Need to build your business financial history, streamline operations, and motivate your employees?
Need to build your business financial history, streamline operations, and motivate your employees? This one key move delivers on all fronts.
Across the Web you can find reasons to go beyond personal credit cards and get a business credit card in your business name, if you don’t already have one. Advantages of getting a business credit card include:
- Establishing a separate credit history for your business, which in turn can help you get a larger loan when you need one;
- The ability to grant credit cards to staff members to cover travel and other expenses;
- Access to higher credit limits than with using personal credit cards alone, because you have more combined credit for your personal and business needs and are less likely to max out; and
- Business-specific rewards including shopping discounts for office products and services.
But recently I discovered a totally unexpected benefit of a business credit card: It’s a morale booster and motivator for your management team.
In my company, we recently obtained a new business credit card that enables me to easily manage staff credit cards, through an online dashboard.
So, for the first time in my business’s history, I decided to issue a few key managers a business credit card with a pre-set spending limit—in this case, $1,000 each. All expenses are automatically reported in the company credit card account, and I can download the records directly into our accounting program.
It’s convenient, and I’m able to easily manage spending limits up or down if needed. If someone leaves the company, it’s very easy to go online and discontinue that person’s access. And because there was no extra charge for issuing the cards, there was no barrier to giving credit cards for relatively small amounts, such as $1,000.
All of these things are matters of convenience for my business and for me. I knew going in that we’d get those advantages—no surprises there. What did surprise me, though, was the impact that granting a company credit card had on my staff.
It was like a monster shot of vitamin B-12. It was the work equivalent of drinking a few cans of Red Bull. My staff instantly felt more trusted. They felt important.
This article was originally published on Inc.