We can receive a credit card not only as a private person, but also we can apply for it as an entrepreneur. Such a company credit card can be very helpful when we have a lot of shopping every day. Is it always a viable solution, however?
Thanks to a credit card, we can borrow fast loans for any expense. We do not have to apply for a loan every time, because we have already submitted it with the application for a credit card. This is when the bank checks our creditworthiness and shows what limit we can have.
A credit card for a company is undoubtedly a convenient solution, but it has its downsides, which we should remember about. Is it worth to apply for it?
Credit card for the company – advantages
Let’s start with the advantages that a business card brings with it. As we mentioned earlier, mainly thanks to the card, we can easily pay for various company expenses. Even if we do not have enough money on the account, we can pay for different orders that we need to run the business. Thanks to this, we do not risk losing financial liquidity.
The credit card can also be used in both regular stores and online orders, which allows us to easily buy what you need most – not only in Poland, but also in other countries where the card is the main method of payment for online purchases .
Using a loan from a credit card is also free. At a given date – usually up to about 50 days, the loan is not interest-bearing, so we do not have to worry about additional costs. If we exceed this deadline, then we will have to pay interest for each day.
It is also worth mentioning that a credit card is a good alternative to ordinary loans when you take them often. As we said earlier, we do not have to submit additional loan applications, so we save our time.
Credit card for the company – defects
However, we must not forget that the use of a credit card also has its drawbacks. First of all, it is worth pointing to the fixed costs associated with the used card. Although we do not have to pay interest for a loan by the card, each year we have to pay a fee for using such a payment – it is even several hundred zlotys. Some companies also apply other fees, such as the card issuing fee, the monthly fee for using the card, commissions. We will also pay when we want to change the card limits.
Let’s also remember that using a company card should be reasonable. When we are scratching with money, then it may turn out that we do not have enough funds to repay the card. This automatically means higher expenses, and can also affect the company’s reduced creditworthiness and undermine its financial stability.
In summary, credit card in business is a very helpful means of payment, but it is expensive. It is worth calculating whether using it is profitable for us. Sometimes it’s better to take one installment loan than to use your credit card all the time.
- Credit card for the company
- Corporate credit card
- Credit card costs