Personal credit cards have become ubiquitous among consumers, and electronic payment is now a standard in business finance. Yet many U.S. companies continue to pay their bills the old-fashioned way — by writing checks. While some companies issue cards to their employees for travel and entertainment expenses, many of them are still not taking advantage of business credit cards to pay utilities, purchase supplies and settle accounts payable.
Because business credit cards are an efficient payment tool for companies large and small, they should be an integral part of any cash management strategy. Companies can streamline their cash flow and lower costs through improved efficiencies, while earning valuable rewards and discounts and protecting themselves through banks’ rigorous security controls. Early-stage companies can also use business credit cards as a first line of credit, while large corporations can integrate credit card data into their accounting systems to analyze spending patterns and negotiate better terms with high-volume suppliers.
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