Business Credit Cards are a great way for businesses including Small and Medium Businesses / Enterprises (SME or SMB) to access credit for operational expenses, shore-up cash flows and help make purchases. If you own a business or professional practice in Singapore, the following tips will help you make best use of the Business Credit Card facility.

business credit cards

Tips to wisely use Business Credit Cards

1. Plan

Planning starts with mapping your business requirements against the range of Business Credit Cards available. If your business involves a significant amount of travel for your employees you can look at speciality Business Cards that are great for fuel, hotel and travel. If you are looking to make most of your office purchases through such cards, vendor tie-up cards are a good bet.

Also, review the perks, rewards, fees and most importantly the APR (Annual Percentage Rate); a small difference in APR can make a big difference towards the balance on a yearly basis. Once you’ve got your Card, planning extends to budgetting your credit card transactions to your cash flows and not to anticipated profits.

2. Flexibility in liability options

Opt for a Business Credit Card like the Citibank Business Gold Card that offers your business several liability points like complete Full Corporate Liability, Cardmember Liability or Joint and Several Liability. The flexibility afforded can help provide even those employees who do not have a credit card, a line of credit that can be used for both business and personal expenditure.

3. Set and monitor limits

The Business Credit Card that you go with should allow you to set spending limits for all your employees. Make use of this facility by going in for appropriate spending limits for your employees based on their business spending requirements. Since this facility also comes in with appropriate reporting tools, use the associated reporting tool to monitor employee spend in line with set limits.

4. Make the most of reporting

Most Business Credit Card accounts also come with a host of reports including itemized reports, reports by category, comprehensive year-end reports etc. Such reports can not only help you monitor your spends over a variety of variables but will also help you complete your financial reporting.

5. Make your payments in full

Making your payments in full ensures that you have a maximum line of credit available at the start of every credit cycle. In many cases, rewards are tied to making payment in full and in not revolving credit. So, full payments enable you to make the most of the rewards on offer.

If you are an SME or SMB, acquiring and using a  Business Credit Card wisely can also help your business improve it’s credit score. This can be very useful when you are going in for an extra credit line.

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