The Secret Weapon in Your Wallet: How Business Credit Cards Empower Entrepreneurs

27 May 2024

Business credit cards are the secret weapon in your wallet. Find out how these little cards empower entrepreneurs.

Business Credit Cards

If you’re flicking through search engines looking for a reason to join the 605,000 UK SMEs who utilise a business credit card then you may have read that these cards can:

  • Simplify business expenses: By separating your personal and business expenses you’ll find it easier to track your expenditure, generate reports, and monitor cash flow.

  • Provide rewards: Many business credit cards offer rewards in the form of cashback, points, and airmiles.

  • Help you build a good business credit score: When managed correctly, credit cards can enhance your credit score. A good business credit score can help you gain access to asset finance and mortgage options. Just be sure to always pay off your credit card consistently and keep your credit utilisation low. 

  • Facilitate employee expense management: When providing business credit cards to employees, some cards allow you to set predefined budgets and access limits.

  • Improve cash flow management: By enabling you to make purchases up to four weeks before making payments, credit cards can help with cash flow management.

  • Safeguard your purchases: Many credit cards provide safeguards against fraud, including but not limited to refunding damaged items and advanced monitoring of fraudulent activities.

  • Provide flexible access to quick financing: It’s hard to predict when a good investment will make an appearance. With a business credit card, you can get the jump on exciting opportunities as and when they appear, rather than letting the right moment pass you by.

These are all good points.

But what does life with a business credit card look like? How do business credit cards really empower entrepreneurs on a day to day basis?

How do business credit cards empower entrepreneurs?

Here are three examples of how business credit cards can empower entrepreneurs.

Safeguard your purchases

If you run a business like a hair salon or gym, equipping your team and customers with the tools they need to do their best work is essential. But what happens when those tools turn up faulty or worse, don’t turn up at all? Some business credit card providers offer to step in and ensure you receive a refund or replacement.

Cashback and rewards

Let’s imagine you run a B2B financial services business that requires lots of travel. A business credit card could mean the difference between paying for that flight to New York or claiming it for free through your airtime rewards.

Flexible access to fast financing

It’s hard to know when the right investment opportunity could appear. If you run a car dealership, you could come across the perfect vehicle and find yourself in need of making a quick payment to take the vehicle off the market before it’s swept up. In this case, a business credit card could be the secret weapon in your wallet.

What you should be aware of before applying  

It’s important to pay your credit card balance in a timely manner. Missing a payment could result in late payment fees, high interest rates, reduced credit limits, and lowered credit scores. Each of these can have a long-term impact on your businesses cash flow and financial health. Carefully consider how much you are able to borrow.

Find a business credit card with Funding Options by Tide

Whether you’re a car dealer looking for the perfect vehicle to sell or a beautician hoping to purchase that new wavelength laser, a business credit card could be the answer to your cash flow and financing needs.

At Funding Options by Tide, we help connect businesses with suitable lenders. Just click the link below to get started.

Find a suitable business credit card to support your venture.

Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.

It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.

Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.

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Funding Options

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