6 Lesser-Known Benefits of Business Credit Cards

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Small business owners and entrepreneurs can benefit greatly from a business credit card, and for more than one reason. For starters, a business credit card extends a line of credit that business owners can use to improve their cash flow, and some cards even offer a 0% annual interest rate for a limited time.

Business credit cards also make expense accounting much easier, mainly because every purchase made by the business owner and his employees will be fully documented on their account statement each month.

But other lesser-known benefits also exist and can be invaluable to the right business owner. When comparing business credit cards to find the right one for you, look for options that offer some (or most) of the following.

Free employee cards

Many business credit cards give you the ability to distribute cards to all of your employees at no additional cost, which is a major benefit. An example is the Capital One Spark Miles for Business. With each employee having a credit card, you’ll spend less time reimbursing employees for business purchases they had to pay for themselves. You’ll also get a full record of every purchase made by every employee on your account statement each month.

Having a dedicated credit card for trusted employees can also help you earn cash or other rewards on all of your business expenses instead of just a few. Also note that the rewards employees earn are paid into the account of the primary cardholder, so they can be used by the business owner as they see fit.

Accounting software

Some business credit cards also offer detailed reports of your business expenses each year, including the Capital One Spark Cash Select. This small business credit card also makes it easy to upload your expense reports to multiple software such as Quicken, QuickBooks, and Excel. Capital One’s new Capital on Tap business credit card promises similar integrations with tools like Xero, FreeAgent, Quickbooks and more.

Having a way to automatically upload your business purchases into software will save you a significant amount of time, as opposed to manually entering this information. Plus, the ability to automatically sync your credit card with accounting software means you’re less prone to errors and other accounting issues.

Discounts on software and services

Some business credit cards also offer annual credits for certain software or discounts on certain types of services. The Business Platinum Card® from American Express is the best example of this, as it offers the following credits and discounts:

  • Up to $400 in Dell Technologies statement credit per year
  • Up to $360 in statement credit for Indeed hiring and recruiting products and services
  • Up to $150 in statement credits for purchases made with Adobe each year
  • Up to $120 in wireless phone service credits each year

Note that these benefits are standard for cardholders who sign up for this card and pay the annual fee. Another similar perk is the ability to earn rewards on software and services you already pay for. The American Express® Business Gold Card, for example, earns 4X points on up to $150,000 per year in two select categories your business spends the most each billing cycle. Categories include advertising (purchased in the United States to promote your business online, on TV or radio), shipping costs in the United States, and purchases of software, hardware, and cloud data in the United States States made directly from select vendors, and more.

Consumer protections

For many small business owners, broken or stolen equipment – from a laptop to a sewing machine – can disrupt sales. And if money is tight, you might not be able to afford a replacement. But did you know that business credit cards often come with a benefit that can help in such a situation?

The Ink Business Unlimited® credit card is a good example in this category as cardholders automatically receive purchase protection worth up to $10,000 per claim and $50,000 per account each year. This cover is valid for up to 120 days from the date of purchase of the item concerned and applies to most cases of damage or theft.

This card also adds extended warranties on qualifying items you purchase that already come with a manufacturer’s warranty. Specifically, this coverage adds an additional year of protection to manufacturer warranties of three years or less.

Travel benefits and rewards

Travel rewards and perks are no secret, but it’s worth considering which ones you’ll specifically need for business travel. Do you often pay for Wi-Fi to work on long flights? Would lounge access help you wait out long layovers more comfortably? With the right credit card, you can access amenities that make business travel cheaper and more convenient.

Some business credit cards offer benefits such as airport lounge access, credits for TSA PreCheck, trip cancellation insurance and more. Such perks can save you money and make your trip more comfortable, which is important if you own a business that requires frequent flights. For example, the Ink Business Preferred® credit card from Chase offers trip cancellation and interruption insurance worth up to $5,000 per person and $10,000 per covered trip, as well as car rental coverage. primary car that you can use instead of your own car insurance.

Here are some popular business credit cards and their travel benefits. Note that each card defines benefits and coverage differently, so always read the fine print before applying.

The bottom line

Either way, choosing a business credit card is never easy, but you might have a hard time deciding if you want as many features and benefits as possible. After all, most business credit cards offer some of the benefits above, but not all. That means you’ll have to do some research to find the right business credit card for your needs. In the meantime, you may need to prioritize certain credit card perks over others that you want.

To find the best card for your small business, you’ll want to compare offers from the best business credit cards. From there, think about the benefits you want most and sign up for a card that offers them for free.

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