An increasing number of individuals are opting for credit cards because of the convenience in transactions they provide. Its increasing acceptance has also reduced the need for carrying cash and debit cards.
Financial institutions also provide cards to complement individual spending habits. Accordingly, entrepreneurs can opt for business credit cards, which can provide them with easy access to funds to meet their short term financing needs and help in improving their purchasing power.
Business credit cards function in a similar way as personal credit cards. They come with a pre-approved limit and require you to pay bills in time. Non-payment of the bill results in interest accrual.
Several financial institutions in India offer business credit cards. Consequently, one should compare the features and benefits of all business credit cards before opting for one.
While comparing features of a business credit card, you should look out for the following standouts.
Emergency loan facility – Business owners should look for a credit card that offers them the facility to convert the unutilized credit limit on their credit card to avail cash instantly. It enables them to meet short-term liquidity requirements.
Easy EMI option – One should consider credit cards like that allow them to pay for big-ticket purchases through EMI within a tenor of their choice. The Bajaj Finserv RBL Bank SuperCard is a typical example of such cards.
Interest-free cash withdrawal from ATM – Entrepreneurs can also look for a credit card that allows them to withdraw cash from ATM without charging interest for an extended duration.
Incentives – Credit cards that offer incentives like cash backs, discounts, reward programs, etc. are also the ones you can consider.
One should use a credit card responsibly, which includes timely payment of monthly bills, limiting utilization of the credit limit to 60%, etc. Such measures can have a favorable impact on the credit history of a business.
0 Comments