Business Reward Credit Card Equals Big Savings
A business reward credit card offers the small business owner savings that would otherwise not be realized. These benefits include, cash back, free airline tickets, free hotel stays, advantages on insurance protection on purchases and temporary office space in other cities. Getting a grasp how to get the most out of these rewards programs can be a daunting task. In my experience, I have seen colleagues spending significant amounts of work time figuring out which program had the best offering and thus determining which airline they would use for a particular trip.
To help sort through the myriad of business reward credit card options, we offer the following tips.
First, if your payment habits are to pay late, thus incurring late fees or interest charges, forget about the rewards programs. Your penalties will far outstrip the value of any rewards you might receive. To get full value from your rewards program make sure you pay the balance in full on time each month. You might look at the credit card business as a bit of a gamble for the issuing financial institution. They are “betting” that most cardholders will not pay off their balances each month, if in fact they ever do. The best possible scenario for them is to have a cardholder who carries a balance and pays the minimum amount due each month. That equates to profits for them. So by paying the balance in full each month you are beating the credit card companies at their own game.
Then it is important to make sure you get rewards that match your company’s needs. What good are airline miles if your business territory is a driving territory. It would be better to get cash back or gasoline discounts for your drivers.
If you do opt for air and hotel travel, make sure you understand redemption restrictions such as blackout dates and geographic limitations. Just because there is a reward offering the limitations and restrictions may render the rewards useless for the benefit of your company.
Ensuring that you and your employees understand which merchants offer the most benefit with the use of the card is helpful as well. This will help you be more efficient in exercising your buying power.
Remember that a business reward credit card is only as good as you are willing to make it. Payment habits and being informed on where your purchases get the benefits that help your bottom line can help you optimize the benefits to be realized by these valuable tools.
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