Having a company credit card is quite advantageous for entrepreneurs and small business owners for many different reasons. An initial benefit of a business credit card is that it extends a line of credit that business owners can utilise to increase their cash flow. Some cards even provide 0% APR for a brief period.
The usage of company credit cards also significantly simplifies accounting for expenditures, largely because each purchase made by the business owner and their staff will be thoroughly detailed on their account statement each month.
Other, less well-known benefits do exist, too, and for the proper business owner, they can be extremely lucrative. To find the best fit, compare business credit cards and look for those that provide some (or all) of the following.
No-cost employee cards
A big benefit of many company credit cards is that you can distribute cards to every employee without paying extra fees. Capital One Spark Miles for Business is one illustration. You’ll spend less time reimbursing employees for business expenses they incurred themselves if every employee has a credit card. Each month, you’ll receive a detailed accounting of all the purchases made by each employee on your account statement.
You may also benefit from earning cash back or other benefits on all of your business expenses rather than just some by giving trusted personnel their credit card. Also, keep in mind that any benefits earned by employees are transferred to the principal cardholder’s account and may be utilised in any way the business owner sees fit.
A few business credit cards, like the Capital One Spark Cash Select, also provide comprehensive yearly reporting on your business costs. You can easily transfer your spending data into numerous software applications, like Quicken, QuickBooks, and Excel, using this small-business credit card. Similar interfaces with applications like Xero, FreeAgent, Quickbooks, and others are promised by WebBank’s new Capital on Tap Business Credit Card.
As opposed to manually entering such information, having a mechanism to automatically import your business purchases into the software will save you a tonne of time. Additionally, you are less likely to make mistakes and experience other accounting problems if your credit card and accounting software can automatically sync.
Discounts on software and services
Some company credit cards additionally provide annual credits for particular software programmes or reductions on specific services. The finest illustration is the American Express Business Platinum Card®, which provides the following benefits and savings:
- Annual Dell Technologies statement credit of up to $400
- Statement credits of up to $360 are available for Indeed’s hiring and recruiting services.
- Annual statement credits of up to $150 for purchases done with Adobe
- Credits for wireless phone service of up to $120 per year
Please take note that cardholders who apply for this card and pay the yearly fee will automatically receive these perks. Earning rewards for the software and services you already pay for is another related benefit. For instance, the American Express® Business Gold Card offers 4X points on up to $150,000 annually in the two categories where your company spends the most money per billing cycle. Advertising (bought in the US to advertise your company online, on TV, or radio), US shipping fees, US computer software, hardware, and cloud data purchases made directly from specific providers, and more fall under these categories.
A broken or stolen piece of machinery, be it a laptop or a sewing machine, can stop business operations for many small-business owners. Additionally, you might not be able to buy a replacement if the money is tight. However, did you know that business credit cards frequently offer a perk that can be useful in such a circumstance?
Since cardholders of the Ink Business Unlimited® Credit Card automatically receive purchase protection of up to $10,000 per claim and $50,000 per account annually, it serves as a strong example in this category. This coverage covers the majority of cases of damage or theft and is valid for up to 120 days after the afflicted item’s purchase date.
advantages and rewards of travel
There is no secret about travel benefits and perks, but it helps to think about the particular ones you’ll need for business travel. Do you frequently pay for Wi-Fi service on lengthy flights? Would access to a lounge make it more comfortable for you to wait out extended layovers? You can have access to conveniences that reduce the cost and inconvenience of your business travel with the proper credit card.
Certain corporate credit cards come with benefits like access to airport lounges, TSA PreCheck credit, trip cancellation insurance, and more. Benefits like these can help you save money and improve your travel experience, which is crucial if you run a company that involves a lot of travelling. For instance, the Ink Business Preferred® Credit Card from Chase includes main auto rental coverage you may use instead of your motor insurance, as well as trip cancellation and interruption insurance worth up to $5,000 per person and $10,000 per covered trip.
Here are a few well-known business credit cards along with their advantages for travel. Before applying, remember to read the tiny print because each card has a distinct definition of benefits and coverage.