Credit cards have permeated the Indian demography with steady swiftness. As of January 2019, there are over 46.1 million credit cards in circulation. More than 150 million credit card transactions are forwarded every month across the country.
Business credit cards form a substantial chunk of the Indian credit card industry and its growing at a healthy 9-10% rate annually.
The widespread prevalence of credit cards is hardly surprising, given the numerous benefits that they offer. Small businesses can optimise their credit card usage in such a way that it only pays for their dues but also helps them save money.
Given below are a few simple tips to get the most out of your credit card, which may help grow your business in more ways than one:
- Avail attractive rewards and incentives on every transaction
Most credit cards offer cashbacks and reward points on every purchase that you make. Cashbacks are usually around 3%-5% of the transaction value, which add up over time to form a substantial quantum. You may also incur reward points which can be used later to avail discount on purchases or buy gift vouchers.
- Convert payables into easy EMIs
As a small business, you may find it challenging to make significant disbursements for payables in one go. RBL Bank Supercard enables you to turn high-value purchases into affordable and easy EMIs to spread the total cost of that purchase across multiple monthly statements.
- Avail travel benefits
Most credit cards come with travel rewards, which you can earn when you purchase air tickets using them. These travel miles can be converted into reward points, which would allow you to get discounts on flight tickets and hotel bookings.
Travelling is one of the costliest expenses, especially for small businesses, and credit cards can help you save substantially on just that. If you are a frequent flier, make sure the card issuer of your choice provides such provisions before you apply for a credit card.
Opt for a credit card which entails travel miles instead of those which promote co-branding. As a frequent flier, you may have to board different airlines, and co-branding limits your choice.
- Improve cash flow and save money
Obtaining receivables is one of the biggest challenges of new businesses, while payables have to be cleared in full at the earliest. A business credit card can help bridge this gap and ensure optimal cash flow at all times. You may use your credit card to pay for accounts payable and maintain a steady inventory, failing which your business will start losing money.
- Save money on your daily commute
This feature also has to do with travelling, albeit in a different way. While some credit card companies levy a fuel surcharge of 2.5%, several others have corporate tie-ups with fuel retailers which allow you attractive discounts on fuel purchases.
It lets you combat high fuel prices with your credit card. If you are a frequent commuter with your personal car, look for fuel surcharges and discounts before you apply for a Bajaj Finserv credit card.
These are some of the ways you can save money using your business credit card. You can opt for top cards such as the Bajaj Finserv RBL Bank SuperCard to avail such benefits together with one single credit card.
Nevertheless, a credit card can help you save a substantial amount on several accounts when used efficiently. Save on multiple purchases with a single card to increase your savings substantially over the whole year.