Business Credit Card Perks You Never Knew Existed

From cash-back rewards to airline miles, small business owners can leverage business credit cards to help grow their business, increase cash flow, improve their business credit score, and more.

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure.

For many small business owners, a business credit card is an essential part of everyday operations. Not only do business credit cards help with cash flow—they also offer additional benefits that help small businesses grow. Let’s take a look at some of the top business credit card perks.

Table of contents

What is a business credit card?

A business credit card is a credit card used for business purposes, as opposed to one used for personal spending. Many small business owners rely on business credit cards for everyday business expenses or even to pay employees.

For the most part, credit cards function similarly to personal credit cards, but they do differ in a few ways: first, the user must be a business owner or sole proprietor in order to open this type of account. Second, business credit card activity is typically reported to a commercial credit bureau rather than consumer credit bureaus.

It’s also important to note that most business cards have shorter 0% APR terms than a personal credit card, so it’s important to pay attention to annual fees.

Small business credit cards vs. corporate credit cards

Small business credit cards also differ from corporate credit cards, especially when it comes to liability. On a corporate credit card, the company is held liable for any fees or debts, while with a small business credit card, the primary cardholder is liable for those debts.

Corporate credit cards also have stricter requirements for approval, whereas any type of business owner or sole proprietor can open a business credit card.

Benefits of a business credit card

So why might a business owner be interested in opening a business credit card? Here are a few of the top business credit card perks to consider.

Increased cash flow

The main reason most small business owners open a business credit card is to increase their purchasing power. Cash flow can be a challenge for many businesses, especially during the first few years. A business credit card eases those challenges by allowing business owners and their employees to make purchases using a line of credit.

Your company might need a business credit card for a wide range of expenses, including office supplies, inventory, lunch for a client, transportation, and travel.

Business and personal finances stay separate

Mingling business and personal finances can get complicated quickly—even for sole proprietors or those with a side gig. Fortunately, opening a small business credit card is a great way to keep business and personal spending separated. This streamlines record keeping and makes it much easier to compile an accurate annual tax return.

Reward programs

Reward programs may not be the main incentive for opening a business credit card, but they certainly are an appealing perk. Most of the top business credit cards offer reward programs that allow the primary cardholder to earn cash back, points or miles that can be put toward statement credits, gift cards, and travel.

Best Credit Card Processing for Small Businesses
Square
Best overall
4.3 out of 5 stars
4.3
Payment Depot
Best pricing plans
4.8 out of 5 stars
4.8
National Processing
Best customer service
4.5 out of 5 stars
4.5
Stax
Best point-of-sale integration
4.3 out of 5 stars
4.3
Stripe
Best for global sales
3.8 out of 5 stars
3.8
Learn more about our top brands.

Improved business credit rating

When paid off in a timely manner, a business credit card can quickly improve your company’s business credit score. While the primary cardholder is liable for debts on a business credit card, this credit rating is separate from a personal credit rating and can be an important tool to gain better financing or business loans.

Easier management of employee spending

From employee travel to client dinners, many small businesses struggle to keep track of employee spending. A business credit card is an easy solution, allowing business owners to monitor exactly what employees are spending money on or even set limits for employee cardholders.

Get a better business bank account

Want affordable banking with great perks? With BlueVine, you can get a fee-free business checking account―and you can even earn interest on account balances over $1,000.

The takeaway

A business credit card offers many unique advantages to small business owners, including increased cash flow, reward programs, and an improved business credit rating. These cards often come with higher spending limits than a personal credit card and make it easy to separate personal and business finances. And while the primary cardholder is held liable for debts and fees, the benefits of a business credit card usually outweigh the risks.

Would you like to learn more about business credit card perks? Check out 10 Best Small-Business Credit Cards of 2021.

Related reading

Business credit card perks FAQ

What are the benefits of using a business credit card?

Business credit cards allow small business owners greater access to capital so they can buy the things they need to grow their business, even when cash flow is tight. They also keep business finances separate from personal finances, can boost a business credit rating, and provide credit card rewards.

Can you use business credit cards for personal rewards?

Business credit card rewards belong to the primary cardholder and are not typically taxable—meaning they can be used for personal rewards. However, some business owners opt to invest them in the company or share rewards with employees.

Do credit cards have perks?

Yes, most credit cards for small business owners offer perks like cash back, points, or flight miles reward programs. These can usually be redeemed for gift cards, cash, travel, hotels, and more.

Is it worth having a business credit card?

A business credit card is an important tool for small business owners, giving them greater purchasing power and cash flow. Though the primary cardholder is personally liable for debts and fees, the perks of the card are well worth the risk (if the card is used responsibly).

What can you do with business credit?

A business credit card can be used for a variety of purposes, including the purchase of inventory, hiring employees, daily business expenses, and other short-term operating costs.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Brooke Kunz
Written by
Brooke Kunz
Brooke is a copywriter and artisan ice cream enthusiast dwelling in California's sunny Central Valley. She's happiest when hiking in the backcountry, baking an overly complex cake recipe, or reading an engrossing new memoir.
Recent Articles
What are Generally Accepted Accounting Principles (GAAP)?
8 Lifehacks to Speed Up Monthly Bookkeeping
We get it: unless you’re an accountant, balancing the books every month isn’t thrilling. So,...
Feature image of a Black female banker reviewing papers with a Black female businesswoman
TIAA Bank Review: Great for ATMs, Okay for Everything Else
TIAA Bank is an online bank with several types of business bank accounts, but it...
Illustrative image of a man and woman checking inventory levels in a warehouse.
How to Get an SBA Disaster Loan
When catastrophe strikes, you’ll want the right assistance quickly. Business.org explains the qualification and application...
What’s the Difference between a Business Credit Card and Personal Credit Card?
Everything you need to know to pick the right credit card for your small business’s...