Entrepreneurs rely on business credit cards for everyday expenses like office supplies, internet, and marketing needs – but what many don’t realize is how to take advantage of the rewards and cash back you accrue. If used strategically, credit cards – both business and consumer – can be much more than a means to an end. Below are four tips on how business cards can help effectively offset operating costs and inflationary pressures, reinvest in your business, and fuel business travel opportunities.
1. Offset costs of running your own business
It’s no secret that running a business can be costly – from the monthly internet bills to the constant need for advertising – it seems like there’s always something that needs to be paid. Owning a business credit card can help offset those costs, as they provide cash back on the categories that business owners are using most, like shipping, cable, phone services, and more. Other perks may also include fraud protection, cell phone protection, and no additional costs for employee credit cards, which can help business owners of all sizes, from startups to established businesses.
2. Reinvest in your people
Employee happiness has a direct impact on the health of your business, and business credit cards can be an instrumental tool in building culture and keeping morale high. Sam Rose, Founder & CEO of Mvnifest, is experiencing fast growth and uses every penny from the cashback she earns on her Chase Ink Business Premier card to reinvest in her company’s people. She knows that small gestures can go a long way in making employees feel valued. One easy way to reward employees’ efforts is using business credit card rewards to purchase gift cards from various brands, including hotels, office supply stores, and electronics.
3. Offset inflationary pressures and other economic challenges
Through ongoing inflation challenges, cash-back rewards earned from business credit cards can be put towards pre-purchasing inventory and acquiring essential supplies that can help prepare entrepreneurs for sudden growth opportunities. Sam Rose defines these opportunities as the “Best Day Ever Problem,” and knows they typically come with large purchase orders and fast deadlines. Whether you receive an influx of orders from a viral Instagram Reel or get interviewed on national news, business credit card rewards like cash back can be used as a cushion to empower you to handle fast-paced growth.
Additionally, consistent cash flow is a common challenge many business owners face, so using business credit cards as a cash reserve can sometimes be the difference between keeping your business running versus having to scale back. To counteract these ebbs and flows, owners can use credit cards as another source of liquidity, which can allow them to have a buffer for unexpected expenses or larger purchases. This stability in a fast-changing economic landscape is a significant competitive advantage.
4. Fueling business (and leisure!) travel opportunities
Business owners use miles and points for a variety of reasons, whether it’s flying remote workers in for team-building opportunities or traveling to see clients or conferences and events. They can also use points or miles earned on a business credit card for some well-deserved vacation time to rest and relax. Business credit cards may also come with trip cancellation/trip interruption insurance benefits that provide peace of mind and security in the event that a flight gets canceled, or an unexpected expense pops up.
By following the tips outlined here, you can make the most of your hard-earned rewards and cash back to reinvest in yourself, your employees, and the future of your business.
