CardsWithRewards : Business Reward Credit Cards

Business Reward Credit Cards

Business Reward Credit Cards can give your business the opportunity to earn perks for both you and your employees.  By charging expenses to a business credit card you can get a return up to 5% cash back on various purchases (gas, office supplies, travel or wireless services). A lot of cards have no cap on earnings rewards. Some cards let you earn airline miles and travel rewards - helping bring down the cost business travel. Other benefits include 0% introductory APR's, expense management reporting and higher credit lines.

Get Start-up Capital or a Temporary Cash Injection

One way to fund a new business or a get temporary cash injection for an existing business, would be a 0% balance transfer credit card. With a 0% introductory annual percentage rate, these cards effectively give you an interest-free loan for as long as 12 to 15 months.

Once cash flow improves, you can repay these cheap lines of credits before they convert to higher interest rates. Then, once you establish a regular payment history with the card issuer, your credit line should increase which will give you even greater flexibility.

Do your research though as some cards only give the 0% rate for balance transfers, while others will only give it for new purchases. And be careful not to make any slip-ups, such as a late payment, which may trigger a higher rate. If you're transferring a balance, there may be transaction fees.

Be on the lookout for cards that offer extra benefits, such as cash back rewards, travel-related rewards, and free expense reporting. On the other hand, if you will need to use the card on an ongoing basis to manage your cash flow, choose a card that provides a low fixed APR once the introductory period runs out.
Top

Managing Your Cash Flow

Problems with Cash Flow is one of the most common causes of small business failure. The ability access to inexpensive working capital can be crucial. A small business credit card will give you access to an affordable, unsecured line of credit to help your cash flow as you make necessary business purchases. Improving your cash flow in this way will enhance your chances of long-term success.

Some cards come with 0% introductory rates, but be aware these typically expire after 12-15 months. Some cards also offer low fixed APR after the introductory period. If you plan on using your card regularly to manage your cash flow then pick one of these cards.

Remember just one late payment can trigger higher interest rates so take care. Some even have clauses that allow them to raise interest rates if you have a late payment on another card. So be vigilant when using these cards.
Top

Cash Back on Business Purchases

Business Cash Back Cards offer rewards or cash back incentives which effectively give you a 1% to 6% discount on all your business spending. Over the whole year that can add up to quite a saving.

You can also add your employees as additional cardholders, so that all your business expenditures are charged to the same card account. Each employee should be given a preset spending limit to minimize the risk of fraud. In this way you can maximise the amount of cash back received.

If you're able to pay the balance in full each month, look for a credit card that has the best cash back offering. Many cards offer a premium cash back of 5% or even 6% on typical business purchases, such as computers, office supplies, and travel, and 1% on other purchases. Determine which card offers the highest cash back in the categories where you have the greatest expenses. If your business puts a lot of expenditures on the card you can accumulate substantial rewards over time. Make sure you pay off the balance on the card each month though, as the interest charges would undermine your savings.

Many business credit cards have no limit to the cash back or rewards you can earn. This is an added bonus if you put a lot of business expenditures on the card. To maximize your rewards you may opt for charge cards that have higher spending limits. Some cards have no limits on point accumulation and are extremely versatile. You can redeem earnings for travel rewards, merchandise, and other rewards for your business. But you have to pay off the balance in full every month.
Top

Earn Free Business Travel

Do you or your employees do a lot of travelling? If so then choose a Business Airline Card or Business Travel Card. These cards award you in frequent flyer miles or allows you to accumulate points that can be redeemed towards free travel.

The frequent flyer miles you accumulate on your business expenditures can be save a lot of cash if you use them to upgrade a coach ticket to business or first class. These miles can also be extremely useful if your business entails unexpected travel as late bookings can often be at higher rates. Your accumulated miles may help you reduce this cost and you may be able to book a last-minute ticket using your miles.

Some of these cards will also award you double miles on certain purchases, such as those made in supermarkets, home improvement and hardware stores and gas stations. Look for cards that give you the greatest flexibility when it comes to redeeming the miles.
Top

Free And Easy Expense Reporting

Most Business Reward Credit Cards offer free expense reporting which automatically sort your purchases according to various category giving you an overview of what your main business expenditures are.

Many business cards also provide the option to download your statement into business accounting software, such as Quicken or Quickbooks. This not only simplifies your book-keeping, it also gives you a tool for monitoring your expenses on a more frequent basis, so you don't wind up with surprises at the end of the month.

Most business cards give you the option to request additional cards for employees. This is particularly useful if you have many employees, as it enables you to consolidate your business expenses into one account. Your monthly account summary can be broken down by employee, category of expense, and date. This bypasses the need for employees to write up monthly expense reports and send in invoices for reimbursements, saving your business tedious and expensive paperwork. You can even use a business credit card in conjunction with expense reporting software to enable employees to view and approve charges before submitting them online for approval.

The best news is that these additional features come free with your card offer. No matter the size of your business, a business credit card provides you with greater flexibility in managing your company's credit card expenditures.
Top