Every business dreams of reaching its business goals timely. Being punctual and strict with business operations is essential to reaching significant milestones. However, no matter how organized your business must be, there will be times when something will be lacking due to insufficient financial resources or management. Here’s when business credit cards come into play.
Business credit cards, like personal credit cards, are payment cards that a business can use to fill the financial gap when pre-existing funds don’t suffice. Nowadays, many services are available that issue virtual credit cards to businesses.
If you’re confused about what a virtual credit card is, here’s an explanation: A virtual credit card, or an e-card, is a virtual payment card that users can access online through their mobile device. They function the same way as regular credit cards but are ideal for large businesses that have to deal with multiple transactions on a daily basis. They bring along several benefits for the company:
- It improves work efficiency: Virtual cards can be issued to employees, so they don’t have to rely on one person to approve payments that are to be made on behalf of their company. As a result, this would result in the financial managers experiencing a boost in their efficiency because they’ll have to spend less time settling employee reimbursements and approving miscellaneous payments. Financial managers will therefore be able to focus on other areas of their business to support business growth.
- It helps you keep control of the budget: This is the most significant benefit that virtual cards give, which makes them preferable over plastic credit cards. The business owner or financial manager can set expense limits and can get real-time updates on the amounts being drawn by the employees from one dashboard.
- It is more secure: Unlike plastic credit cards that are susceptible to theft, loss, and misplacement, virtual credit cards will only be lost if an employee loses their phone. In such instances, blocking virtual cards is much more convenient as it’s just a matter of a few clicks. Additionally, issuing and canceling virtual cards to employees is simpler to do. A company can issue unlimited virtual cards, and the company can activate such cards instantly.
- It saves money: Using credit cards to make payments can attract multiple rewards such as cashback, discounts, gift cards, or other items that can bring down the net cost of a product or service. If any bulk purchase is made, paying with a credit card and redeeming rewards can significantly save a lot of money.
- It builds credit score: Like a personal credit score, completing all due payments on time will boost your business’s credit score if all the scheduled payments are made on time. A high credit score can help in times of financial crisis when a company may require to take a loan.
Overall, virtual credit cards can be an excellent payment solution for businesses prioritizing their budget and expenditure control. Companies can use them to pay bills online much more quickly and conveniently.