Organize finances & improve employee retention: 2 X 8 tips for corporate credit cards in companies

In recent years, the use of credit cards has increased Companys increased of all magnitudes. All advantages at a glance.

The facts: credit card use for companies

Credit cards are not only useful for private individuals, but also for companies in many situations. There is a good reason for this: using credit cards offers many advantages, such as the expenditure track, get rewards and avoid cash. However, using credit cards also comes with some risks, such as the possibility of fraud and the need to manage credit card debt. When used responsibly, credit cards can be a valuable tool for businesses. The following applies: only those who know all the advantages and risks of using credit cards can make the best ones decision in the selection find the right credit card.

Credit cards are used for cashless payment transactions, whereby all transactions are collected over a period of time and then billed to an account linked to the card. An annual fee is due for the card, which is mainly intended to cover the effort involved in processing the transactions. The cards from common providers are also generally accepted internationally, which means a considerable organizational advantage for the card user overall – and especially in a commercial context.

What types of corporate credit cards are there?

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A company usually has company credit cards issued on itself and the name of its employee. Sinn and the purpose of such a card is greater cost control, which ultimately benefits the company's profitability. In general, within the framework of company credit cards, you can choose between the Business-Distinguish credit card and corporate credit card.

Business credit card

Using a business card is a good option, especially for smaller companies or the self-employed. There is little individuality and scope here, but that's what the Customer a fixed price-performance ratio and only small Costs per card dealt.

corporate credit card

The corporate credit card, on the other hand, is suitable for large companies, non-profit organizations or authorities. Companies that want to manage a large number of company credit cards get very individual conditions and a much larger service package than the users of business cards. The financial framework is also larger by a few. With the help of corporate cards, all expenses of all employees can be listed and evaluated at the end. The company may have a positive transparency that makes mistakes virtually impossible. The use of corporate cards is a significant simplification for the internal company Accounting.

8 benefits of corporate credit cards for businesses

Corporate credit cards are also extremely flexible and therefore particularly suitable for companies that have very individual requirements Solutions are interested. Various equipment features are freely negotiable and can be adjusted accordingly to your own needs be adjusted. As nice as the flexibility of a corporate card is - it makes the comparison of the different providers extremely complicated. In addition to the flexibility and simplification for bookkeeping, the Corporate Card has other advantages.

1. constant liquidity of employees: It is possible for employees of the company to be financially independent around the clock. This is especially useful on business trips or appointments and requires less organizational effort than cash advances by the company or many individual travel expense reports.
2. Improve accounting and bookkeeping: A company credit card contributes significantly to a better organization of your accounting system.
3. Perfect cost control: By seamlessly listing all employee expenses, an excellent comparison can be made.
4. Employee motivation through bonuses: This can be used very well for the purpose of employee motivation. A monthly bonus for those who have managed best is often the guarantee of efficient money management.
5. Constant security: Money cannot simply be spent unseen or “disappear”. The precise listing ensures transparency, which protects the company against inexplicable losses.
6. Flexible Spending Limits: A company credit card also significantly increases flexibility, as you can flexibly adapt spending limits to the needs of your company.
7. The insurance also abroad: An employee is usually insured through his corporate card. If, on a business trip, something happens to him, he has an accident or becomes ill, he can insist on medical care with his card on the spot.
8. Business building: Corporate credit cards can be a great way to build your business credit. This can help you get loans and lines of credit in the future. However, it is important that you use your card responsibly and make all payments on time.

Better accounting and employee retention: 2 best practice cases for corporate credit cards

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In order to once again illustrate the great usefulness of company credit cards, two best-practice cases will be examined more closely below.

How credit cards improve accounting in companies

Company credit cards offer a major advantage for bookkeeping: all booked expenses from all company cards are debited once a month from a reference account. These include above all the costs for business trips or incidental expenses. The number of companies that depend on regular expense reports is higher than expected. In addition to areas of application such as classic field service, freight forwarding companies that look after a large number of employees are often overly busy with spending controls. And it is precisely in these cases that the use of a corporate credit card makes extremely good sense.

Credit cards are basically aimed at everyone customers a bank, and above all private individuals. Of course, not everyone has a credit card, as there are other options if you only want to expand your financial resources for a short time. Then you could, among other things, look for a short-term loan on a loan comparison platform (e.g. at Kredit Nordic), which then covers the one-off financing requirement, but after that fast is repaid.

This is how credit cards improve customer and employee loyalty and in companies

As a Online-Merchants might want to consider allowing the use of credit cards in their store. Especially if you run an online shop, you should make sure that you can accept credit card payments. This makes shopping easier for your employees and customers and not only helps you with your Turnover zu increase, but also quite incidentally improves employee loyalty.

Credit card payments are such a popular form of payment because they offer customers and employees a convenient way to make purchases. There are a few things to consider when setting up credit card payments, such as which payment service provider to use and how to protect your customers' information. If you take a few precautions, you can in your online store for sure Accept credit card payments, significantly improving customer and employee retention.

8 tips: Companies should pay attention to this when using company credit cards

However, there are a few things to consider when using corporate credit cards. That way, the benefit of a delayed payment doesn't have to outweigh the costs associated with a credit card in the long run. Alternatives Forms of financing (e.g. classic loans) could be on the rise again Significance gain if digitization also makes other forms of payment practical, cashless and internationally usable. By following these simple guidelines, you can make using credit cards in your business a breeze.

1. Define purpose: Make sure the card is only used for business expenses.
2. Set Limits: Set credit limits for all employees to protect yourself from nasty surprises.
3. Trust is good, control is better: You should always keep an eye on your spending and make sure you stick to your budget.
4. Financial Education: Train your employees on the use of credit cards.
5. Note the credit limit: Corporate credit cards usually have a higher credit limit than private credit cards. This can be a huge advantage for businesses that have a lot of expenses. However, it's important to keep track of your spending and make sure you stay within your limit.
6. note the interest rate: Business credit cards often have a higher interest rate than personal credit cards. This means using your card wisely and making sure you pay off your balance each month.
7. Transparency to avoid disputes: The topic of money in particular often leads to disputes among employees. Provide transparency to avoid them.
8. Avoid overdraft interest: You should regularly review all expenses and pay off your balance in full each month to avoid interest charges.

What does the future of credit cards look like?

Regardless of which method you opt for individuals decideIn order to meet their financing needs, companies will probably not be able to do without the possibilities of a credit card any time soon. Because a company credit card is an all-round talent and makes work easier and safer for the company and more convenient for the employee. Especially with complicated billing and compliance procedures, the monthly collection of the corresponding expenses of individual employees continues to offer a decisive organizational advantage.

But what should be certain in any case, the Future becomes more digital. and credit cards in general could face competition. Credit cards are already being issued digitally in some cases today – without the classic plastic card. And this is precisely where an additional advantage arises for companies that use a large number of individual cards. Through the so-called back-end (the possibility of linking digital payment options with other IT-interfaces) it is easy to apply for and manage the credit cards as well as the corresponding expenses check and to book. So the credit card is probably not quite obsolete for the time being. However, it remains to be seen to what extent private individuals, thanks to other digital and international payment options, will rely on credit cards as a pure means of financing in the future.

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