How to use a business credit card

Running a business isn’t always easy—but the right tools can make a big difference. Take a business credit card, for example. It can help you stay on top of expenses, earn valuable rewards and build your company’s credit profile—all while keeping your business and personal finances separate.

Plus, with responsible use, a business card can help improve your company’s cash flow and provide the financial flexibility you’ll need when unexpected expenses pop up.

Keep reading to learn more about using a business credit card to support your business, and how to choose the right one for your business needs.

What you’ll learn:

• Business credit cards can simplify how you track expenses, increase your financial flexibility and help you establish your credit profile.

• Business credit cards can also help you keep up with recurring payments, cover short-term expenses and maintain a positive cash flow.

• To choose the right card for your business, you need to determine the scope of your business needs.

There are a few reasons why business owners may need a business card, including:

• It helps keep your finances separate. A business credit card can help you separate your business and personal purchases, making expense tracking and tax preparation easier.
• It can give you access to much-needed cash flow. Business credit cards can serve as a dedicated line of credit for business purchases, helping business owners manage cash flow and cover unexpected costs.
• It provides the opportunity to earn rewards and benefits. Many business credit cards offer rewards and benefits tailored to business owners, such as employee spending controls and travel rewards.
• It builds your business’s credit profile. Establishing a strong credit history may open doors to better financing opportunities in the future.

A business card can help you manage company expenses, streamline cash flow and earn rewards for purchases essential to running your business. 

Here’s how some business owners use their cards:

• Recurring payments: A business credit card can help with recurring expenses like subscriptions, memberships and travel. It ensures timely payments without disrupting your business’s cash flow.
• Covering short-term expenses: A business credit card can be a lifeline for managing unexpected or short-term expenses such as large purchases, urgent repairs or seasonal inventory fluctuations.
• Keeping current: Timely payment of financial obligations is important for smooth operations. A business credit card offers the flexibility to manage cash flow and stay on track with payments. 

Here are some strategies for using your business card responsibly and maximizing its benefits:

Setting guidelines, such as spending limits and what constitutes an allowable expense, can help ensure that employee spending aligns with your company policies. This can ultimately lower the risk of misuse and improve overall expense management.

Avoid late payments, and do your best to pay your balance in full each cycle. This can help you prevent higher interest rates and fees, which could harm your business’s overall financial health.

Business credit cards often offer rewards and benefits. These rewards can come in many forms, from cash back to business travel rewards and more. These rewards can accrue through simple day-to-day business purchases and from your recurring business expenses and then can be used to reinvest in your business.   

Capital One has a variety of business cards that come standard with benefits and features like:

• No foreign transaction fees

• Access to Accounts Payable

• Free employee cards

• Virtual card numbers

In addition to these, each Capital One card offers extra rewards and benefits.

If you’re looking for a business credit card that gives you cash back, you may want to consider our Spark line of business credit and charge cards. They offer as much as 2% back in everyday rewards, some with no annual fees. 

Interested in travel rewards? Capital One offers an array of cards designed with the business traveler in mind. Venture X Business offers 2X miles on every purchase and even bigger rewards on hotels and flights booked through Capital One Travel. Spark 2X Miles allows cardholders to earn unlimited 2X miles on every purchase, plus a 50,000-mile bonus when you spend $4,500 in the first three months.

Whether you’re looking for business or travel rewards, chances are you will find a Capital One Business card that addresses your needs. Need help deciding? Start by determining whether your business could use travel rewards or cash back.

Generally, business credit cards will be connected to your personal credit, so keeping credit utilization low and making payments on time can significantly protect your personal credit scores. 

If you’re looking for a quick way to see which Capital One Business cards you qualify for—without impacting your personal credit—you may want to consider getting pre-approved. Our pre-approval tool lets you compare cards, offers and terms you’re eligible for, quickly and conveniently. Best of all, it won’t affect your credit score.

Understanding your spending habits and business needs can help you choose the right card for your business.

If you plan to pay off your balance every month, you may consider prioritizing rewards and fees instead of the lowest interest rate. However, if you feel you might carry a balance, a low rate can lead to significant savings. 

You may also consider the rewards offered—cash back, travel benefits or merchandise—and choose a card that aligns with your business needs.

Still have questions about using a business credit card? Here are some frequently asked questions:

Using a business credit card can help you keep personal and business finances separate, simplify expense tracking and earn rewards. 

Business credit cards can offer financial flexibility, cover unexpected costs and help you build your business’s credit profile. With the right card, you can also maximize rewards to enhance and support your business’s growth.

Ready to take the next step? Compare business cards from Capital One to discover features and benefits that can support your business growth.