The top 5 business credit card benefits for employees


Whether you’ve been in business for a few years or just started a startup, you’ve probably thought about getting business credit cards. Credit cards for your business can be a great way to make sure your employees have access to cash when they need it.

About 67% of businesses are already enjoying the benefits of a business credit card, and this number is growing with the favorable terms that credit card companies can offer. Capital on Tap is a business loan provider that provides access to capital for fast-growing small and medium-sized businesses.

The benefits of business credit cards go beyond simply having flexible access to credit. Credit cards give you opportunities to boost your credit score, rewards, payment protection and more.

Business credit card payment
Photo credit: Kampus Production/Pexels

In this article, we’ll look at the top reasons why you should offer business credit cards to your employees.

What is a business credit card?

A business credit card is an invaluable tool for every business. Business credit cards can be similar to personal credit cards in that they allow users to access credit up to an agreed limit. Business credit cards can have higher interest rates than personal credit cards, although you get other benefits with them.

Why do you have a business credit card?

Business credit cards can be very useful in allowing you and your employees access to cash when needed. This can be important in times of low cash flow or when it is more convenient to use a credit card than to process cash payments. Our top five benefits for employee credit cards include:

1. Separation of business and personal expenses

Having a credit card for business purposes is a great way to isolate different expenses and cost centers. This makes it easy for you and your employees to understand what they’re spending on work-related items compared to their own personal expenses or different areas of the business. It is also convenient for employees as they do not have to pay back the money they spend on work. This saves time and eliminates additional paperwork.

2. Monitoring cash flow

Using a credit card helps you keep all of your receipts and expenses information in one place. This makes it much easier for you to keep track of what’s being used and what’s on. Having all of this information in one place makes it more convenient to track your finances and also see changes in expenses. This means you can easily see if your expenses have suddenly increased.

“It’s important to keep track of where your money is going, especially if you have more than one credit card in use. Modern credit cards offer a wide range of expense management tools that allow you to see at a glance the different types of expenses your business has. This allows you to easily see where you can cut back, or where you need to budget more.

– Damian Brychcy, COO and US MD of Capital On Tap

Damian Brychcy, COO Capital on Tap

3. Building credit for business

Just as individuals do, businesses should aim to build their credit rating. Your company’s credit rating shows how good your company is at paying off debts. Increasing your company’s credit rating can lead to lenders offering more lines of credit with lower interest rates or lower fees. Getting employees to use your credit cards and pay off balances quickly will improve your company’s credit score. This is important because nearly half of consumers report that their credit score is too low and does not represent their borrowing habits.

4. Refund and other benefits

There are a wide range of benefits that credit card companies offer to attract or retain customers. Cashback, air miles, and various loyalty point rewards can benefit your business by getting something back every time your company makes a purchase. If you have to spend the money up front on something for your business, it’s worth getting the extra benefits you can.

5. Purchase Protection

Credit cards offer you much better payment protection compared to other forms of payment. This can help, for example, if you have to book flights to visit potential clients, but the flight is cancelled. Having payment protection can help protect your business from financial hardship if something goes wrong.

Other benefits of business credit cards for employees

There are other reasons to give business credit cards to your employees, such as:

  • You may get better interest rates and discounts on some business loans.
  • Some cards can automatically categorize payments so you can see where your company’s money is going.
  • It can be easier to get a business credit card compared to a business loan
  • It can be a flexible payment option that is accepted almost everywhere.
  • There are often easy options to limit labor costs if you need to.
  • It may be more convenient for your employees than holding cash.

How do I make sure my employees are using their credit cards correctly?

If you are concerned about how your employees use your company’s credit cards, this is not an uncommon concern. However, you can easily set rules with your staff about when you can or cannot use the cards. Some business credit cards allow you to set a limit on how much you can spend in a single transaction, making it easy to avoid any big unexpected overspends.

Is it hard to get a business credit card?

No, getting a business credit card is not difficult. In fact, it may be easier to get a credit card than a business loan. However, some credit card companies may have criteria that you should consider before submitting your credit card application. For example, you may have a certain length of business history, or you may need to meet a minimum monthly income.

Is it better to give employees credit cards or debit cards?

A typical approach for companies is to give their employees credit cards to pay off any work-related expenses they need. This is usually because credit cards have better payment protection than debit cards. Credit cards are more likely to offer benefits such as cash back, airline miles or points.

“Debit cards, bills or petty cash cannot go towards business expenses. With credit cards, businesses can spread their spending and get access to capital that they can’t get with bank loans. Combined with the security aspect, credit cards are an invaluable tool for businesses and employees alike.

– David Luke, co-founder and CEO of Capital on Tap

Small business credit card

Business Credit Cards for Employees: Summary

If you run a business, offering credit cards for your employees to use can be incredibly beneficial. Using credit cards helps you keep your business payments in one place, and makes tracking expenses easier. When you use a business credit card, in addition to payment protection and rewards, you can use the card to start building your company’s credit rating, making you more eligible for attractive terms for future loans or lines of credit.


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