According to figures from the National Institute of Statistics and Geography (INEGI), in Mexico there are about 4.2 million economic units, of which 99.8% are small and medium-sized companies (SMEs), which contribute 42% of the Gross Domestic Product (GDP) and they generate 78% of employment.
Small and medium-sized entrepreneurs often make the mistake of using their personal credit cards to manage their business expenses, such as paying suppliers, purchasing supplies, and even paying their payroll.
Business credit cards can be corporate or associated with a credit. Photo: Pixabay.
In this regard, the Coru.com platform considers that entrepreneurs should not use their own credit cards to cover business expenses for two reasons: the transparency of the company is affected and personal funds may be depleted, if this were the case they would be impossible to solve any personal emergency.
Ideally, small and medium-sized entrepreneurs have business cards, issued by banks and whose design is conducive to managing the expenses of SMEs.
There are two types of business cards:
The card associated with a credit. The bank gives it to the small or medium-sized businessman when it gives him financing for the business, along with the card he can also give him a checkbook and access to electronic banking. The plastic is linked to the amount and conditions of the credit line. With the card, the client can have the loan resources. Corporate card. It is a plastic guaranteed by the capital of the company’s bank account, it works like a debit card and is ideal for managing expenses such as per diem, travel, representation or purchases.
The financial services comparator Coru.com provides guidance on the three banks in Mexico that offer business cards for SMEs: BBVA Bancomer, your business card; HSBC HSBC Fusión, and Afirme, the Business Credit Card Afirme.
The advantages of business credit cards are:
They offer a better interest rate for corporate expenses, they work as a debit plastic for services and supplies. They allow you to have cash at ATMs, take advantage of discounts, make monthly payments without interest and other promotions. They have insurance on purchases. The account holder can have several plastics and each one reports the account statement to the holder. They help to clarify the expenses that are made in a company.
Tax deductible business expenses must be made by electronic means, with the corporate card that requirement is covered.
More information of interest can be found in the Credits Section.