The credit card usage across India touched 48.9 million in May 2019, which is a 27% growth from May 2018. It has been substantiated by the credit card usage data that reflected a total transaction value of Rs. 6 lakh Crore in 2018-19 alone.
This hike of 30% from 2017-2018 is a significant growth owing to the increased popularity of progress towards a cashless economy. Following up with the benefits offered by payment cards, financial institutions have now launched a new professional variant – business credit card.
This variant of credit cards is primarily used for business requirements and is designed to bring the cardholder benefits on their business spend. Irrespective of the size of the trade, such credit cards are available to all entrepreneurs and help a business to improve its future credit borrowing terms.
It makes credit cards the preferred financing aid for seed businesses. All that they need to know is how to use the cards to fund a new business.
How to use such payment cards to fund your new business?
Taking into consideration the escalating expenses in starting new businesses, arranging for finances in the absence of a business vintage often becomes a challenge. Under such circumstances, a business credit card offers individuals with soft financing cushion to ensure the smooth functioning of a trade. Here is how entrepreneurs can use the high limit on their business payment card to make the most out of it –
- Purchase basic business equipment
Almost all companies irrespective of their size now require basic office equipment for ensuring speedy and quality production services. However, purchasing such machinery is an expensive matter. Availing business credit cards from the reputed card issuing companies provides individuals with a high credit limit that covers the purchase or lease of such office equipment, like computers, sans straining the budget of entrepreneurs.
- Pay utility bills
With a business credit card, paying utility bills is an easy affair. Using such credit cards wisely to pay bills enables cardholders to enjoy the benefits of reward points that can later be redeemed against flying miles, fuel surcharge waiver, etc.
What are the benefits of business credit cards?
At present, approximately 65% of the companies own a business credit card, and the number continues to rise considerably over the years. Its ease of availing as compared to a line of credit and conserving cash while still purchasing supplies and equipment makes it a preferred option for all entrepreneurs. Apart from this, there are multiple other benefits such as –
- Higher limit purchase protection.
- Financial bookkeeping assistance.
- Healthy credit building.
- Reward programs and cashback.
- Separation of personal and business expenses.
- Higher spending limit.
Apart from the aforementioned lucrative features of business credit cards, card issuing companies also offer individuals with the convenience of minimum documentation to apply for the same.
Additionally, with an established business credit history, you can also avail 4-in-1 cards such as the Bajaj Finserv RBL Bank SuperCard to avail additional benefits.
These payment cards offer the cardholder with an option to enjoy add-on benefits of reward points on annual milestone spends, fuel surcharge waiver, welcome gifts on premier spend, etc. Such cashback, reward points, and bonus are exceptionally beneficial in the case of entrepreneurs who make frequent trips for their trade.
Additionally, keeping in mind the convenience of their existing cardholders, this reputed NBFC offers them with pre-approved offers that ease the application process to avail financial aid. These offers are available on numerous financial products that include credit cards, personal loans, business loans, home loans, etc. You can take a look at your pre-approved offers by providing a couple of essential details like your name and contact number.
With the best credit cards that cater to your business’s financial requirements, you can save significantly on your expenses via cashback and reward points. Choosing the right credit card for yourself will also help you have convenient access to considerable funding that is adequate to fund the functioning of a business.