Cash back business credit cards
Quick insights
- Business credit cards often offer cash back rewards on business expenses.
- Some business credit cards offer flat earn rates while others have specific categories where cardmembers can earn rewards at an accelerated rate.
- Different types of business credit cards are suited to different types of businesses, from LLCs to small businesses.
Business credit cards can provide a helpful way to separate business and personal expenses. Additionally, they often allow cardmembers to earn cash back rewards. Cash back business credit cards may earn rewards at a flat rate or may offer specific categories where cardmembers can earn rewards at a higher rate.
Let's explore how business credit cards can help you earn cash back on business expenses.
Understanding business credit cards
Business credit cards are similar to personal credit cards, but they are designed to be used for business expenses. They often come with features and benefits that are particularly useful for businesses, such as the ability to issue employee credit cards, detailed expense tracking tools and rewards on business-related spending.
Unlike personal credit cards, business credit cards often require a business credit check and the personal guarantee of the business owner.
Do business credit cards offer cash back?
Yes, many business credit cards allow cardmembers to earn cash back rewards. These rewards are typically a percentage of the amount you spend on the card and can be redeemed for statement credits, gift cards or other rewards. This can be a helpful way to save on business expenses.
Best flat earn rates on business credit cards
Some business credit cards offer flat earn rates, which can be a good option for business owners with varied spending categories. These cards typically have no categories to track, meaning you earn the same rate on every eligible purchase. This can be helpful for businesses with a wide variety of expenses, as it can allow you to maximize your rewards no matter the spending category.
Common cash back categories on business credit cards
Business credit cards frequently feature cash back categories geared toward purchase categories that businesses are likely to make. Here are some of the more common options:
- Office supply rewards: Cards that offer bonus rewards at office supply stores can be a good fit for businesses that have significant office-related expenses.
- Telecommunications rewards: Some cards offer bonus rewards on telecommunications services, which can benefit businesses that spend heavily on phone or internet services.
- Travel and dining rewards: For businesses that require frequent travel, cards that offer bonus rewards on flights or hotels can be beneficial, while cards that offer rewards at gas stations can be a good fit for businesses that have significant transportation expenses.
- Dining rewards: Some cards offer rewards on dining at restaurants, which can be an important benefit if you have frequent business meals.
Best perks of business credit cards
Business credit cards often come with a variety of perks that can benefit businesses. Here are a few examples:
- Free employee cards: Many business credit cards offer free employee cards, allowing the business to earn rewards on employee spending.
- Travel benefits: If you or your employees travel for meetings, conferences, client visits or other business activities, you might want to take advantage of some of the travel benefits associated with some business credit cards. These can include bonus rewards on flights or hotels, access to airport lounges or travel insurance, no foreign transaction fees and other perks and benefits related to corporate travel.
- Expense tracking tools: Some cards offer detailed expense tracking tools, making it easier to manage business finances.
- Purchase protection: Many cards offer purchase protection, which can cover eligible purchases against damage or theft for a certain period of time.
- Extended warranty coverage: Some cards offer extended warranty coverage, which can extend the manufacturer's warranty on eligible purchases.
- 0% introductory APR: Cards that offer 0% introductory APR periods can be beneficial for new businesses or small businesses looking to make large purchases and pay them off over time.
The bottom line
Cash back business credit cards can be a powerful tool for businesses, helping to save on expenses and improve cash flow. By understanding the features and benefits of different cards, you can choose the one that best fits your business's needs and spending patterns. Whether you're an LLC, a small business or independent contractor, there may be a cash back business credit card that's right for you.
