Small business owners are smart and savvy. Even when juggling multiple projects, they make good choices like picking a credit card with rewards they can use, whether that’s travel or cash. Finding ways to optimize a credit card can really make a big difference and help a company save money and manage expenses more effectively.
“A business credit card can help owners stay organized and gain rewards through cash back or rewards points that can be used for business travel, gifts or staff incentives,” said Anne Koski, head of business and prepaid cards at RBC. “For time-pressed small business owners, every dollar matters, so a no fee cashback card with a flat earn rate on all purchases is a smart choice for many.”
Koski Offers Some Advice on how to Maximize a Small Business Credit Card:
• Use Two Cards: Get two cards to separate business spending from personal spending. This will help a business understand its spending patterns and manage cash flow more effectively.
• Seek Value and Simplicity: Look for a no-fee credit card that provides rewards with every purchase, such as the RBC Business Cash Back MasterCard where cardholders earn one percent on all purchases with no annual fee. Check to see if there are any additional bonus rewards upon sign-up.
• Build Credit History for Your Business: Purchasing a business credit card will help establish credit in the name of the business. This makes it easier to get additional credit as the business grows and working capital requirements change.
• Additional Protection: Many cards include insurances that provide protection when traveling or making business purchases. These often include insurances that can double the manufacturer’s warranty, protect the business purchase from loss or damage and even provide assistance in the event of an unfortunate circumstance while traveling. These features are worth evaluating as they can save the business money and provide peace of mind.