Common expenses to consider putting on a business credit card
Quick insights
- You can generally put most business expense on a business credit card.
- Travel expenses, client dinners, office equipment and utilities are some examples of what you can charge to a business credit card.
- For large purchases you plan to pay off in installments, a loan may offer better terms than a business credit card.
A business credit card can help fund your business expenses by providing access to a line of credit. These cards can help separate personal and business expenses, and some cards offer accelerated rewards earning potential on common business expenses.
Below, we’ve outlined some of the expenses that you may want to consider putting on a business credit card and when another payment option may be preferable.
Business expenses to consider charging to a business credit card
As long as the vendor accepts credit cards, you can generally put any business expense on your business credit card. While you can charge any business expense to the card, you can help avoid additional debt by making educated decisions about how to use the card and having a plan to pay it off.
Business credit cards may offer rewards to offset costs, protection benefits that give you coverage in eligible circumstances and tools to help you manage business expenses. When your business incurs certain expenses, these features could be a reason to use a credit card over other payment methods.
Here are a few examples of common business expenses that business owners might charge to their card:
Travel expenses
Expenses incurred during a business trip can be charged to a business credit card. Examples of potential business travel-related expenses include:
- Transportation costs: Flights, public transportation, taxis, rideshare services, rental cars, gas, tolls and parking costs to arrive at your business trip destination.
- Accommodation: Hotels or rental properties for your business stay or conference rooms and event spaces for business events.
- Meals: Dinners out, room service, snacks and other refreshments for yourself or any employees or catering for business events.
- Other business travel expenses: Printing materials for a conference booth, laundry services to help you look presentable or renting technology for a sales pitch.
When booking hotels or rental cars, a credit card is typically required to secure the reservation.
Business travel credit cards often offer travel rewards and benefits, including accelerated rewards in specific spending categories. For example, a card might offer 3x points on eligible purchases such as flights and hotels.
Plus, the card may provide travel protection benefits such as rental car coverage or reimbursement for eligible expenses if things go wrong during a trip.
Office supplies, equipment and software
From sticky notes to desktop computers to software subscription services, you can charge any supplies or tools your business needs to a credit card.
If your business credit card account includes Extended Warranty Protection and Purchase Protection, the manufacturer’s warranty may be extended by a year or you may get coverage against damage or theft within a specified timeframe for eligible purchases.
This coverage may make you feel more confident when purchasing pricier office equipment like laptops.
Marketing and advertising
Investing in advertising and marketing can help you increase brand awareness and reach new customers. And because these categories are considered business expenses, you can charge these expenses to a business credit card. Some examples of these expenses include buying display ads on websites or apps or paying a monthly subscription fee for an email marketing platform.
Business credit cards may even offer rewards for these expenses, which could help offset the cost of your next marketing campaign.
Utilities and rent
If you pay to rent a facility or office and use utility services to keep your business facilities running, you can charge these bills to your business credit card.
Examples of utilities you can charge to your card include:
- Electric and gas
- Water and sewage
- Internet, telephone and cable
Some cards offer rewards for certain utility expenses. For example, a card may offer 3x points on cable, internet and phone services.
Entertaining clients
Dining and other expenses related to entertaining clients can be charged to a business credit card. Some business credit cards offer rewards on dining out, allowing you to earn points or cash back on these purchases.
What not to charge to business credit cards
Mixing personal and business expenses on a business credit card may expose you to personal liability for business-related judgments.
Business credit cards also typically have higher interest rates than many business loans. For major purchases that are not paid off immediately, the total interest paid on a credit card may be higher compared to a loan with lower rates. Loans and credit cards each have different terms and costs, which can affect the overall expense of financing large purchases.
Additionally, some smaller vendors may not accept credit cards.
If your business credit card account offers employee credit cards, you can establish expense management policies that specify the expenses employees can and cannot charge to the card.
In summary
You can charge most expenses related to running your business to a business credit card. Some examples include marketing and advertising, office supplies, equipment, travel, dining, utilities and rent.
Some credit cards offer rewards, protection benefits and expense management tools, providing added incentive to use the card for purchases you were planning to make anyway. For major purchases you plan to pay off in installments, a loan may offer more favorable terms.
