When we talk about credit card usage, we tend to think of paying at the grocery store, shopping online at that discount sale or swiping that piece of plastic at a restaurant. But as SmartBusiness reports, an often overlooked area for credit card usage is by the enterprise.
Many businesses are still tied to the old vendor invoice strategy: your company gets an invoice in the mail or by email. The invoice is approved. The check is cut. The check is mailed. All in all, this process could take 2 weeks or more to complete, depending on the business size. Just 4% of small businesses actively use business credit cards as a primary form of payment while 65% still use checks.
But credit cards help companies increase automation and efficiency by simplifying the payment cycle – which improves cash flow and as an added benefit, the use of such cards can also reduce the expenses incurred from paper. And when choosing a company credit card, look for benefits and perks such as frequent flyer miles, travel/auto insurance, and expense tracking reports.