Kick Start your Business with the Best Credit Card

New ventures require not only substantial capital to start their business but also need considerable working capital to conduct their day-to-day operations smoothly. As such, the government, as well as private lenders, are offering an array of funding options such as business credit cards in India to encourage more individuals to help meet the funding requirements of their enterprises.

A business credit card is issued to small or medium-sized business owners whose turnover is not more Rs.10 crore in a financial year. This convenient payment tool enables business owners and entrepreneurs to avail necessary financing quickly for their venture. These cards can also help in building a positive credit history, which can make it easier for an organisation to avail loans and advances in the future. 

However, since most lending Institutions in India offer business credit cards or premium cards that suitably serve business funding needs, applicants should opt for extensive research before applying for one. Here are some of the credit card features and benefits that they should look out for to give their business an initial financial boost.

  • Easy access to funds in a lump sum

A new business requires a considerable amount of funds to ensure seamless operation. Accordingly, the best business credit card in India should allow individuals to opt for a lump sum funding via an emergency loan against the available credit limit for an interest-free period of up to 90 days. Moreover, one should also be able to withdraw funds from ATMs as and when required without incurring any interest for up to 50 days and at nominal processing fees.

  • Option for EMI conversion

New businesses usually do not have sufficient disposable funds to purchase inventory and machinery. Applicants should, therefore, consider applying for business credit cards such as the RBL Bank SuperCard, which allow them to purchase big-ticket items on credit and deferring the payment by opting for affordable EMIs. Thus, with such a business credit card, new enterprises and start-ups can adequately maintain their inventory or other such purchases which facilitate smooth operation without sustaining any financial strain.

  • Attractive reward points

One should opt for business credit cards in India that offer reward points with every purchase. These reward points can be redeemed to avail attractive discounts, cashback, and gift vouchers on purchasing from partner stores or merchants. Such a credit card will enable them to save a substantial amount of money, which can then be used to finance other aspects of the business. 

  • Made for Convenience

Being a business person in your respective industry, if you are looking for the most convenient option in business financing, you should choose the business credit card. Either it’s about cash withdrawal or fund access to make purchases, business credit cards can arrange the fund you very quickly than other options you are using like a cheque book or another.

Whenever your business will be in short of money, your business credit card can be a financial cushion for business owners for cash withdrawals.

  • Qualification is Easier

If a business owner comes with a credit history which is not established in a good manner, they can easily qualify for a fund with a business credit card. Not only this, the business credit card is much more secure than a bank loan and line of credit. 

  • Employee Expenses Streamlined

Getting a business credit card can be beneficial in managing your business process in a smarter way. If your organisation is offering expenses to your employees, then the whole process could be easily tracked. Providing business cards to your employees will help you to make all the transactions safe and fair to you. You will receive one bill for all business expenses that employees are spending every month.   

  • Travel Protection

Your business card makes sure you have travel protection and business tour safety. A business card holder can opt for numerous travel and related purchase protection. The travel protection may have a sum of safety features like foreign transaction fees, extended warranty, mobile phone protection, insurance or  trip cancellation coverage as well.

  • Security features –

Start-ups and new businesses may need to carry out online transactions as well. Hence, they should look for business credit cards in India which offer enhanced protection against fraudulent online activities and come with security features like ‘in-hand security’ and ‘zero-fraud liability cover’. In addition to that, cardholders should also know of other ways to protect their credit card from being hacked.

Eligibility parameters and documentation

Apart from the features and benefits, there are other important things to know before applying for a business credit card, such as the eligibility parameters and documents required. Even though these parameters may vary for each lending institution, there are some essential criteria that every applicant must meet. These are as follows – 

  • Applicants need to maintain a CIBIL score of 750 or above.
  • They must be within 25 – 65 years of age.
  • They should not have any history of repayment defaults.
  • Applicants must be citizens of India.

Financial institutions also provide pre-approved offers for a hassle-free credit card application procedure. Such offers can also be availed on other unsecured credit products like business loans, personal loans, etc. You can check your pre-approved offer by providing nominal details like your name and contact information. 

Applicants are required to submit several essential documents during the application procedure, which are listed below – 

  • KYC documents like Aadhaar, voter ID card, PAN, or any other officially valid documents.
  • Proof of income like Form 16, bank account statements, salary slips, income tax returns, etc.

Nevertheless, to make the most of the features and benefits mentioned above, cardholders must responsibly use their business credit card, such as paying off their credit card bill in time every month.

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