How to choose a business credit card?
With a growing offering of financial products, it is important to stop and study each one to determine which is the best option for your business.
By: Armando Herrera, General Manager Cards at Konfío.
Obtaining a corporate credit card offers different advantages for your business such as, for example, separating personal finances from those of the company, obtaining immediate liquidity, documenting deductible expenses and generating credit history for your company, which can help in the future if you are looking to obtain a business loan.
With a growing offering of financial products, it is important to stop and study each one to determine which is the best option for your business. Some of the main factors to consider are:
- Cost per opening
- Credit limit
- Minimum pay
- Protection and coverage.
However, there are other types of benefits that you should take into account, especially considering the daily use of your business plastic, such as the experience with the customer. In traditional banking you will find an important variety of cards and plans, but we know that bureaucratic processes can be, yes, very bureaucratic. From the application process to customer service for doubts or complaints, these are usually very tedious processes.
Today, modern technology companies have arrived on the market and some of them offer you to carry out all these procedures online, in addition to providing 24/7 customer service through an application, without having to invest valuable time on a telephone line.
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The flexibility of your line of credit is also important, as a businesswoman or businessman, you know that many times you are in charge of businesses with very particular characteristics and banks tend to pigeonhole their clients into very rigid categories, look for an option that is versatile and adapt to your needs from day one.
Another very important factor is security, check what tools they offer you as protection against fraudulent operations or control of additional cards. This is particularly important for businesses that need more than one card, making it easier to control employee movements, especially on trips and other regular purchases. For these cases, you may be interested in more modern options that allow you to activate or deactivate your cards from an application, or impose individual limits per card, as well as configure alerts for unusual charges or purchases.
And speaking of travel, don't forget international coverage, if the card is going to be used abroad it is essential to have a backup to carry out operations outside of Mexico. In addition to the protection that your provider can offer you, we recommend that you create an internal policy on the use of the corporate card to have better control, you can even assign a different line of credit to each of the corporate cards.
Finally, if you need additional cards, take into account that you do not always have to pay for the extensions, some companies offer up to a certain number of free cards while others will charge you for each one.
Finally, a benefit that may not be essential, but is worth it, is customization. Think about the possibility of having a card with the image of your company not only as an emotional benefit- Who does not like personalized products? - If not as the type of attention that the financial institution can offer you, if they allow you personalize the card it is very likely that the attention they will give you will be like this, more particular.