Business credit card considerations

Business credit cards often offer a variety of features designed to benefit your business operations.

These can include:

• 0% Interest on purchases: This feature allows you to make purchases and pay them off over a specified period without accruing any interest.
• Cashback rewards: Certain cards offer cashback, which means you receive a percentage of your yearly spending back into your account.
• Air miles: Some business credit cards reward you with air miles or points for every purchase made. These points can later be redeemed for flights, providing potential savings on business travel.
• Other rewards: In addition to cashback and air miles, some cards offer rewards that can be exchanged for shopping vouchers, discounts, and other perks.
• Travel-friendly cards: If your business involves frequent international travel, it might make sense to consider credit cards designed for this purpose. They typically provide lower fees on foreign transactions, making them an economical choice for businesses operating globally.

Here are some key benefits and strategies for managing your business finances:

Efficient cash flow management

By managing your cash flow effectively, you can ensure that you have sufficient funds to cover your expenses even when awaiting incoming payments.

For instance, if a customer’s bill payment is pending, you can still afford to make necessary purchases.

Use of extra cards

Providing multiple employees with cards linked to a single account simplifies the payment process by consolidating all expenditures into one bill.

This not only streamlines accounting but also improves financial control.

Streamlined work expenses

Utilising a credit card for work expenses eliminates the need for tedious expense forms and reimbursements to employees.

This can save considerable time and administrative effort.

Itemized statements

Credit cards provide itemised statements for each card, allowing you to monitor spending across the company, within departments, or by individual employees.

This fosters transparency and accountability in spending.

Simplified accounting

Using card statements instead of traditional receipts and paperwork makes accounting more straightforward.

These statements can be easily downloaded into specialist accounting software or Excel for further analysis and reporting.

Emergency Funding

A credit card can serve as a reliable source of emergency funds, providing immediate access to money when needed.

This can be particularly useful in unexpected situations or financial crunches.

Business credit cards are a financial tool available to various types of businesses, from sole traders to individuals managing the finances of larger corporations.

However, eligibility often depends on specific criteria set by the card provider.

Typically, your business needs to meet a minimum income requirement to qualify for a business credit card.

Furthermore, certain cards might be exclusive to specific types of companies.

Banks often tailor their product and service offerings based on the size of your business.

For instance, they may offer different business credit card options for:

• Start-up businesses
• Companies with a turnover of up to $1 million
• Companies with a turnover exceeding $1 million
• International businesses

To apply for a business credit card in Kenya, you must be at least 18 years old and reside in Kenya.

Additionally, your business should be registered in Kenya.

Some card providers also necessitate that you open a current account with them to access their business credit card services.