Credit Cards and You: Cash back Credit Cards and Business Credit Cards
Banks that create business credit card accounts can offer companies of any sort a surprising amount of benefits, whilst also delivering first-rate adaptability that allows members of the company’s staff to cover the cost of their own per diem charges when away on business or taking clients out. Business credit cards are usually merely different ways of drawing on one central fund with the lending facility, which has its own singular limit and monthly repayments . This total amount is then divided evenly , or according to individual need , among each of the business credit cards depending on the one business account.
The advantages of business credit cards over having each employee pay his or her or own money and then reclaim this amount afterwards are numerous. There is a centralised control over the total amount that the workforce can put on expenses for one thing, and for another there are no surprise bills for the company at the end of the month . There’s also the potential to add, remove or increase the central account in accordance with a member of staff’s duties- imagine, for example, that an travelling salesman for a paper company has used nearly all of his available credit on his business credit card by the end of a given month, but at short notice discovers that he has to travel to the other side of the country that day, by plane, and take a group of clients out to lunch .
If he claimed back his expenses each month , he might suddenly have to find several hundred pounds to facilitate this activity . With his company credit card he can speak to his firm’s HR or accounting department , and ask to have his amount of available funds increased on a short-term basis so as to cover the expenses of his outing . Having business credit cards available to employees has the dual effect of increasing the flexibility with which any one of them you choose can travel or entertain clients (or both, as in the example) whilst also ensuring that the employees themselves do not get disgruntled: you can imagine the fictional employee in our example feeling cross at having essentially to lend money to his employer , even in the short term .
Cash back credit cards are a terrific way to claw back some of the costs of everyday life , and for a savvy card holder can be genuinely good news. Cash back credit cards pay you back for the use of your credit card by paying back a percentage of everything you spend on the card as a cash back sum – effectively giving you a small discount on everything you buy . Some people hold on to a cash back credit only for single repeated purchases on which they spend a substantial amount over and over again. For example, if you were to have a cash back credit card only for use on paying for your heating bill, and you were able to rigidly stick to a regime of using the cash back credit card only for this purpose , and repaying the capital each month before any interest were charged , you would effectively be using the cash back credit card to reduce the cost of your payments by a small amount: the same amount that the cash back credit card monthly refunds to you as cash back