Rewards are one of the most appealing aspects of all credit cards. These credit cards should also be used to manage cash flow and to access short-term credit, but rewards are where you’ll see a material bonus to your ordinary business spending.
The simplest way to maximise your rewards is to use your business credit card for absolutely every business-related purchase you can. It’s far better for employees to use their business credit card for miscellaneous business expenses rather than their own card and waiting until the end of the month for employers to repay them.
If employees use their personal card then the business isn’t reaping the benefits of merchant-related rewards.
But that doesn’t mean you should encourage unrestricted spending. Make sure your business credit cards are only ever used for purchases that would have been made ordinarily. And take a few minutes to make sure that limits are in place for each team and employee to stop spending from escalating out of control. It’s also beneficial to read the small print associated with your business credit card and make sure that you’re aware of any limitations in place.
Office spending can also be carried out using your business credit card to obtain rewards. Stationary, other office supplies, team meals, and utilities can all be paid for using the card and by paying off the balance with debit at the end of the month you can receive countless rewards without paying any interest or fees.
But there’s no need to limit it to the physical operating costs of the office. Software is a significant sunk-cost for any business and these services are often required to keep your business afloat.
Paying for software using your business credit card is an easy way to get a bonus from the rewards system and cushions the cost just a little bit. And this can apply to every single department in your business, to every single purchase your business makes. Whether that’s for marketing, product development, onboarding employees, or recruitment expenses.
Regardless of whether your business is a small operation consisting of a handful of people juggling multiple roles or a medium sized one with a formal hierarchy all your business expenditure should go through your business credit card to maximise the benefits of its rewards structure.
The most important thing to remember is to pay off your credit card’s balance in full every month to avoid interest charges.
This is where having read the terms and conditions comes in helpful. Knowing your minimum charges, any interest charges and the fee structure for your business credit card is key to using it to its full potential. That’s one reason why it’s a good idea to go with a lender that is upfront about all that information like Cape.
Rewards are there as benefits for the credit you’ve borrowed and to encourage you to spend more. But it’s worth keeping an eye on that expenditure and with a strong cash flow management tool you’ll be able to do that within the app of your credit provider to make sure you’re spending within your limits.
Rewards are commonplace to credit. They’ve been a staple of credit products for almost as long as credit has been available. But often they can be for minor and unnecessary upgrades to products that you don’t use.
Before you choose your business credit provider, make sure you take a detailed look at the rewards they offer you. At Cape we’re supplying businesses with rewards that make a difference to your business.