The benefits of using a business card for employers include:
- Convenience - Cards are quicker to use than the company chequebook or cash.
- Security - A stolen or lost card can be replaced, but cash cannot.
- Business payment cards in the UK are generally issued under global card schemes, and can therefore be used around the world – alleviating the need to obtain different currencies – but there is still a cost attached.
- They are useful for everyday business expenses.
- They can also be used over the phone and online.
- If you use them to cover business expenses, you don’t have to settle the bill immediately - you can benefit from an interest-free period depending on the card you use.
- Enables employers to monitor expenditure - you can specify which employees receive cards and can normally set different credit limits for each card which will help you monitor expenditure.
- A reduction in time and resources to process expense claims or purchase orders.
- Statements can be provided electronically, and often online, or as a file that can be imported into your own financial systems.
- Cards can be set up to provide better management information to identify most frequently used merchants, for example, a particular hotel chain, which may help to negotiate a better deal for the future.
- Purchasing and expense records are more accurate, which means there is less opportunity for error.
- Some cards offer value-added incentives to your staff, such as medical and legal referral and insurance packages for travel.
- Using a new business payment card responsibly can help to build up a business credit rating.
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