How small businesses use credit cards to improve their bottom line – and help simplify their operations
We usually spend a lot of time on our personal credit cards on our Point Guy. By choosing the right cards (and then using them responsibly), the average consumer can earn hundreds of dollars in rewards each year – whether it’s cash back, airline miles or a flexible point that can be used in many ways.
But small businesses can also use credit cards to earn rewards – in fact, one might say that these products are more valuable to business owners than to consumers.
Regardless of the size of your business, you can use small business credit cards to improve the bottom line and simplify your operations.
getting Started
Getting small businesses off the ground can be a huge task. Depending on the nature of your operations, you may need to invest in inventory, advertising, equipment, or many other upfront expenses. This can sometimes happen weeks or even months before you get any income.
Thankfully, small business credit cards can provide direct funding to help in these early stages. In fact, some cards even offer an introductory 0% annual percentage of purchases – e.g. Ink Business Unlimited® Credit Card (See Interest Rates and Fees), this introductory offers 0% APR within 12 months of opening a purchase account (after that, for variable APRs of 17.49%-23.49%). This can help dominate the impact of some large initial spending.
If you have not yet used a federal employer ID number or EIN for formal business, don’t worry. Many commercial credit cards allow you to apply (and get approved) using only your Social Security number as a sole proprietor. This is an important starting point for you to build your business and have a stable revenue.
Related: Who is eligible for a commercial credit card?
This is exactly how Dorie and Michael, a glass-blowing studio in Brooklyn, New York, started at Shiny Sparkle Labs. They start with a simple, unfamiliar fee card to fund their early operations and then add other cards as they build business credits to diversify rewards and increase revenue potential.
Valuable rewards
Speaking of rewards, this is another important feature of small business credit cards. Whether you are looking for cash back to reinvest your operational rewards or investing in your next trip, you can sit in the driver’s seat to support your unique business. In fact, many cards offer rewards in the business-friendly category that may match your average fee, including online advertising, telecom purchases, office supplies and food for entertainment prospects.
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For example, one of my own small business credit cards is Ink Business Cash® Credit Card (See interest rates and fees), which I opened as a sole proprietor a few years ago and then owned a full-fledged LLC or LLC. I like the revenue rate on this card:
- 5% return on office supply stores and internet, cable and telephone services (up to $25,000 in consolidated spending per account anniversary year)
- 2% of gas stations and restaurants (up to $25,000 in each account anniversary year)
- 1% of other purchases
better? There is no limit on rewards on most small business cards.
No matter how you spend money, there is a business credit card that can keep valuable rewards in your pocket.
Business-friendly privilege
In addition to the rewards you can earn, many commercial credit cards are at various specially designed privilege levels, considering small business owners. Although usually found on more advanced cards, they can still go a long way to offset the card’s annual fee – in many cases, these are the purchases you’ve already planned to make.
For example, recently launched Chase Sapphire Reserve for Business- (See rates and fees) Includes the following statements of credit:
- Google Workspace: Until December 31, 2027, the annual statement credit for purchases directly with Google Workspace is up to $200.
- doordash: Get free DashPass membership every month, as well as Doordash points up to $25 per month, including $5 per month promotions, twice-monthly $10 groceries, retail orders, and more until December 31, 2027.
- Ziprecruiter: Annual statement credits earn up to $400 from purchases made directly with Ziprueiter ($200 from January to June and $200 from July to December 31, 20027.
- Lyft: Up to $10 per month’s points can be sold for up to $10 before September 30, 2027.
- Gift Card: When you purchase a gift card from giftcards.com/reservebusiness ($50 from January to June, $50 from July to December) to October 31, 2028, you can earn up to $100 in statement points per year.
If you are currently using any of these providers, make sure to investigate if this card (or others on the market) is perfectly appropriate.
Tools for managing spending
Finally, most small business cards have instantly built tools to simplify your operations and control spending. This includes integration with bookkeeping software, which can help you make your invoices and tax preparations simply. You can also add employee cards to your account. In fact, many cards allow you to set personalized spending limits on these authorized users, which ensures that every employee has what they need to buy for the business without having to worry about overspending.
Additionally, many commercial credit cards have flexible payment methods to ensure you manage your business’ cash flow.
The best part? These tools are usually placed directly on qualified cards; there is no additional purchase or fee to enable them.
Bottom line
As a small business owner, you have a lot to manage every day. Thankfully, there is a product that can help you relieve these burdens in many aspects of your business: Business credit cards. From helping you start earning valuable rewards and unlocking numerous perks, the right card can help you improve your bottom line. With built-in tools to manage spending and cash flow, these cards can improve your efficiency – put your precious time back in your pocket and focus on growing your business.
If you own a small business (or plan to start a business soon), be sure to check which business credit card is best for you.
