Finance is one of the primary things startups need in abundance. Keeping the business-funded until it generates profit is utmost necessary. And one of the flexible and beneficial financial tools can be a credit card. Financial companies nowadays provide customized business credit cards making these suitable for startups to meet short-term monetary needs.
These credit cards come with more advantages compared to the standard cards; for example, a high credit card limit. They may not also affect your CIBIL score. These cards will only have an impact on your business as a whole. Here are a few other ways how a business credit card can help startups:
1. Better management of expenditure
Card issuing companies often provide various tools for a business card holder to manage his expenses more efficiently.
Some of these credit cards offer real-time expenditure management via a user-friendly online dashboard. This dashboard can let you restrict the amount spent via the card daily, weekly, yearly, etc. for more control over your spending. You can allow transactions only with select merchants and that too, in particular categories.
Moreover, this management tool will provide you with sophisticated analytics. These analytics give you detailed information about your expenses and cash flow. They will also help you determine your top sellers so that you get to negotiate better with them.
2. Improving business credit score
Business credit cards are one of the best and convenient tools to increase your company’s credit score and build a credit report. This way, your company will become more creditworthy to receive high-value financing quickly in times of needs.
However, you have to manage and use the credit card responsibly to improve the credit score.
3. Comparatively more convenient than business loans
In case of a business loan, you have to start paying EMIs instantly after availing it. Also, you have to pay interest on the loan even if the funds remain unused. However, you will get a grace period to repay your credit card dues, and also avoid interest by paying the bill within its due date.
One advantage that you may not receive with business credit cards is the high line of credit with business loans. But, you can convert your credit limit into a personal loan with some credit cards. Compare all such options available if you want to apply for a credit card like this.
For example, consider the Bajaj Finserv RBL Bank SuperCard. This credit card gives you an emergency personal loan which can be repaid as EMIs without any interest for up to 90 days.
4. High-security features
These credit cards come with several security features that ensure your transactions are protected. These provide you notification alerts via SMS and email not only for every payment but also for the suspicious ones.
The security features keep you safe from fraudulent transactions and scams. The SuperCard has Zero-fraud liability cover along with In-hand security features to protect you from the same.
Bajaj Finserv also has pre-approved offers that make it more convenient for you to avail these credit cards. Pre-approved offers come with an array of other financial products and services like business loans, home loans, personal loans, etc. as well. You only have to provide your name and phone number to check your pre-approved offer.
5. Exclusive rewards and benefits
Similar to conventional credit cards, business credit cards also offer exclusive rewards which make your transactions more affordable. You get the following standard benefits:
- Offers on movie tickets.
- Discounts and cashback on dining.
- Fuel surcharge waiver.
Additionally, you may receive the following privileged benefits:
I. Accelerated reward points
A business credit card can have multiple domestic and international merchant partners. You can earn extensive reward points using the card to buy their products and services. For example, you can earn 20 reward points on spending a mere Rs. 150.
Some cards provide cashback on all spends. Others provide cashback on utility bills, taxes, railway tickets, cabs, etc. Check for the cashback offers if you want to apply for a credit card.
III. Worldwide acceptance
One of the superior features of a business credit card is its global acceptance. Some of these credit cards have millions of overseas partners.
Not only the above but business credit cards also provide various types of insurance. These insurances cover frauds by employees, air accidental death, passport loss, flight delay, baggage loss, baggage delay, and lost cards. So, avail a business credit card and fund your startup effortlessly.
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. You can find Gaurav on Linkedin.