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.
- 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.
- 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
Here are The Very Best Credit Cards Today with the biggest rewards points, cash back, and miles.
If you are a frequent traveler, be sure to also check out The Best Travel Rewards Credit Cards today.
And to help improve your financial health and grow your wealth, please check out my Top Financial Products recommendations.
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About the Author: Sam worked in investment banking for 13 years at Goldman Sachs and Credit Suisse. He received his undergraduate degree in Economics from The College of William & Mary and got his MBA from UC Berkeley. In 2012, Sam was able to retire at the age of 34 largely due to his investments that now generate roughly $250,000 a year in passive income. His main passive income focus is on real estate crowdfunding to take advantage of cheaper valuations and higher cap rates in the heartland. He spends time playing tennis and taking care of his family.
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