Credit Cards - The New Business Essential?

Posted by Tom Wilkins on Tue 4th September 2007 at 06:00 AM, Filed in Credit News

UK consumers rely heavily on credit card debt for a variety purchasing activities.

What about UK businesses?

A recent report suggests business can find flexibility, ease and convenience by using credit cards instead of petty cash.

The report says:

“Through the use of a credit card for day to day expenditure businesses can benefit from streamlining their cash management processes, and will not have to worry about finicky paperwork and receipts, as well as not having to worry about keeping cash on the premises. With credit cards management of expenditure can be done quickly and easily using credit card statements, and with the interest free periods offered businesses can enjoy easing cash flow issues.

There are a number of credit cards specifically designed for businesses, and companies can also assign specific staff members with their own cards, so that those usually responsible for making purchases can do so with ease. This system makes it easier for businesses to get better deals on purchases by enabling them to make purchases online.”

There is plenty of truth to these assertions in my experience. However, there is a caveat… Using business credit cards can work very well as long as there is careful control and monitoring of their use. This can be wholly inadequate in small companies resulting in many of the problems associated with consumer credit.

Nonetheless, careful selection of the best business credit deal can help provide purchase protection, low rates of interest and additional benefits. Just make sure you read the small print!!

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