How a business credit card can help you attract more customers

You might think of a business credit card as a way to cover your costs. But it has much more potential than that and can act as a way to help grow your customer base. With perks like cashback and more flexibility, you could find yourself with extra funds to put towards attracting new faces. Here, we look at how having a business credit card has the potential to help you win more customers.

More money to invest in your business

One of the biggest perks of some business credit cards is cashback on your spending. With a cashback card, you’re earning money back on purchases you’d be making anyway. For example, the Funding Circle Cashback business credit card offers 2% cashback on all spending for the first six months, up to 2,000. After that, you’ll get 1% cashback on everything you buy.

So how can this help you attract more customers? Simple. Cashback reduces your overall expenses by lowering future credit card bills. This gives you a bit more financial flexibility, which could use on: 

• Boosting your marketing budget: Put the extra funds towards advertising or promotional materials to reach new customers.
• Upgrading your equipment: Invest in new tools or technology subscriptions that improve your products or services and make your business more appealing to potential customers while doing so.
• Enhancing your premises: Use the cashback to spruce up your shop front or office, creating a more inviting space for customers or a better working environment for the team. 

All of these aspects have a knock-on effect in trying to win more customers, be it tech subscriptions that streamline your time so you can spend more of it attracting new customers, or marketing that allows you to expand your reach. 

Expand your reach with travel rewards

Talking of expanding your reach, if your business involves regular travel, a card with travel rewards can make all the difference. These perks can help you save money on business trips, allowing you to meet potential customers face-to-face without breaking the bank. You might get:

• Air miles or points for flights
• Hotel discounts or free nights
• Car rental perks

Saving on travel costs may help you afford to attend more industry events, conferences or trade shows and get your networking cap on. These are great opportunities to talk to and find new customers.

Open doors for your business

Using a business credit card responsibly helps build your business credit score. A strong credit score can open up more opportunities for your business, including:

• Better terms from suppliers
• Lower interest rates on loans
• Increased creditworthiness in the eyes of potential partners or customers

All of these factors can indirectly help you attract and retain more customers by allowing you to offer competitive prices and reliable service. When your credit is good, there’s usually a bit more wiggle room to make decisions, and this can lead to an uptick in your customer base. 

Know where your money’s going

Many business credit cards allow you to track and categorise your spending, an insight into your finances that can help you:

• Identify areas where you’re overspending (if any)
• Spot opportunities to redirect the funds towards customer acquisition
• Make decisions about where to invest in your business

Managing your money more effectively means you’ll have more understanding about your setup and potential resources to put towards growth and attracting new customers.

Improved cash flow management

Business credit cards can offer you more flexibility in managing your cash flow. For instance, FlexiPay from Funding Circle allows you to pay later by spreading the cost of purchases over 1, 3, 6, 9 or 12 months. It can be particularly helpful for:

• Bulk purchases: Buy inventory at a discount and spread the cost over time, giving your business what it needs to thrive and build on its customer base
• Seasonal businesses: Cover expenses during slower periods
• Unexpected opportunities: Take advantage of chances to grow your business without worrying about immediate cash flow holding you back. 

With a smoothed-out cash flow, you have the resources in place to provide top-notch service to your customers, even during leaner times. 

Protection and insurance

Many business credit cards come with built-in protections and insurance. These might include:

• Purchase protection
• Extended warranties
• Travel insurance
• Fraud protection

Such perks can give you peace of mind and potentially save you money. More importantly, they allow you to focus on serving your customers instead of worrying about potential mishaps. Sometimes it’s the little things that can make a real difference, even if it’s not necessarily an obvious perk to begin with. 

Employee cards

If you have staff, providing them with employee cards can be a smart move. It allows them to make necessary purchases without hassle, which can lead to Improved efficiency. Or perhaps it helps them provide better customer service and gives them a sense of ownership.

Happy, efficient employees are more likely to provide excellent service, which in turn, attracts and retains customers.

Making the most of your business credit card

To really leverage your business credit card to attract more customers, consider these tips:

• Choose the right business card: Look for a card with rewards that align with your business spending and goals.
• Use it for all eligible business expenses: The more you use your card, the more rewards you’ll earn.
• Pay your balance in full each month: Avoid interest charges and build a positive credit history. With the Funding Circle cashback card, for instance, you get up to 42 days interest-free. 
• Review your statements regularly: Keep an eye on your spending and look for opportunities to optimise.
• Take advantage of all card benefits: Many cards offer perks beyond rewards, like concierge services or airport lounge access, which could impress potential clients.
• Use rewards strategically: Consider how you can best use your cashback or points to grow your business and attract customers.
• Be aware of fees: Make sure the benefits of the card outweigh any annual fees or other charges. FlexiPay from Funding Circle, for example, offers one flat fee on each purchase so it’s easier to keep track of costs. 

Summing up: Doing more with a business credit card

A business credit card can help with attracting and retaining customers. By providing you with extra funds through cashback, helping you manage your finances more effectively and offering valuable perks and protections, the right card can give your business the edge it needs to thrive and grow. 

Whether you’re just starting out or looking to expand, a well-chosen business credit card could be the boost your business needs.

02/10/24: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.