7 business credit card benefits you can't afford to ignore

The best corporate cards harness advanced technology to simplify the often complex task of tracking and managing business expenses as well as expedite the reporting process.

AI-powered categorization automatically maps transactions to their appropriate expense categories, and seamless integration with accounting software eliminates manual data entry and improves accuracy. Customizable spend controls allow businesses to tailor expense monitoring to their specific needs, whether for project-related costs or departmental spending, and help prevent overspending before it happens.

Additionally, real-time alerts and notifications serve as a financial early warning system, instantly flagging unusual charges or budget overruns. This immediate feedback keeps you in the driver’s seat and helps prevent unauthorized use.

Improved expense management also can lead to significant cost savings by identifying unnecessary expenses and helping you strengthen vendor negotiations. The comprehensive insights from a consolidated business credit card program help foster more informed, data-driven decision-making.

By providing a clear view of spending patterns, business credit cards empower companies to optimize their finances. This visibility not only helps in eliminating waste but also in making strategic choices that contribute to stronger overall financial performance.

One of the standout advantages of corporate credit cards is the access to higher limits and thus, more spending power, especially compared with the limits of personal cards.

High limit business credit cards give companies the flexibility to make larger purchases, invest in growth opportunities, and manage cash flow more effectively. For instance, an outdoor goods company might use this expanded credit to stock up on skis, poles, and other inventory during peak ski season. They could also lean on their high-limit card to invest in new warehouse equipment or cover unexpected expenses without disrupting day-to-day operations.

In addition, higher limits can positively impact a company's credit utilization ratio, which is a key factor in credit scoring. By maintaining a lower ratio (typically below 30%), a company can potentially boost its credit scores, opening doors to more financial opportunities down the road.

However, the goal is to view these higher limits as a strategic tool rather than an invitation to overspend. To manage higher credit limits effectively, you’ll want to:

• Regularly review and adjust limits based on business needs and revenue

• Implement strict spending policies and approval processes

• Monitor credit use closely and keep usage at a reasonable rate

• Pay balances in full when possible to avoid paying interest

• Use accounting software to track expenses and ensure timely payments

By responsibly leveraging credit cards with higher limits, businesses can fuel growth, navigate financial challenges, and build a stronger credit profile.

Much like personal cards, corporate business credit cards offer reward systems designed to help you earn while you spend. These typically fall into three categories: points, cash back, and travel rewards. Points can often be redeemed for a variety of options, including statement credits, travel, or merchandise. Cash back programs provide a straightforward percentage return on purchases, while travel rewards cater to businesses with frequent travel needs.

Popular reward categories for businesses include:

• Travel (flights, hotels, and car rentals)

• Office supplies and equipment

• Advertising and marketing expenses

• Dining and entertainment

Here are a few tips to maximize rewards on your business spend:

• Choose a card that provides big multipliers on their highest spending categories

• Consolidate company spending onto a single card program when possible

• Pay attention to rotating bonus categories and special promotions

Top business credit cards vary in their reward structures, so you’ll want to shop around. For instance, the American Express Business Gold offers 4x points on the two categories where you spend the most each month, while the Chase Ink Business Preferred provides 3x points on travel, shipping, internet, cable, phone services, and advertising purchases. For businesses with diverse spending patterns, the Capital One Spark Cash Plus card offers unlimited 2% cash back on all purchases.

The Brex business credit card offers multipliers on key spending categories such as software subscriptions, travel, rideshares, and dining. This Brex card allows great flexibility in redemption options — Brex points can be redeemed for rewards like cash back, travel, statement credit, or even business-building options like billboard advertising and team offsites.

For businesses with high volumes of travel, the travel rewards offered by many business credit cards can return solid value. These perks often include:

• Airline miles to redeem for free or discounted flights

• Hotel points that can get you free night stays or room upgrades

• Airport lounge access with amenities like Wi-Fi, refreshments, and business-friendly workspaces

• Travel insurance for trip cancellations, lost luggage, or rental car accidents

Such business credit card benefits can reduce travel costs and improve comfort and productivity for your road warriors. For instance, airport lounge access can provide a quiet space for pre-flight meetings or last-minute work.

Many business credit cards have further partnerships with major airlines, hotel chains, and rental car companies, offering additional perks such as:

• Priority boarding and free checked bags with airlines

• Elite status in certain hotel loyalty programs

• Discounts or upgrades on car rentals

The potential savings are significant. A business traveler making 10 trips per year could save:

• $500+ on checked bag fees

• $1,000+ on airport lounge day passes

• $1,000+ on hotel stays through points or elite status perks

Such rewards can dramatically reduce an organization’s travel expenses, potentially saving thousands of dollars annually while providing elevated travel experiences for employees.

