Owners of both new and established small businesses can benefit from a broad range of valuable perks offered with credit cards. Business credit cards not only provide a means for building and establishing business credit, but they can assist in record-keeping, preserving cash flow and separating business and personal finances. Much like consumer credit cards, the right business card can offer a plethora of rewards that you can redeem for flights, hotel stays and cash back on purchases.
Here are seven significant credit card perks for small business owners.
1. Valuable sign-up bonuses. Many credit cards offer a range of one-time promotions designed to attract new cardholders and business owners. These promotions might include sign-up bonuses allowing you to earn hundreds of dollars if you meet a specific spending requirement within a few months of opening the account. Sign-up bonuses may also award enough miles and points that you start out with free airline flights or hotel stays, simply for using your credit card.
2. 0 percent introductory APRs. While business credit cards are more likely to offer a 0 percent introductory APR on purchases rather than balance transfers, this business card perk can result in saving hundreds of dollars in interest payments. Introductory APRs are especially cost-effective if you have startup expenses, need to stock up on office supplies or just plan to make a large business purchase. If you pay down your balance within the introductory period, which is sometimes as much as a year or longer, you can save a significant amount of money in interest payments.
3. Rewards for office supply purchases. Whether setting up your new business or stocking up on printer toner, paper and office furniture, you get the most from your purchases if you use a credit card that specifically rewards those purchases. Depending on the card, you can earn as much as 5 percent cash back on office supplies, Internet access, cellphone service and many other expenses necessary to run your business. Business credit cards might also award points that you can later redeem for cash or retailer gift cards — including office supply retailers such as Office Depot and Staples — saving you even more on your business expenses.
4. Free employee credit cards. Although some business credit cards charge an additional fee for employee cards, many provide them free. In most cases, you can set individual spending limits while providing your employees a line of credit for business expenses or business trips, as well as the ability to help rack up the rewards. If you have one employee or many, you’ll get the most from your credit card with free employee cards.
5. Small business tools and assistance. Many business credit cards come equipped with experts trained to assist small business owners. Access to online communities where you can ask business-related questions and take advantage of tools, tips and information for starting and managing your business are also often a perk of being a card member. Small business tools such as access to quarterly reports and year-end summaries, and the ability to download your records to various bookkeeping and accounting software programs such as QuickBooks and Quicken, can make managing your business a breeze.
6. Tax assistance and deductions. Business credit cards not only help you manage and download reports for accounting and filing taxes, but in many cases, they’ll help you take advantage of tax deductions. Cardholders often have access to apps that can be used to snap photos of receipts with a smartphone or tablet, and then you can tag and attach the receipts to the corresponding purchases on credit card statements. When tax time rolls around, you have all your tax-deductible business purchases and receipts itemized and in one place.
7. Savings on business expenses. Business credit cards often provide their card members with exclusive access to special shopping portals featuring additional savings and discount opportunities with popular small business and office supply purchases. And with rewards cards, you often earn points or cash back when you shop with these retailers, in addition to the rewards you earn just using the credit card. These portals allow numerous opportunities to cut your expenses on travel purchases, office equipment and general office supplies.
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7 Credit Card Perks for Small Business Owners originally appeared on usnews.com
