Published: 14 Sep 2023
Last updated: 14 Sep 2023
Read time: minutes
Unlocking the full potential of a small business credit card can be a game-changer for your company's financial flexibility and growth. Business credit cards are specifically designed to bolster your business's purchasing power and streamline your financial transactions and bookkeeping.
However, while having a business credit card is an effortless way to earn rewards, it's essential to remember that a business credit card should be exclusively dedicated to your company's finances and not mingled with your personal expenses. So, here’s all you need to know about what you can buy with your business credit card and how to make the most of it.
What is a business credit card?
A business credit card is a payment card that a company or business owner can use to make purchases and manage expenses related to their business operations. Business credit cards function similarly to personal credit cards, with the primary difference being that they are specifically designed for business-related expenses. Business credit cards can help companies keep track of their expenses, manage cash flow, and earn rewards or cashback on their purchases.
What can I buy with my business credit card?
Everyday business expenses
When it comes to running a business, the list of everyday expenses can seem never-ending. Luckily, your trusty business credit card is here to help you manage and streamline these costs, and even earn rewards on your purchases. From office supplies to utility bills, here's how you can maximise your purchasing power:
Office supplies: The lifeblood of any office, supplies like paper, ink cartridges, and pens are essential. Using your business credit card for these purchases not only keeps your office stocked but also simplifies expense tracking.
Equipment: Need a new card machine or some new tools? Your business credit card can handle that. It's a hassle-free way to invest in your business infrastructure and stay productive. Enjoy your limited liability protection if your equipment doesn’t arrive or isn’t as described.
Software subscriptions: Whether it's project management tools or creative software, many businesses rely on subscription-based services. Link these expenses to your business credit card, and you'll have a clear record of your software expenditures come tax season. You could even create dedicated virtual cards for different suppliers.
Utility bills: Keep the lights on and the internet running with your business credit card. Paying utility bills with it not only consolidates your expenses but can also earn you rewards or cashback over time.
By utilising your business credit card for these everyday expenses, you're not only simplifying your bookkeeping but also potentially earning benefits that can further boost your business's financial health.
Travel and entertainment expenses
Business travel and client entertainment are often essential components of growing and maintaining a successful company. Your business credit card can be your trusted companion for managing these expenses efficiently:
Airfare: Whether it's a cross-country business meeting or an international conference, booking flights with your business credit card can earn you rewards, airmiles, or even travel insurance, depending on your card's perks. Every time you use your Capital on Tap Business Credit Card to book a flight you earn points you can redeem points against your balance, for cash, or for discounted gift cards. Upgrade to Business Rewards to convert to Avios Points.
Hotel stays: From cosy boutique hotels to city centre hubs, your business credit card can cover the cost of your stay. Take advantage of a business credit card that offers exclusive discounts on hotels.
Meals: Treating clients or employees to a meal? Your business credit card can help you keep track of expenses, and some cards even offer dining discounts or cashback. It's a professional and convenient way to handle these expenses.
Marketing and advertising investments
Promoting your business is essential for growth, and your business credit card can be a powerful tool for funding your marketing and advertising efforts:
Online advertising campaigns: Whether it's Google Ads or social media promotions, your business credit card can finance your digital marketing campaigns and ensure you stick to your budget.
Graphic design services: Hiring a graphic designer to create eye-catching visuals for your brand? Your business credit card can cover the costs while keeping your finances organised.
Print materials: Brochures, business cards, and promotional materials are a tangible part of marketing. Your business credit card can handle printing costs while providing you with transaction records.
Investing in marketing and advertising with your business credit card not only simplifies expense tracking but can also help you earn rewards or cashback to reinvest in your business's growth.
Technology and equipment upgrades
Staying technologically competitive and upgrading essential equipment is vital for business success. Here's how your business credit card can help:
Computers: Whether it's laptops for your team or desktops for the office, your business credit card can cover the cost, and some cards even offer extended warranties on electronic purchases.
Software: Stay up-to-date with the latest software and licences using your business credit card. It's a seamless way to manage your software expenses.
Machinery: If your business relies on machinery or equipment, your credit card can finance these purchases, helping you maintain efficiency and productivity.
Office furniture: Spruce up your workspace with ergonomic chairs, new desks, or stylish decor. Your business credit card can help create a comfortable and inspiring environment for you and your team.
Keep an eye out for business credit cards that offer purchase protection or extended warranties, as they can add an extra layer of security to your equipment investments.
Inventory and supplies
Maintaining a well-stocked inventory and having essential supplies on hand is crucial for any business. Your business credit card can simplify this process:
Raw materials: Whether you run a manufacturing business or a retail store, purchasing raw materials is a necessity. Use your business credit card to streamline these transactions.
Product inventory: Keep your shelves full and your customers happy by using your business credit card to purchase inventory. It's an efficient way to manage your stock levels.
Packaging materials: Efficient and attractive packaging is essential for shipping products. Use your business credit card for packaging supplies, and you'll have a clear record of these expenses.
Shipping supplies: From postage to packing tape, your business credit card can cover the cost of shipping supplies, helping you streamline your order fulfilment process.
By utilising your business credit card for inventory and supplies, you can optimise cash flow, simplify expense tracking, and ensure your business operates smoothly.
Understanding accepted payment methods
Now that you know what you can buy with your business credit card, let's explore where you can use it. Business credit cards are widely accepted, making them a convenient choice for various payment methods and platforms:
- In-person transactions: Use your business credit card for in-person purchases at retail stores, restaurants, and other businesses that accept credit cards. It's a straightforward and secure way to pay.
- Online purchases: Whether you're buying office supplies from an e-commerce site or booking flights online, your business credit card can be used for secure and efficient online transactions.
- E-commerce platforms: If your business sells products or services online, you can integrate your business credit card with popular e-commerce platforms like Shopify.
- Payment processors: Many businesses use payment processors like Square, Stripe, or PayPal to accept payments. Your business credit card can be linked to these processors for smooth transactions.
Business credit cards offer the flexibility and convenience to make purchases wherever your business takes you, both in-person and online. Their wide acceptance ensures that you can easily manage your finances and make necessary investments to support your company's growth.
The bottom line
In conclusion, your business credit card is a versatile tool that can greatly enhance your company's financial flexibility and growth potential. From everyday expenses to significant investments in technology, marketing, and inventory, it streamlines transactions, simplified bookkeeping, and can even earn you valuable rewards. Its wide acceptance across various payment methods and platforms ensures convenience and efficiency. By using your business credit card wisely and keeping personal and business expenses separate, you can harness its full potential as a crucial asset in managing your business finances and driving its success.
This does not constitute financial advice. To understand the spending parameters of your business credit card, speak with your financial advisor or accountant.