Some credit cards charge for additional cards, which invites the age-old practice of card sharing. The problem with sharing cards is that it’s hard to tell who spent what and when, invites unauthorized use, and overall complicates your card program. The best business credit cards allow you to issue additional cards to employees free of charge, so you can centralize spending and expense reporting, and maintain tight control over company finances.

Key benefits include:

• Individual spending limits: Set custom spend limits for each employee based on their role and needs.

• Category restrictions: Limit purchases to merchant categories or even specific vendors.

• Real-time monitoring: Track expenses as they occur so you can immediately resolve issues or re-appropriate spend limits.

Businesses that give employees cards to make authorized purchases often see an uptick in efficiency. For instance, a sales representative can quickly book travel or entertain clients without delays for approvals. That’s because there’s no need for reimbursements, less paperwork, and a faster procurement process. You might look into a card program that offers corporate purchasing cards so teams can make business-critical operational spend without delay.

To effectively implement an employee card program:

• Clearly communicate usage policies and spending guidelines

• Regularly review and adjust individual limits and restrictions

• Integrate your expense management software and ERP for enhanced accuracy and reporting

• Conduct periodic audits to ensure compliance and identify optimization opportunities

If you’re concerned about security or misuse, the card controls and capabilities provided by most business credit cards will eliminate those concerns.

Employee card programs like Brex offer enhanced security and fraud prevention through virtual business credit cards, which use a unique digital card number for making online payments. If anything happens, the virtual card cancellation process is much faster and allows employees to retain access to their card accounts.

Do you need to purchase inventory, upgrade equipment, or manage seasonal cash flow fluctuations? Business credit cards can act as agile short-term financing solutions. Using a corporate card for short-term financing allows companies to capitalize on opportunities or navigate financial challenges without the lengthy approval processes that traditional loans demand.

Many cards feature promotional offers like 0% APR periods, typically ranging from 9 to 15 months. Such cards can be strategically leveraged for big-ticket purchases or temporary cash flow management. For instance, a business could finance a major equipment purchase interest-free, spreading the cost over several months while preserving working capital. Or high-limit cards like Brex give you additional spending flexibility without taking on a new card program.

Compared to traditional loans, business credit card financing offers:

• Faster access to funds

• No collateral requirements

• More flexible repayment terms

• Lower barriers to entry for new or small businesses

You’ll want to set some ground rules to avoid debt traps:

1. Have a clear repayment plan before using credit card financing

2. Prioritize paying off balances before promotional periods end

3. Avoid using credit cards for long-term financing needs

4. Regularly review and compare financing options

5. Consider setting up automatic payments to ensure timely repayments

While business credit cards can be a short-term financing tool, they should be used judiciously as part of a broader financial strategy. When used responsibly, the benefits of having a business credit card improve cash flow and drive business growth.

A strong business credit profile can open up access to better financing options, more favorable payment terms from suppliers, and increased credibility with potential partners or investors.

Responsible use of a business credit card is an effective way to build credit history. Here are some of the key factors that influence a business credit score and how you can capitalize:

1. Payment history: Use the card regularly for business expenses and pay your balance in full and on time each month.

2. Credit utilization: Sure, you want to use your credit but also try to keep balances to less than 30% of your limits.

3. Length of credit history: To demonstrate responsible credit use over time, gradually increase your credit limit as your business grows.

4. Credit mix: Have a variety of credit types (e.g., cards, loans) and monitor your business credit reports regularly.

It may take time, but the long-term benefits of a strong business credit profile are significant. They include:

• Access to higher credit limits and lower interest rates

• Improved negotiating power with vendors and suppliers

• Better chances for approval of business loans or leases

• Separation of personal and business finances

Following these practices consistently will help you build a strong credit profile and set the foundation for future financial opportunities and growth. To get started, browse some of the best no annual fee business credit cards and see why Brex is one of the top options for businesses of all sizes.

Brex stands at the forefront of fintech innovation, offering cutting-edge business credit cards and financial solutions tailored to the unique needs of startups, growing companies, and large enterprises. Unlike traditional financial institutions, Brex understands the fast-paced, dynamic nature of modern businesses.

With Brex, companies enjoy benefits like higher credit limits based on cash flow rather than credit history, instant virtual cards for online purchases, and integrated spend management tools. Additionally, our rewards program is designed to maximize points and accelerate returns on common business expenses like software subscriptions and travel. And with no personal guarantee required to get a Brex card, you’ll keep your business and personal finances separate.

Online gifting platform Goody switched to Brex’s business credit card and redeemed Brex points in some impactful ways, including a Times Square billboard. “With our current focus on profitability, we had to deprioritize big branding campaigns,” said Goody CEO Katy Carrigan. “To have Brex helping us obtain this screen time is very cool — and meaningful.”

Ahad Azalman, Goody’s Director of Finance, added: “With Brex, we’re freeing up significant hours every day. And with that automation piece in place, we’ve also seen zero fraud since using Brex.”