Important Benefits Of Small Business Credit Cards

As a small business owner, I know firsthand how much work is involved with starting and maintaining one. With so many responsibilities, having a reliable small business credit card is a must. Today I'm highlighting the important benefits of small business credit cards.

Many self-employed and small business owners like us are always doing some form of work seven days a week, 365 days a year. Thus, one of the benefits of small business credit cards is it tracks all your spending. Unlike cash, you can quickly see how much you've spent and where with automated reports and controls.

Let's discuss the benefits of small business credit cards and the best features of the latest card offerings.

Advantages Of Small Business Credit Cards

If you're on the fence about whether or not to open a small business credit card, there are many important benefits to note. Whatever stage you're at in your entrepreneurial journey, even if you're just starting out, it's well worth considering these important benefits of small business credit cards.

1. Exceptional Rewards That Save You Money

There are so many rewards credit cards today that not having one is almost like throwing money away. With so many options available, you can easily find a small business credit card that offers the best fit for your needs: cash back, miles, travel expenses, gift cards, a combination of these, etc.

Taking advantage of small business credit card rewards can save you a lot of money when you put them to good use.

2. Better Organization And Separation Of Business And Personal Expenses

Staying organized is critical to having clean, accurate books and records. When you or your employees use personal credit cards for business related expenses, things can get muddled, lost or overlooked.

Another one of the important benefits of small business credit cards is you can closely track how much you're spending. The best small business credit cards offer downloadable transaction files and electronic synching to popular accounting software like Quickbooks.

This can save you a lot of time and money. Easy-to-update and clean books also help your business save on taxes by capturing and taking full advantage of every business expense.

3. Builds Credit History For Your Business

Any credit card usage should always be done responsibly if you want to achieve financial success. Please don't sign up for one if you can't afford to. Credit cards are only like “free” money when you pay the balances in full every month so you don't get hit with interest charges or fees. This goes for both personal and business use.

The great benefit of using a small business credit card responsibly is it builds credit history for your business. This in turn can help your business establish and improve your business's credit score. Some cards may even help you improve your personal credit history and credit score if the institution reports the business card activity on your personal report.

4. Improves Access To Business Loans

It can take time to build credit history for your business. Using a small business credit card can help if you aren't reckless. Thus, another important benefit of small business credit cards is responsible usage can help you access small business loans. Not only that, they can help you get better interest rates, saving you even more money over time.

5. Set Limits And Monitor Employee Spending

While I'm sure you trust your employees, even the best workers can get carried away sometimes with how much they spend. The best small business credit cards offer customizable controls that help you set personalized spending limits for each employee.

You can also easily monitor how much they're spending and where with customizable alerts. Having access to controls and purchase monitoring is also another way to protect your business from disgruntled employees or workers who are tempted to push their limits and try to sneak in personal purchases.

6. Access Higher Credit Limits

Another one of the important benefits of small business credit cards is they typically have higher credit limits than personal credit cards. This can be quite useful if you have a big ticket item you need to purchase for your business. Additionally, you can get higher purchase protection benefits with a small business credit card.

7. Added Financial Flexibility And Cash Flow

Staying on top of cash flow is crucial to running a successful small business. Did you know that some small business credit cards offer longer billing cycles up to 60 days? That can come in really handy if you have slow paying clients or off-peak periods with less revenue.

Small business credit cards can help you stay on top of all of your expenses and business purchases needs so your day-to-day operations run seamlessly. Some small business credit cards even offer revolving lines of credit. Just try to use those sparingly and pay them off as quickly as possible.

The Best Small Business Credit Cards

Here are the best small business credit cards available today. All of them are offered by reliable institutions with dependable customer service. In addition they are highly rated among cardholders, offer strong rewards programs, many built-in protections, personalized controls and alerts, great introductory bonuses, and more.

Chase Ink Business Cash Credit Card

I’ve been a cardholder of the Chase Ink Business Cash Credit Card for over 10 years. It’s reliable, easy to redeem rewards, and I’ve earned thousands of dollars in cash back rewards.

Key Benefits

Get $750 cash back if you spend $7,500 in the first three months
0% intro APR for the first year on purchases
Earn 5% cash back on office supplies, internet/cable/phone each year ($25,000 combined limit)
2% cash back rewards on gas and restaurants each year ($25,000 combined limit)
1% on all other purchases, unlimited rewards
No annual fee to worry about
Employee cards are free
Set personalized account alerts and spending limits for each employee
Flexible rewards can be redeemed for cash, travel, gift cards, Apple purchases and more
Built-in fraud and purchase protections covering newly bought items for 120 days against damage or theft (up to $10,000 per claim and up to $50,000 per account).
As a cardmember you’ll also enjoy extended warranty for eligible purchases, as the card extends the US manufacturer’s warranty by an additional year (on eligible warranties of three years or less).
A final perk of holding the Ink Business Cash Card is that it offers an auto collision damage waiver. Essentially, when you rent a car for business purposes and charge it to this card, you can decline the rental car company’s collision insurance and be covered by the card in the case of theft or collision damage. This is valid on most rentals both in the US and abroad — make sure to check the fine print for more details.

Chase Ink Business Unlimited Credit Card

If you prefer earning unlimited rewards, the Chase Ink Business Unlimited Credit Card is an excellent option.

Key Benefits

Get $750 cash back if you spend $7,500 in the first 3 months
Earn unlimited 1.5% cash back on all purchases
Enjoy a 0% intro APR for the first 12 months
No annual fee to worry about
Employee cards are free
Flexible rewards can be redeemed for cash back, travel, gift cards, Apple purchases, and more
Rewards don’t expire if your account is active
Built-in purchase, travel and fraud protections
Set personalized account alerts and employee spending limits

Advantages Of Small Business Credit Cards

1. Exceptional Rewards That Save You Money

2. Better Organization And Separation Of Business And Personal Expenses

3. Builds Credit History For Your Business

4. Improves Access To Business Loans

5. Set Limits And Monitor Employee Spending

6. Access Higher Credit Limits

7. Added Financial Flexibility And Cash Flow

The Best Small Business Credit Cards

Chase Ink Business Cash Credit Card

Key Benefits

Chase Ink Business Unlimited Credit Card

Key Benefits

Further Reading