As the name itself suggests, business credit cards are for business class people. Specifically, these cards are designed for entrepreneurs and business owners. For managing business expenses in a smart and cost-effectively manner, these cards are specifically designed by the bank and financial institutes. By leveraging the business credit card high credit limits, exciting rewards, cashback, discounts on hotel bills, air lounge membership, waived airline baggage fees, perks and unique offers can be availed.
Eligibility CriteriaÂ
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For applying the business credit card, social security is enough for identification if you’re a sole proprietorship, freelancer or self-employed. But in the case the business is running in a partnership, cooperation or LLC then UIN (Unique Identification Number) is needed for verification. Minimal documentation work is required to get the business credit card.Â
Loan Qualification
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Getting a loan through traditional ways from the banks is a lengthy and time taking process. If a good credit card score is maintained, then it eases the process of passing the loan from the banks for business expansion or for any other business opportunity.
Increase in Cashflow
With the assistance of business credit cards, the cash flow as well as line of credit limit can be increased. By increase in cash flow, the purchasing power of business owners can be highly increased. It gives liberty to businesses to enlarge their purchasing capacity.
Ease of Tracking
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All the transactions can be easily tracked through an online portal. The number of times the expenditure and purchases are done through the credit card can be easily captured. Through cashless payment, credit cards are a better and digitised way of doing payment. For the ease of bookkeeping, accounting and taxation personal expenses should never be done through business credit cards. A separate credit card for paying personal expenses should be kept.
Go Cashless
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For skipping dealing in large amounts of cash or through a chaque book, paying through a digital wallet is an easy and secure way of doing transactions. By leveraging business credit cards, several benefits can be availed like high credit limits, lower interest rates, huge discounts on early payments and longer period for interest accrues.
Security
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On the purchase of goods through business credit cards, security is provided if any incident of stealing, goods undelivered or accident happens. In case of any dispute in the account or at the time of purchasing the goods, the improper charges do not need to be borne until and unless the dispute is resolved.
Conclusion
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At the time of issuing the business credit cards, the bank offers a secured credit limit. Once the business or company is making a good record of payment, then the card can be easily turned into an unsecured card. The credit limit also gets increased after a good credit score is maintained. Before applying for a business credit card, it is a must to determine which cards suit your requirements. From the national or regional banks, the business card can be easily obtained.
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