Owners of small businesses have a lot of responsibilities to manage. Considering finances is one of them. To solve the financial requirement of a business, it is good to study and apply for the best credit cards for small businesses in Singapore. These credit cards can be a major asset for such owners. There are a plethora of options available in the market for small business credit cards. Make sure you make detailed study on credit cards and the facilities available by the company.
How are Aspire credit cards helpful for your small business?
Aspire offers an easy, fast, and transparent approval of working capital. This can be used to grow your business, by purchasing the immediate requirements. When you are out of cash and you need certain equipment for the proper functioning of your business operation, these credit cards are useful. But there are some eligibility criteria to apply for Aspire corporate credit cards, such as:
- The business must be incorporated in Singapore.
- It must conduct business operations for a minimum of 6 months.
- The applicant for credit cards must be a director.
You need to apply via online mode and there is no paperwork involved in the process. The working capital gets approved within seven business days of submitting the capital application. There is no obligation to draw down the funds immediately. And, you need to pay interest only on the funds you have drawn. You can save on your interest if you repay the credit amount as early as possible.
The processing fee on the amount withdrawn is 1-4% and the rate of interest on the amount is 1-3.9%. Therefore, Aspire credit cards are one of the best credit cards for small businesses.
Documents to be provided with the application are:
- Past six months bank statements of all corporate bank accounts.
- The front and back copy of NRIC or the employment pass, and a copy of the passport for both the director and all guarantors.
- Director and all the guarantors need to produce their CBS report that has at least 3 months validity.
Benefits of using credit cards for small businesses
Credit cards can help in increasing your savings and expense management. Here are some other benefits of using credit cards for small businesses,
- Purchase equipment without worrying about cash
Credit cards for businesses provide a line of credits, to begin with purchasing business necessities from supplies to equipment. You don't need to worry about cash availability to avoid these purchases. Business owners who are bound to spend whatever they want, it is hard to run an organization without a credit card.
Several business credit cards offer interest-free financing. This means you can make purchases over time without paying interest. For example, the Blue Business Plus Credit Card from American Express incurs 0% interest on the purchase amount for the first 12 months.
- Easy reimbursement of Employee spendings
It becomes difficult for the owners to reimburse employees' payments for business purposes with personal cards. It is better to go with a business credit card to manage the expense process. Whenever an employee makes a business expense, you receive a bill. Similarly, for all the expenses made by any employee of your company, for business, you receive a bill every month.
It allows you to set a limitation of expense on the credit cards.
- Earn cash back or rewards
Several business cards come with reward programs. For example, Aspire corporate cards give you a chance of earning cashback. You can 1% cash back on all digital spendings and can access rewards over $50K from their partners.
- Separates business expenses from personal.
These credit cards for small businesses separate your business expenses from personal expenses. They can monitor the cash flow of a business and make immediate repayments without delay.
Conclusion
While looking for the best credit cards for small businesses, make sure you know how to use them. These cards are good for short time debts, but they should not be used for long-term financial requirements. If you won't be able to repay in a few months you will be liable to a penalty.
It's not advisable to carry your corporate credit cards daily. As you may mix your corporate and personal expenses, leading to greater problems while tax filing.
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Financial Middle Class is a business and finance blog, which provides targeted and unbiased recommendations and advice to help the middle-class make smart personal finance decisions.
