Understanding Credit Card Benefits

WalletFor small business owners, credit cards are not just a cost to be managed. They’re also constructive financial tools that can bring a range of benefits to your company – if you use them correctly.

Increased liquidity

Credit cards are a handy tool for keeping cash flow under control. Using credit cards effectively, however, involves monitoring interest rates, annual fees and spending limits, as well as making the most of deferred payment options, which give an extended interest-free period on purchases. With a strong system, credit cards can be a quick and easy way to bridge short gaps in liquidity. Some providers also offer flexible repayment options, which can make it even easier to schedule your payment dates effectively.

Cash flow management

In a small business, particularly one just starting out, using a credit card for company expenses can be the easiest way to delineate company spending from personal spending, or spending within different departments. Most providers will even offer supplementary cards, which can consolidate purchases into a single account.

Purchase protection

A small business thrives on low overheads, so losing out on goods and services when companies go bust, fail to deliver, or provide faulty goods can cause significant financial problems. Purchasing with a credit card, however, means you are protected for losses between £100 and £30,000 under the Consumer Credit Act, Section 75. Providers also protect against fraud, as long as it’s not a result of negligence, and can protect against employee misuse, too.

Access abroad

For businesses that operate abroad or travel regularly, credit cards are a quick and flexible spending solution. Purchasing abroad in this way is also covered by the consumer credit act, so you have added protection here too.

Reward schemes

Credit cards come with a dizzying array of extras for small businesses to make the most of. Cashback cards are the most obviously advantageous, essentially paying you a percentage of your purchase cost for using the card. Other frequent offers include air miles, reward scheme points (like Nectar points) that are redeemable for goods and services, travel insurance, car insurance and even access to business lounges in locations around the world.


The wide selection of cards and rewards on offer can seem overwhelming, but finding the right one can open up a number of opportunities. With all the benefits on offer, choosing credit cards wisely can make a real difference to a small business. Even if you value simplicity over any bonuses, providers like American Express offer a no-frills Basic Charge Card that fulfils the essential functions of a credit card without the additional costs or complex features.


  1. Well post man.That was so helpful.I was thinking about a card so your informative post helps me a lot.Thanks for posting 🙂

  2. Great article! When it comes to choice, it’s best to compare and do research before deciding on one in order to figure out which option best fits you and your needs. It can help save you money and stress later on that’s for sure! Thanks for sharing!

  3. I agree that there is a wide selection choice when it comes to credit cards, and because of this, it may be best to do research before deciding on one to figure out which option best fits you and your needs. Plus, comparing cards beforehand can help save you money and stress later on! Thanks for sharing your post!

Speak Your Mind