What Business-Specific Benefits Do Business Cards Offer?

Business credit cards offer numerous special benefits geared toward the entrepreneur. These include programs that give you points or cash-back rewards for common business expenses, travel perks that make life easier during company-related trips, higher credit limits, and more.

Like a typical personal credit card, a business card provides you with a pre-approved funding source you can use as needed up to your limit. They can be a lifesaver when your firm urgently needs supplies but lagging cash flow has left you without the liquid resources to pay for them.

Earn Rewards for Day-to-Day Business Credit Card Purchases

Most credit cards reward cardholders with cash back or points for their everyday purchases. With a corporate credit card, these incentives are tailored to a small business owner’s spending habits.

Corporate credit cards typically offer big membership rewards for cash in bonus categories like:

  • Office supplies — You could get as much as 5% cash back on eligible purchases at office supply stores. For businesses that spend heavily on office-related goods, this can be an attractive bonus.
  • Internet, cable, and phone services — Your office needs utilities anyway, so why not use a rewards credit card to pay for them? Offset your expenses for internet, cable, and phone services with a cash-back bonus.
  • Travel — Travel cards offer up to 5x the points for flights and hotel reservations. And these travel benefits can go even further when you redeem them at a discount through the card issuer’s travel website.
  • Dining out — Your card is a great option for business owners to treat clients or employees with purchases at restaurants, either dine-in or carryout, and get extra perks.
  • Advertising and shipping purchases — If you ship merchandise to customers or make frequent advertising purchases with social media sites, look for a business card that gives a reward boost in those categories.

Enjoy Travel Perks on Business Trips

For frequent business travelers, the right credit card perks can make all the difference. Business cards can include benefits including:

  • Travel insurance — Unexpected cancelations or delays are a hassle, and even worse — they can cost your business money. Thankfully, some business card issuers offer you insurance to protect you from unwelcome surprises.
  • No foreign transaction fees — Many business cards let you use your card abroad at no additional cost.
  • Auto rental damage collision waivers — When you rent a car, a damage collision waiver provides insurance in case of an accident. This saves you money at the counter since you won’t need to pay extra for the rental company’s insurance.
  • Travel and emergency assistance services — To handle emergencies that arise during a trip, many business credit card issuers offer concierge assistance to their cardholders.
  • Exclusive airport lounges — Long layovers are no problem when you have airport lounge access, and it’s stocked with amenities sponsored by your business card.
  • TSA PreCheck and Global Entry — These U.S. government-sponsored programs can help reduce the headaches related to international travel. Your business credit card may come with a credit to reimburse you for associated fees.

Business Credit Cards Offer Greater Spending Power

Issuers of personal credit cards are legally mandated to set credit limits based on your ability to pay; however, business cards don’t have that restriction. According to a 2016 Experian study, average credit limits are more than double for business cards ($56,100) than for personal cards ($26,900).

This means that with a business card, your company will have the spending power it needs to remain competitive. It empowers you to make high-ticket purchases like bulk inventory or expensive computer systems that would quickly eat away at a smaller limit.

Additionally, you may be able to benefit from more favorable terms with a business-specific card. For example, some business cards give you up to 90 days to pay your balance before accruing interest, rather than the typical 30-day term. This extra time gives your business even greater financial leveraging power.

Issue and Manage Employee Cards

With most business cards, you have the capability to issue employee cards to your workers. This allows you to authorize multiple workers to spend from the same account. It also simplifies bookkeeping by keeping expenditures in one place with only one monthly bill to pay.

Plus, you can monitor and set limits on each card, allowing you to maintain control over your company’s finances.

Access Accounting Tools and Reports

Business cards can provide your company with quarterly and yearly credit card activity summaries. These summaries are usually compatible with common accounting programs like Quickbooks and Excel. Additionally, you can automatically download individual purchase records into these accounting programs using seamless software integration.

Streamline your company’s accounting procedures and save time on tax preparation by taking advantage of these functional accounting tools.

Fortify Your Company’s Credit History and Credit Score

Using a consumer card for company expenses may help bolster your personal credit report yet won’t do anything to build your business credit score. When you apply for a business card using your firm’s Employee Identification Number (EIN), your on-time payments will be reflected on your company’s credit report.

By improving or establishing a business credit history, you can situate your business for better loan terms and higher credit limits down the road.

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