Benefits of Business Credit Cards

By Jade Balle

  • Overview

    Why do business card issuers offer benefits to business owners? To increase credit card purchases so that the credit card company can make more money on interest charges each month. Membership rewards programs encourage credit card users to spend and spend, even if not necessary, so that they can reach a certain points goal in order to receive rewards. If a credit card company can get a business owner to spend outside of his needs, there is a good chance that the owner will develop a reliance on the card, accrue an ongoing balance and pay loads of interest over time.
  • Solving Cash Flow Problems

    From time to time, a business might experience a short-term cash flow issue. Maybe the business owner had a large bill to pay towards the beginning of the month or had to order supplies, leaving little left over for paying additional business bills towards the end of the month. Additionally, the business owner may be waiting for a payment from a customer or an invoice that will be due later on in the month. In this case, a business credit card can come in handy. If the business owner manages his finances well, he can use the credit card to pay those bills and then pay the balance off when funds are received.
  • Special Discounts on Supplies

    When you sign up for a business credit card, there are usually a number of special benefits that come with it. Many business card issuers have arrangements with suppliers to offer you a discount on your purchases when you use the card. For example, American Express business card services has had deals in the past for discounts at office supply stores like Staples. The discounts are usually associated with stores that carry items that business owners commonly need, like paper, ink, computers and business furniture.


  • Frequent Flyer Miles

    Some business owners and employees have to travel frequently for business reasons. To answer this need, many business credit cards give business owners frequent flyer miles related to their usage of the card. Frequent flyer miles are accrued on a points basis--for each dollar spent on the business card the business owner is given a certain number of points towards a free or discounted flight.
  • Shipping Advantages

    Shipping is a substantial expense for businesses who deal with physical products. It is not uncommon for a business to spend 10 to 25 percent of the budget on shipping costs, depending on the volume of goods sold. So many business credit card programs will give special shipping rewards and discounts to card users. The only condition is that the company must link its shipping account to the business credit card so that all shipments will automatically be paid on the card.
  • Membership Rewards

    Business credit card companies also have a membership rewards programs for their customers. Similar to frequent flyer programs, membership rewards are accrued when the card user makes purchases. Membership rewards include tickets to shows, free dinners, sports items, gift cards and clothing.
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