a business grows and more employees are onboarded, this is the smartest strategy that you can put forward to save time and boost your team’s efficiency. With corporate cards, employees can make business-related purchases instantly and can save both financial managers and themselves from undergoing the time-consuming task of getting reimbursements.
- Strengthen your business’ credit score: Just like your personal credit score, your business credit score might come in handy when your business might be in the need of financial support. The support can be in the form of loans or some other financing alternative that could demand your business to prove its creditworthiness. A good business credit history can also make it easier to negotiate better terms with suppliers and vendors.
Using personal credit cards for business spending is a common pitfall among small business owners. This can lead to several problems, including difficulty tracking expenses, lack of separation between personal and business finances, and a lack of rewards and perks specifically tailored to businesses. To avoid these issues, small business owners need to upgrade to a business credit card. With higher spending limits, rewards and perks, and corporate cards, business credit cards offer a range of benefits that can help small businesses strengthen their financial management strategies.