Why You Should Switch Business Travel Payments to a Credit Card?
Traditionally most businesses establish an account with a travel management company such as Meon Valley Travel to arrange and pay for their business travel. This is a convenient and effective way to manage your business travel transactions and get management information from your transactions. But by getting your travel management company to pay for your travel and hotels by credit card you can save and effectively earn money through your travel.
There are several benefits from switching payment to a credit card.
Dispute Resolution and Extra Security
A credit card provides you with extra protection with its built-in dispute resolution mechanism. This means that you can promptly put a halt on any payment that you are unhappy with, until your dispute is resolved.
Furthermore, a credit card will insure you against loss incurred when an airline fails to provide the service you have paid for. The recent demise of FlyBe should serve as a warning that no flights are totally secure. Rather than wrangling with the airline for a refund, let the credit card company remove all your concerns, and deposit the lost money back into your account.
Improve Your Cash Flow
The third reason for switching your payment to a credit card is that it will allow you extra time for settling any bills. Depending on when you schedule your flight, you can gain up to an extra 80 days before you have to pay for your flight without incurring any costly credit card fees.
We all know how important cash flow can be to businesses, especially small ones. Delaying payment on all your business flights could be the difference between survival and going bust, especially in these times of great economic uncertainty.
Save Money on Your Flights and Hotels
Finally, saving the best to last, paying on a credit card can save you money. A recent case study of transactions made by one of Meon Valley Travel’s clients has demonstrated that through maximising reward points redeemed against business travel, the client saved £660,000 in free flights and hotels using BA Avios and BA business reward points. The client saved between 6% and 8% on its annual travel spend, as well as benefitting from up to 80 days interest-free credit on its payment terms.
These savings were secured by using an American Express BA Corporate Card Plus, but the underlying benefit of using a credit card to pay for your business travel and hotel expenditure applies to any card you might use, corporate or personal, debit or credit.
Claim Back Your VAT
In addition, through using a travel management company such as Meon Valley Travel to handle your flight and hotel bookings rather than going through a ‘bed bank’ such as Expedia or Booking.com you can further benefit by claiming back the 20% VAT charged on your booking, something that is not applicable if you use a ‘bed bank’.
So, using a credit card is secure, hassle-free, helps with your cash flow and saves you money. Where’s the catch? There is none. It’s also simple to do. Just contact one of our professional business travel advisors today and we will start saving you money now.