Managing your business expenses can be tough. So, if you’re looking for a straightforward way to keep track of your company expenditure then charge cards for business can be an excellent solution.
But how do business charge cards work? What should you look for when you compare business charge cards? And what benefits do the best charge cards for business use share?
How do business charge cards work?
Charge cards work in a similar way to credit cards. You can use them to buy goods and services on the High Street and online and you will receive a bill every month detailing the money that you have spent on the card.
However, the main difference between business credit cards and charge cards for business is that you have to pay your charge card bill in full every month.
While you can pay part of your credit card bill every month and retain a balance you can’t do this with a charge card.
The main advantage of a business charge card is that it helps you to keep control of your company’s expenses.
You get an itemised bill and make one payment a month rather than paying for goods and services on an ad hoc basis.
What to look for when you undertake a business charge cards comparison
Not all charge cards are the same so it’s important that you compare business charge cards before you apply. When undertaking a business charge cards comparison make sure you consider:
- Fees and charges
- Whether they are charge cards for use abroad
- The type of card
- Whether the providers offer business charge cards rewards schemes
Fees and charges on charge cards for business vary from provider to provider. As well as an annual fee you may also pay charges for cash advances and for using the card overseas.
If you travel and want to put expenses on your card you should also ensure that you can use your chosen business charge card abroad.
You may also want to consider the type of card that a provider offers. The best charge cards for business use often carry the American Express logo although it is also possible to obtain a Visa charge card. Both will be accepted worldwide but in the UK Visa will still be the more widely accepted option.
Finally, many providers offer business charge cards rewards schemes. These programmes allow you to earn points every time you use your card. You can then redeem these points for a range of benefits including gifts, vouchers and free flights.
