Are Corporate Credit Cards Affecting Your Cash Flow?

 

Corporate credit cards are often the go-to tool for making all company-related purchases. Used in stores or online, they offer convenience with immediate access to funds. However, beneath the surface, many companies find that relying solely on these cards constantly swipes their cash flow, leading to larger financial challenges.

As of June 2024, SMEs owed approximately RM438.089 million in credit card loans, highlighting a growing concern for business owners. While it’s easy to spend by using a line of credit, it’s more prudent to avoid accumulating debt that could strain future cash flow and financial stability.


Managing cash flow is more critical than ever in today’s fast-paced business environment. Yet, many companies unknowingly sabotage their financial health with unchecked corporate credit card usage.

 

Underlying risks of casual card spend

Traditionally, using corporate credit cards follows a “pay first, figure it out later” approach, which isn’t ideal for a clear financial oversight of business finances.  When card payments lack tracking or controls, they eat away at the business’s cash flow, especially when interest and fees start to accumulate.

Hidden costs of manual claims processes with card payments

Manual pay-and-claim processes burden finance teams and prevent real-time expense visibility. In addition to that, delayed reimbursements disrupt cash flow. As these inefficiencies build up, they add unnecessary strain on business operations. This leads to rising operational costs and overlooked strategic initiatives. Adopting a digital financial solution beyond a corporate expense card will provide spending limits, expense tracking in real time, automated reporting, and better cash flow protection.

 

Smarter corporate cards for your business 

Instead of relying solely on traditional corporate credit cards that can burden your cash flow, Merchantrade Money Biz offers a better alternative. The corporate expense card solution equips businesses with Visa Business Prepaid Cards with custom spending controls to spend in over 20 major currencies.

Coupled with the cards are a multi-currency eWallet and expense management portal with essential tools to manage expenses more efficiently, reduce manual processes, and gain clearer control over cash flow.

 

Rethinking corporate expense cards for healthier finances

Addressing cash flow issues requires more than a switching of cards. It requires rethinking how your company handles its expenses. Corporate credit cards, while convenient, are no longer the most effective tool for many growing businesses. By transitioning to Merchantrade Money Biz, companies can better control their expenditures, protect their cash flow, and redirect their focus toward strategic growth.

Rethink your approach to corporate expense management. Opt for clarity, control, and flexibility with Merchantrade Money Biz.



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