Thomas Harris, European Head of Commercial Products at MasterCard discusses the added benefits SMEs can get from business debit & credit cards
Business credit cards offer added SME benefits
There are several benefits for SMEs using business debit and credit cards, particularly compared to cash and cheques. The data that’s provided with business debit and credit cards provide a small business with the information they need to manage their daily cash flow position effectively.
Connected to that data, business debit and credit cards allow a business to separate personal from business expenses which enables to reclaim VAT eligible expenses, which is money they can reinvest back in their business. Business credit cards specifically provide a business with incremental float. What that means is you can pay your supplier on time or potentially earlier than you would have done and still not have the pay the bank for up to 54 days, which allows you to make investment decisions over the longer term.
Finally, business debit and credit cards are designed specifically for businesses to have business sized credit lines, a variety of value added services included business specific discounts, access to airport and business lounges and for larger businesses controls that give business owners the confidence to delegate employee spending.
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