How to Use a Business Credit Card to Expand your Business

A Man In A Grey T Shirt Types On His Laptop And Holds A Black Capital On Tap Card

Growing your small business is like nurturing a plant – it needs the right resources to thrive. One essential tool in your business toolbox is a credit card designed just for businesses. It's not just a piece of plastic; it's a key to unlocking opportunities for expansion. Let's dive into how a business credit card from Capital on Tap can be your small business growth partner. 

Expand your inventory and supply chain

Running a business often means juggling inventory and supply chain needs. As you expand, you’ll need to purchase more and more stock. Here's how your business credit card can help:

Bulk purchases made easy

You run a popular bakery, your signature chocolate brownies are flying off the shelves, and you’re looking to expand into postal delivery boxes. To keep up with demand, you need a significant amount of inventory – flour, sugar, and, of course, chocolate chunks. A business credit card provides the working capital you need to make bulk purchases, ensuring you never face a shortage of essential ingredients when you expand while keeping some cash on hand available.

Seizing opportunities

Sometimes, suppliers offer discounts for bulk purchases. With your business credit card, you can seize these opportunities, buying in larger quantities at a lower cost per unit. This not only keeps your shelves stocked but also improves your profit margins, contributing to the financial health of your business.

Supporting seasonal demands

During peak seasons, such as Christmas for toy shops or summer for ice cream parlours, the demand for your product might skyrocket. Your business credit card provides the flexibility to increase your inventory to meet seasonal demands, allowing you to capitalise on festive occasions and maximise profits.

Upgrading equipment

If your business provides a service, such as landscape gardening or plumbing, and relies on specialised equipment rather than boxes of stock, a business credit card can help finance your equipment upgrades. This not only enhances the efficiency of your operations but also helps position your company as a leader in the industry as it shows you're committed to using the best tools available.

Seamless transportation solutions

Whether it's moving stock or transporting your team to job sites, transportation is a crucial link in your business’ supply chain. Your business credit card covers these logistical expenses, ensuring that your team and equipment move seamlessly from one project to the next. This reliability not only satisfies your clients but also allows you to expand and serve a wider audience.

When you’re a Capital on Tap Business Rewards customer, you can redeem the cashback you’ve earned for Avios points to enjoy flights and upgrades, car hire, and hotel stays. So, not only does your credit card simplify your logistics, but it also adds a rewarding layer to your business expenses, contributing to overall growth and success.

Enhance marketing and promotional efforts

Effective marketing is like turning up the volume on your business’ success story.  When you want to expand your business, your business credit card becomes the amplifier. Here are additional ways your credit card can enhance your marketing efforts:

Diversifying your marketing channels

Reaching your audience requires a multi-channel approach. Your business credit card can facilitate diversification by funding marketing efforts across various platforms:

  • Online ad campaigns: Invest in targeted online advertising to capture the attention of potential customers scrolling through social media or browsing the web. 
  • Print materials: Create eye-catching brochures, flyers, or posters to distribute in your local community, showcasing your products or services.

Whether you’re investing in printed flyers or boosting a Facebook post, using your business credit card to cover the printing costs or the paid ad fee, centralising your advertising expenses in one place simplifies your financial management, effortlessly earns you rewards, and allows you to track your expenditure.

Branding collaborations

Collaborations with other businesses can be a great way to expand your brand:

  • Sponsorship opportunities: Use your business credit card to support local events or sports teams by sponsoring them. This enhances your community presence and associates your brand with positive local experiences.
  • Cross-promotions: Partner with complementary businesses to cross-promote each other. For instance, if you own a fitness studio, collaborate with a healthy cafe for joint promotions. Use your business credit card to fund this venture.

Digital marketing investments

A strong online presence isn't just about being seen; it's about growing your business. As more people discover your website, you open doors to new customers, potential partnerships, and overall business expansion.

  • SEO and content marketing: Use your business credit card to invest in search engine optimisation (SEO) services to enhance your website's visibility on search engines. Create engaging content that not only attracts visitors but also establishes your business as an authority in your industry.
  • Email marketing campaigns: Build and engage with your customer base through targeted email campaigns. Use your business credit card to invest in email marketing software and create compelling newsletters.

Empower your team

Move your business forward with a strong and motivated team. Use your business credit card to help your employees and contribute to your company’s growth.

  • Business travel: When expanding your business' reach, your business credit card helps by covering business travel costs, allowing your team to meet clients in person. This strengthens current partnerships and opens the door to new opportunities, pushing your business to explore new markets and grow. With a Capital on Tap Business Credit Card, you'll also earn rewards on all your travel costs which you can reinvest in your business' expansion.
  • Employee expenses: Many business credit cards offer employee cards. Capital on Tap offers free cards for all your employees to simplify how you track expenses. This streamlined process isn't just about managing money; it's about making your team's job easier. With the power to make the purchases they need, your team can focus on the tasks that contribute to expanding your business.

Build business creditworthiness

Your business credit score is the number that represents how lending institutions view your creditworthiness and illustrates the likelihood of obtaining funding for your business. The higher your score, the higher the chance you’ll repay your debt so lenders are likely to give your business a higher credit limit. This extra financial room can be a game-changer when you're looking to expand your business.

Improve your cash flow

Managing your business’ cash flow can be tricky, especially when you're expanding. That's where a business credit card comes in handy. It gives you the flexibility to time your payments according to your business' needs, especially during slow months or unexpected expenses. This smart strategy ensures your business always has the financial backup it requires precisely when it's needed.

Using a business credit card also makes it easier to keep an eye on your cash flow. The detailed statements and transaction records they provide allow you to understand your spending habits better. You can spot areas where you can save money and make informed decisions to boost overall financial health.

Maximise your credit card rewards

Business credit cards often come with various rewards and benefits, such as cashback on purchases, travel perks, and discounts. This makes it an appealing choice for businesses looking to gain more from their everyday spending to reinvest into their growth.

With Capital on Tap’s rewards programme, you can enjoy:

  • Unlimited 1% cashback
  • Exclusive offers 
  • Gift cards
  • Avios points

We’ve handpicked these perks for small business owners, ensuring you get more out of every pound you spend.

The bottom line 

A business credit card is the perfect tool to help expand your business. Whether you need to make bulk purchases, upgrade equipment, amp up your marketing, or empower your team, it has you covered. The Capital on Tap Business Credit Card also streamlines your finances and provides valuable rewards like cash back and exclusive offers. It's more than just a card; it's a propeller for your business’ expansion.

This does not constitute financial advice. If you want to understand business expansion in detail, you should speak to your financial advisor or accountant.

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