John Hinds, Commercial Product Manager at MasterCard UK and Ireland explains how business cards can help SMEs with a variety of SME Challenges
Business credit cards CAN HELP SME challenges
The first thing to say is that SMEs are diverse and due to the nature and structure of their businesses they have different needs, but they also share a number of common challenges.
If you look at the different segments that exist within the SME sector, you can look at new market entrants and start-ups, they typically have issues obtaining credit and finance. That’s a major problem for them.
If you look at other segments, such as your local skilled tradesmen, people like plumbers, builders, electricians, they have typically have issues in chasing late payments, receiving payments from customers and managing their working capital.
If you come and look at professionals working in the SME space such as lawyers, accountants or architects, they typically are very time sensitive, very busy people. Therefore they want products and services that can help drive efficiencies within their business.
Coming on to look at more established employers, people that maybe have between 10 – 50 employees. What they want to do is manage, control, track their employee spend whilst also maintaining flexibility and security within their options around payments. They also want to have an effective business travel policy that they can manage effectively for their employees.
So you’ve got a lot of diversity there, a lot of different types of SMEs. However, regardless of the size or shape of the SME they all have common challenges and business credit and debit cards that have been created specifically for small and medium enterprises can help them overcome the common challenges they face with respect to working capital and business administration
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