Over half small businesses “miss out” on rewards
More than £7.6bn of spending is unrewarded, finds research
More than half of small British businesses are losing out on an estimated £7.6bn worth of credit and charge card rewards, new research claims.
Fifty-four per cent of UK small business owners make purchases using cash, cheques and cards that do not offer any rewards according to the latest American Express Small Business Barometer.
With each small business spending an average of nearly £12,000 per year for overheads such as supplier payments, equipment, stock and travel, the research claims the majority could be missing out on business-boosting benefits for which rewards could be redeemed, such as office equipment, supplies and complimentary flights.
For the 37% of small business owners who have switched to a rewards card the key benefits cited include ‘making savings on day-to-day business costs’ (49%), ‘enabling me to boost my spending power (46%) and for ‘treating my staff more regularly and to improve motivation’ (39%).
Main benefits of rewards card cited by small business scheme members
The Barometer also questioned respondents about the challenges they face running a small business. The key issue for 40% is ‘managing finances and ensuring my business is profitable’. In their quest for effective cash flow management, almost half (46%) say they are ‘enforcing tight payment terms for customers’ to maximise cash flow within their business, and over a third (39%) are focusing on ‘careful inventory management’.