How Business Credit Cards Help You Save on Expenses
As a Singaporean, you know that when it comes to credit cards, you are spoiled for choice. No matter what your spending pattern is, you are bound to find a few cards that were seemingly made keeping you in mind. As a result, zeroing in on a card becomes difficult.
Add to this business credit cards with attractive offers and this decision becomes even more complex. Especially for entrepreneurs and small business owners. They are constantly wondering if they should charge expenses to their personal credit card or consider getting a business card.
So, how does a business credit card differ from a personal credit card? Well, for starters, a business credit card, as the name suggests, is used for business purposes. They are usually used to improve the credit borrowing capacity of a business. Additionally, approval for a business card is generally easier than a personal credit card.
Which begs the question, what are the eligibility criteria?
To be eligible for a business credit card, you need to be:
- At least 21 years old.
- A company or business with a net worth of at least S$50,000 or more (depending on the age of the company).
- A sole corporate liability or a joint and several liability with a minimum annual income of S$30,000.
Note: Companies should be registered in Singapore and must have at least one director who is a Singaporean or Permanent Resident.
Now that you know what the criteria are to be eligible for a business credit card, the next logical question is why get one in the first place?
Well, business credit cards help you track your expenses and consequently save on them much better than personal cards can. Here are a few ways how business cards can help you save on expenses:
1. Monitor and analyse official expenses of all employees
Almost every business, whether big or small will require some amount of travel and will have to entertain their clients from time to time. In such cases, instead of relying on individual employees to monitor the amount they spend on these activities, using a business card makes more sense.
Corporate credit cards like the DBS World Business Card, offer expense management tools so that you can monitor and analyse all charges made to the card. Moreover, you get 24/7 access to the tool and while it is a paid service, the fee you pay is well worth the convenience of being able to monitor business expenses easily.
2. Control card usage by employees
Probably one of the biggest challenges businesses face when they reimburse business expenses that employees charge to their personal card is that there is no limit to which an employee can spend. Even if you explicitly state that expenses for a business dinner, for instance, cannot exceed S$1,500, it’s always easy for a person to charge more to their card.
This is completely eliminated with a business credit card. Most of these cards allow employers to set usage limits for each authorised cardholder. This way employees cannot exceed the limit assigned to them. The UOB Corporate Card is a great example of a business card which helps you set predetermined limits for users.
3. Pay low interest rate
This point alone should be reason enough to get a business credit card. You see, in comparison to personal credit cards, business credit cards charge a much lower rate of interest. For example, the Maybank Business Platinum Mastercard’s interest rate is 20% p.a. And then there’s the DBS Visa Platinum Business Card which charges you only in 12% p.a. each year as interest.
4. Enjoy travel perks such as concierge andlounge access
If you own a credit card for personal use, you probably know by now that you can get travel perks such as concierge services and complimentary access to airport lounges with certain credit cards. These benefits are available with business credit cards too!
Here are the travel perks you get with corporate cards in Singapore:
|Card Name||Complimentary Travel Insurance||Complimentary Airport Lounge Access||Concierge Service|
|DBS World Business Card||Up to S$1 million||Up to 10 visits||Yes|
|DBS Visa Platinum Business Card||Up to S$1 million||No||No|
|Maybank Business Platinum Mastercard||Up to S$1 million||No||Yes|
|Citi Corporate Card||Up to S$1 million||No||No|
|UOB Corporate Card||Up to S$1 million||No||No|
5. Enjoy free corporate liability waiver insurance
In addition to travel perks, corporate credit cards also come with complimentary corporate liability waiver insurance. This insurance protects the company or the business from any misuse of the card by your employees.
DBS, for instance, covers misuse up to USD1.65 million per company and USD25,000 per person when you apply for 2 or more DBS World Business Cards. Citi and UOB also provide similar coverage free of cost for their corporate cardholders.
6. Get access to some really useful services
As mentioned above, business credit cards give you access to expense tracking platforms. But this is only one of the many services you get access to. For instance, with the Citi Corporate Card, you also get access to Renepay. This B2B procurement platform based in the cloud puts you in touch with suppliers, allows you to negotiate online, and ultimately reach the best price for all of your business purchases.
Other services include the recurring bill payment facility you get with DBS’ World Business Card and access to Mastercard smartdata.gen for customised budgets and expenses with the Maybank Business Platinum Mastercard.
7. And, of course, earn cashback or rewards
Like all credit cards, your business card also earns cashback and rewards each time you use the card. You can earn cash rebate up to 2% with the DBS World Business Card and earn 1 Citi Dollar for every S$1 you spend with your Citi Corporate Card. And with your UOB Corporate Card, you get up to 10% SMART$. All the more reason to get a business credit card.
The bottom line is that time is money. It doesn’t matter if you own a multi-million dollar enterprise or a small family business, the principles of business remain the same. With a business credit card, you save time on monitoring and analysing expenses, which in turn saves you money. And quite a bit of it!
This article was written by BankBazaar.sg.
BankBazaar.sg is a leading online marketplace in Singapore that helps consumers compare and apply for financial products such as credit cards and personal loans.