The best small-business credit cards are popular for a simple reason. From helping you improve liquidity and cash flow to providing a bevy of bonus rewards including cash back and points that can be redeemed for free food and travel, they're packed with time- and money-saving extras to help out small-business owners.
Wondering what the best business credit cards for small-business owners are, and how they can help you build and grow your operations? Look no further: Below, you'll find five reasons that the best small-business credit cards are a must-have for any entrepreneur—and how, no matter your industry or area of expertise, they can help you chart your way to greater success going forward.
Why Small-Business Credit Cards Make Sense for You
What is the best small-business credit card? Among many upsides, the best business credit cards for small-business owners can help you:
1. Separate Personal Expenses From Business Expenses
Unlike personal expenses, many of which cannot be deducted from your taxes, myriad routine small-business expenses—e.g. equipment, office supplies, and travel—are tax-deductible, and can lead to significant financial savings over the course of any given year. The best credit cards for small-business owners (which you can charge professional expenditures on) make it easy to separate the two and stay on top of costs, including tracking which categories you most frequently spend on. They also make it easy to view business charges on a single statement, instead of having to keep track of and separate out charges to multiple bank accounts and debit cards, and can provide various rewards and incentives as an added bonus.
Building a better credit rating for your business can help you access more capital, enjoy greater liquidity and increase your purchasing power.
In addition, if you're traveling frequently or racking up charges in the field, they can also help you make expense management far simpler, or, if you're working with multiple employees, to centralize all charges on a single account. You can also capitalize on specialized small-business credit cards to earn extra points and rewards at your favorite airlines and hotels as well if you're a frequent commuter.
2. Enjoy Rewards That Benefit Your Business
Why are the best small-business cards for small-business owners so popular with firms in every field? You don't have to look far to discover the multitude of incredible perks and membership rewards they offer as well. For example: Up to 5X as many points on select flights and hotels, complimentary access to exclusive airport lounges, bonus rewards on categories where you spend the most each month, flexible payment options and more. Boasting numerous hotel, airline and restaurant partners, small-business owners who register for these solutions can quickly earn cash back, access all sorts of freebies and enjoy exclusive discounts and complimentary perks at their favorite destinations. Moreover, certain small-business cards will even give you more for every point, letting you get more gift cards, tickets or travel upgrades for every point you spend. In effect, every time you use them, you're also putting money back in your pocket—and bringing yourself one step closer to enjoying all sorts of luxury upgrades and amenities at no additional expense.
3. Build Your Business Credit Rating
Building a better credit rating for your business can help you access more capital, enjoy greater liquidity and increase your purchasing power. The sooner you can increase it, the likelier you are to get approved for business loans, be able to tap into lines of credit and access other forms of financing that can help your business grow. Luckily, the best business credit cards for small-business owners can help you manage monthly expenses more effectively, and steadily build up a winning financial history over time. Several offer deep discounts on purchases and financing terms, while still more provide interest-free shopping at many of your favorite vendors. Using the best small-business credit cards, you can be much more effective at building and sticking to a monthly budget—and getting in the habit of keeping expenses more manageable over time.
4. Benefit From Insurance and Purchase Protection
Have you recently purchased an item that's been stolen, lost or accidentally damaged? Some credit cards offer insurance on qualified buys for up to a certain number of days from the time of purchase, allowing your small business to operate with greater peace of mind. Likewise, you also may be covered for the full purchase price if you try to return an eligible item within a set number of days after you've bought it and the merchant refuses to take it back.
Even better, if you're a road warrior, you'll also find numerous perks available such as travel accident insurance, car rental and loss insurance, baggage insurance and more. As a result, whether heading out of town or shopping from the office, you can rest easier knowing that someone's watching your back.
5. Tap Into Low-Interest Borrowing
Funding a small business is no small task, and offsetting income and expenses is often quite a juggling act. Luckily, the best small-business credit cards don't just offer flexible payment terms, but also low-interest rates and sign-up incentives aplenty that can help you manage your monthly spend. Specifically designed to speak to the needs of small-business owners, these cards offer numerous perks from flexible spending limits to better ways to track and manage workforce expenditures, so you can stay cash-flow-positive whether you're a team of one or dozens. The more you leverage the multitude of helpful money management tools they provide, the more effective at making the most of every dollar that you'll be.
Long story short: The best small-business credit cards don't just provide a handy way to help you get a better handle on your finances. They're also a best friend to frequent fliers, and one of the most important and useful tools a small-business owner can capitalize on.
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