A Full Guide to Business Credit Cards

A business credit card refers to a simple credit card that can be used by organisations as an additional line of credit for business expenses. Since the market evolves rapidly, businesses need to stay relevant. This requires many expenses, including extending teams, hiring new specialists, adding new technologies and tools to the process and so on.

As a result, companies seek help. Business cards can become an excellent addition for any organisation requiring financial help and support to keep the speed of the market without any issues. In addition, these cards can be a go-to option for anyone who wants to repay the entire loaned amount within the billing period. Business credit cards can also be used to improve the organisation’s credit profile.

How does a Business Credit Card Work?

Even though some people think that credit cards and business credit cards have many differences, the truth is that they work on the same basis. The key difference between them is that a regular card is used for personal needs, while a business credit card is used for your business. In addition, business credit cards can be used by employees, so when using SaaS integrations such as the Plaid payment processor, you can see transaction history and balances. This is one of the key reasons for businesses to use business cards; they allow for convenience in managing employee expenses, instead of the traditional way where each individual submits expenses.

Does Your Company Need a Business Credit Card?

Most businesses prefer using a business credit card thanks to the convenience it brings for day-to-day expenditure. However, there are many other benefits this card provides. If you are wondering whether your company needs one or not. Explore how this card can help your business to make your decision:

• Separate personal and business purchases;
• Spend regardless of negative cash flow;
• Improves the administration of employee expenses;
• Easy expenses on business trips abroad;
• Does Not affect anyone’s personal credit score; 
• Personalised offers for business needs.

There are many situations where a Brex business card can save the situation. First of all, a business credit card brings extra convenience compared to using bank transfers, a debit card, or cash for business expenses.

Who Can Get a Business Credit Card?

Depending on the provider, businesses that have the following characteristics can get a business credit card:

• You own a small business;
• You are a limited company, sole trader, or partnership;
• You make business-related purchases for an organisation you work for;
• Your monthly revenue is consistent.

Even if you don’t comply with the following criteria, you can still have a chance to get a business card. There are many companies that offer credit business cards for almost any business; you just need to find the provider that matches your needs and current situation.

How to Find the Perfect Business Card?

The best way to find your best business credit card is to choose based on your business, size, amount of employees, industry you work in and other factors. Let’s see a good example. You are a medium business that wants to buy an item of machinery, so you want to spread the repayments over many months. In this case, you will benefit from a business credit card with a low APR (annual percentage rate).

However, if you want to use a card for daily spending, it is best to seek a credit card with an interest-free period. You will need to perform quality market research, compare offers, make a list of ten different providers, and explore benefits. Each provider focuses on specific businesses, so you need to find the one that suits your requirements best.

For example, some cards allow you to collect airline points while doing your normal everyday spending. So when you’ve collected enough, these points can be used to pay for new flights. If you’re looking for a card with cashback or rewards, you can consider cards provided by the American Express range.

What About Fees?

You will need to explore prices on business cards as they greatly differ. Do not opt for the first one you have found. That is because most business credit cards are free for the first month or year. However, the price after a trial period can be really high, so you may need to change the provider. Even if you find a free card with a good price later, you may still need to pay fees. Fees differ depending on your expenses. If you withdraw cash or make purchases abroad, making the biggest fee is exceeding your credit limit or missing a repayment. It will also be costly to balance the roll from one month into the next.

What are the Benefits?

As we mentioned, business credit cards can be highly beneficial to businesses. Besides the obvious benefits that we already listed, some providers can give various perks to credit card owners. For example, you can get a cashback, allowing you to return a percentage back in actual cash, as one of many rewards for using your card. Some providers can also provide free travel or mobile phone insurance. Others can give you great discounts at stores-partners. However, one of the most popular and beloved rewards is air miles which can be used for flight tickets or to upgrade your seat to business class.