The majority of UK small to medium-sized businesses are using their corporate credit cards to buy goods and services for their company, a new survey has shown.
According to the Expense Evolution survey, conducted on behalf of American Express, two thirds of employees surveyed had bought goods and services for their businesses on corporate cards.
The survey revealed a number of factors behind the culture change, with 70% of those questioned stating ease of use as the primary benefit in using corporate cards over their invoice process.
The speed at which credit card transactions can take place and the fact that they offer a one step process came a close second, with 59% of respondents saying these were the main reasons behind their switch to credit cards.
Overall, company card spending increased among small to medium-sized business, with only 3% of the companies surveyed reporting a decline in spending – most notably among larger businesses.
Employee travel and corporate hospitality still represent the most significant areas of company credit card spend (89% and 70% respectively), but categories such as general employee expenses (67%), goods and services for the business (67%), ad hoc items for the business (66%) and goods and services for resale (14%) also figured prominently.
Commenting on the survey, head of corporate card UK & Benelux American Express Paul Abbott, said: “A growing number of UK businesses are empowering employees through the use of corporate cards. While many realise the benefits in terms of creating flexibility and simplifying their payment and accounting processes, it is also fundamental that businesses use their cards to drive all possible savings to the bottom line, through rigorous supplier negotiations.”
© Crimson Business Ltd. 2006
