Have you just started a business and are wondering how are you going to make ends meet? All the extra expenses of owning a small business can add up over time. There are many ways to earn rewards from business expenses, from using a credit card to shopping at certain stores.
While many people in small business are opposed to credit cards with typically high-interest rates and penalties for late payments, most enjoy the freedom they provide. However, if you are aware of the incentives and pitfalls of having a credit card you can make an informed decision on whether or not to get one. With many factors to weigh up when going down the credit card route, here is a more detailed explanation by The Simple Dollar.
There are downsides for business owners to consider, including merchant fees and consumer fees, which can form a large portion of the overall purchase. However, the end goal often justifies the means as earning a sale from a credit card is better than no sale at all.
Some small businesses even raise their fees and pass this onto consumers through fees. With an increasingly savvy consumer base this can be a risky practice. For more information on this topic, take a few moments to read NerdWallet.
On the other hand, there are numerous benefits to having a credit card:
- Reduced dependency on cash transactions is a bonus.
- Building your businesses credit history is very important for future plans and expansion.
- Accessing the cashback feature from using your credit card is great, but there is a limit to the earning potential depending on the choice of card.
- Shopping at certain shops or restaurants can earn you money or rewards. These rewards are often reserved for specific items or deals and cannot be personalised to your situation.
Furthermore, these rewards are often restricted to certain times placing onus on the card owner to know the rules and regulations associated with your credit card. Investopedia has published more in depth details.
As a general rule, the more a customer or small business uses a credit card, the harder the card works for you by earning more rewards. With a Credit card from Yorkshire Bank, you can earn discounts and incentives by spending on certain cards, or through purchasing business essentials in certain stores. You work hard to run your business and it could be time to start earning extra rewards on all the staple business items!