A guide to business credit cards for construction companies
Quick insights
- Choosing a business credit card that matches your construction business’s spending habits could help you maximize rewards.
- Features like higher credit limits, rewards, expense management tools and employee cards may support the financial goals of construction companies.
- Some business credit cards offer rewards for common expenses that construction businesses incur like fuel, travel, office supplies and utilities.
Running a construction business can pose some unique operational challenges, from paying significant upfront costs for building materials to tracking spending across multiple projects. Business credit cards offer features that could help construction businesses overcome these challenges and support growth.
For instance, business credit cards generally have higher credit limits, which may aid with the initial costs of construction projects. Let’s take a closer look at business credit cards for construction businesses, including features to look for and some credit card options.
How construction companies can benefit from business credit cards
Business credit cards can have benefits for companies in a range of industries, potentially offering a way to build business credit, separate personal and business expenses and earn rewards. For construction business owners, these cards can help with some industry-specific challenges. Here are some ways these cards might support a construction company’s operational needs:
- Managing project expenses: Purchase the building materials, tools and supplies needed to keep projects on schedule.
- Track and separate project costs: It may be possible to add notes, tags or project codes to each transaction, either through the credit card issuer’s portal or by integrating the account with accounting software.
- Cash flow fluctuations: With the card’s line of credit, business owners can pay for expenses during seasonal slowdowns or when clients stagger payments.
- Streamlining vendor payments: Some suppliers and subcontractors accept credit cards payments, potentially enabling quick transactions and automated payments.
- Equipment repairs and maintenance: If machinery breaks down unexpectedly, a credit card provides access to funds for repairs or replacement.
4 Features of construction business credit cards to look for
Here are a few common business credit card features for construction business owners to consider:
1. Higher credit limit
Business credit cards tend to have higher credit limits than consumer credit cards, which may be helpful with cash flow. Additionally, credit cards allow business owners to make larger purchases because of the credit limit.
2. Construction-friendly rewards program
Business credit card rewards programs could allow cardmembers to earn points or cash back to help offset costs. Many rewards business credit cards earn cash back at a flat rate or earn accelerated rewards in select categories.
Here are some of the spending categories business credit cards might offer:
- Office supplies and equipment
- Gas stations
- Dining
- Internet, cable and phone
- Travel
- Advertising
Let’s say Jamal and his team frequently complete construction projects in distant locations, resulting in high gas station and hotel expenses. He has a business credit card with accelerated rewards in these spending categories. As he and his team travel for these projects, he earns points on fuel and hotel stays, which he plans to redeem for future trips to lodge his team.
Considering business credit cards with rewards programs that match business spending habits may be helpful. This way, business owners can earn rewards on their routine purchases.
3. Expense management tools
Business credit cards often come with tools for managing expenses. Some cards automatically categorize expenses, potentially aiding with financial reporting and tax preparation.
For example, John uses his business credit card for all his construction company’s expenses, including materials, equipment rentals and travel expenses for his team. Using the detailed transaction records from his card account, John can categorize expenses by project, helping him track spending and identify areas where he can reduce costs.
4. Employee credit cards
Business credit cards may offer complimentary employee credit cards, which allow authorized employees to make purchases on behalf of a business. Employee credit cards offer a potentially time-saving alternative to manual reimbursement processes.
These cards typically earn rewards on eligible purchases for the primary cardmember’s account. Plus, it’s possible to set spending limits on employee credit cards and monitor spending in real time.
For instance, Lisa has been issued an employee credit card to use as she manages construction projects. She knows the card’s monthly spending limit is based on the project’s budgetary constraints and that her spending is reviewed by the business’s owner in real time. Knowing that these limits are in place, Lisa is incentivized to seek cost-effective solutions and negotiate deals with suppliers.
Explore credit cards for construction businesses
Looking for a business credit card with features to support your business’s operational efficiency? Explore Chase for Business® credit cards, which offer a range of rewards, benefits and tools that could help you manage cash flow and keep your next construction project under budget.
In summary
Construction business owners looking for a business credit card should focus on key features such as credit limit, rewards programs, expense management tools and options for employee cards. Selecting a card that aligns with your company’s unique needs and goals can help streamline financial operations and maximize benefits for your business.
Business credit cards with rewards on common construction expenses like fuel, travel, office supplies and utilities could be beneficial. Several Chase for Business credit cards offer rewards in these categories.
