Smart Ways to Use a Business Credit Card

While 65% of small businesses in the US use a credit card, only half of these cards are in the business’s name. However, when used effectively, a business credit card can offer businesses much more than just a means to access cash quickly or a convenient way to pay for purchases. A business credit card offers many valuable benefits, from improving cash flow with expense tracking to rewards and better control over business finances. In this article, we’ll look at a range of practical and smart ways you can use your business credit card to get the most out of it and help you grow your business.

Know Your Business Credit Card

Not all business credit cards are the same or offer the same benefits. That’s why it’s important that you choose a credit card that meets your business’s needs, and that you know all the features and advantages it offers. For instance, if your business credit card has a 0% APR introductory rate, ensure you know when it expires. You should also have a good grasp of the rewards available with the card. That way, you can maximize all the benefits available and make your business credit card work for you.

“A credit card has the potential to be a powerful business tool. Businesses can optimize the benefits of a business credit card by using it to diligently track expenses, effectively manage cash flow and leverage available cashback and rewards.”

“Only by using it responsibly and paying the balance in full each month can businesses unlock the full potential of a business credit card. In doing so, businesses can maintain a good credit history, avoid unnecessary interest charges, and fully maximize the rewards.”

David Luck, Founder and CEO of Capital on Tap

Utilize Credit Card Rewards

Many business credit cards offer valuable rewards and benefits that can be earned on everyday purchases, for example, office supplies, equipment, travel and fuel. These benefits may include discounts on business expenses, travel rewards, cashback, or give you points to redeem for certain perks. You can use these rewards and benefits to offset your expenses or reinvest in your business.

Track Your Expenses

You can use your business credit for all your business-related expenses. This enables you to track and categorize each expenditure, monitor employee spending, and simplify your bookkeeping process. This approach enhances financial transparency, improves expense management, and contributes to more efficient business operations.

Maximize Travel Rewards

If you or your employees frequently travel for business, there are business credit cards that offer crucial travel benefits such as insurance, hotel discounts, and airport lounge access. By utilizing these perks you can save your business money on your usual expenses and at the same time, enhance your overall travel experience.

Take Advantage of Purchase Protection

It’s common for business credit cards to offer purchase protection. You can use this on business-related equipment, such as computers or hardware, so if they break down, you are covered for repairs or a replacement. This valuable credit card feature protects your business investments and ensures no interruption to your business operations.

Finance Large Business Purchases

A business credit card can enable you to finance a large and expensive purchase at no additional cost. If you need to purchase an expensive item, you can use a business credit card with a 0% APR introductory rate to access credit interest-free as long as you repay the expense within the introductory period.

Simplify Bookkeeping and Expense Reports

By using a business credit card, you can combine all your business-related expenses in one place. A business credit card can categorize expenses, provide comprehensive statements, and allow you to monitor and analyze spending. Furthermore, giving your employees a business credit card for their business-related expenses can reduce the time and effort spent completing and approving expense reports.

Pay Your Whole Balance on Time

One of the smartest ways to use a business credit card is to pay the balance in full each month, carrying balances forward will incur interest. Failing to pay your credit card bill on time can also negatively impact your business and sometimes even your personal credit score, making prompt payment critical. If you can’t afford to pay off your whole credit card balance each month, it’s a good idea to keep your balance to under 30% of your spending limit.

Build Your Business Credit

Using a business credit card responsibly can help you build your business credit score, enabling you to qualify for competitive deals and rates in the future. This means ensuring that all your business accounts are in your business name, paying off your monthly balance timely, monitoring your statements, and always looking for ways to improve.

Automate Everything

You can streamline your processes by automating the management of your business credit card, from tracking expenses to paying bills. Setting up auto-pay to cover the minimum payment ensures you pay the required minimum amount each billing cycle. You can also set up text and email alerts to notify you when your balance has changed, or an auto-payment is due.


Using a business credit card can help you improve your financial management. Optimizing features like streamlined expense reports, and monitoring and tracking expenses can help you improve your finance management. Maximizing rewards and paying off your balance on time can help your business maintain financial stability. This informed approach can make a significant contribution to improving your business’s cash flow and growth potential.