An enterprise requires a myriad of cash expenses for everyday operations and other contingent expenses arising on the go. Under such circumstances, keeping a credit card customized for business use can be of much help in meeting such expenses. A report stated that the credit card base in India reached 47 million in 2019 and is expected to grow at a CAGR of more than 20% by 2020-25.
Another report suggests that the transaction amount for personal and business purposes surpassed 48,000 crores up until February 2019. Easy accessibility to business credit cards with their multiple benefits can be touted as one of the typical reasons for such a surge.
An individual can apply for the payment instrument from any financial institution offering such cards. These business credit cards in India can suitably help a borrower manage his/her business expenses smartly.
Here are some reasons how a customized business credit card can be the niftiest option for the smooth operation of an enterprise.
Why should one opt for a business credit card?
- The high credit limit with easy EMI conversion
Typically, business credit cards in India come with a high credit limit which makes them suitable for business transactions. It allows the entrepreneur to meet everyday expenses without affecting the working capital and cash flow. Moreover, the credit card allows the borrowers to convert their high-end purchases into feasible EMIs without any hassle.
Business owners prefer the payment instrument as it keeps funding readily accessible to pay for immediate expenditures. Furthermore, a borrower must avoid late bill payment, and know how to use a credit card wisely to make the most of such benefits.
- Cash withdrawal and loan facility
These payment cards have widened their scope of utility by offering easy loans and cash withdrawal facilities on the available credit limit. Its cash advance feature allows swift availability of cash when needed.
Someecards enable users to avail of loan on the remaining credit limit and even withdraw cash from ATM at a nominal rate. This feature is convenient for a business owner during an emergency monetary requirement. Cards like the SuperCard suit the needs of small and medium business owners as such withdrawals come at zero interest or charges.
The issuer of the said card also provides pre-approved offers to customers to simplify application processing. These offers are available on several financial products, like personal loans, business loans, and credit cards. Check your pre-approved offer by simply entering your name and contact number.
- Attractive reward programs
Another feature that makes business credit cards preferable is the reward programs offered. The use of these payment cards allows users to collect reward points on transactions, as joining bonuses, as well as on achieving spending milestones. These accumulated points can be redeemed by users to make business-oriented purchases while saving big through discounts and cashback.
Moreover, users can lower their payment liability by redeeming these points and using it for hotel booking, during business travels, flight ticket purchases, etc. They can also avail of benefits like cashback which makes credit card usage more beneficial. An entrepreneur can further save significantly on his/her business expenses by planning on the things they can do with the accumulated credit card reward points.
- A suitable instrument for building credit
A business credit card is issued by financial institutions based on a borrower’s credit history. Using a credit card smartly and making payments in time will further improve a borrower’s credit profile, and CIBIL score as the lender will mark a positive business transaction report. Moreover, with a CIBIL score of 750 or more, a business owner can negotiate for better terms as well.
- Easy eligibility criteria
These payment cards customized for business use are convenient to avail due to simple eligibility criteria. An individual needs to belong in the age group of 25-65 years to apply for a business credit card in India. Moreover, the borrower must not be a defaulter with bad credit history. Holding a CIBIL score of 750 or above only increases the chances of availing of the card. Apart from these points, an applicant needs to show his/her address and identity proof as well.
Apart from such benefits, an entrepreneur must also make it a point to select a credit card that comes with advanced security features against frauds, cyber thefts, and scams. Even comparing the benefits of different credit cards will help an entrepreneur choose the ideal card for a business’s use.
Ways to keep your credit card safe from frauds
Credit card fraud in India have increased dramatically in recent years. In a recent parliament debate, the Ministry of State for Electronics and IT mentioned that, till December 2019 of the FY 2020, there are around 50,000 cases of credit card, debit card, and net banking frauds in this country.
This situation sparks the question of how to keep a credit card safe from such incidents? Here are some smart ways that you can follow to safeguard your payment cards.
- If you have more than one payment card, then use one of them as a designated card for online shopping. It limits the risk of payment card fraud. Financial institutions often offer special cards for online shopping. To know more about them, you can contact the credit card customer care number.
- When you set-up a password for your accounts, be wise about it. Try to create a long password (8-12 characters) that contains both alphabets, symbols, and numerical. Such passwords are difficult to crack and offer better security.
- Another way to safeguard your credit card is to avoid any unreliable website. If you are making transactions, always purchase from a trusted vendor. You can check the URL to distinguish between such websites; if it does not have ‘https’ then it is not safe to use.
- Also, if you receive an email or phone call asking for your card details, then do not reply to them.
Lastly, you can check the credit card statement regularly to see if there are any discrepancies or not. In case you notice something, you can inform the issuer about it, and they will do the needful to protect you financially. Leading credit cards like SuperCard have dedicated mobile applications to check statements, and contain all the advanced security features to prevent any misuse.