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Benefits of a Business Credit Card for Small Business Enterprises

Stephen Hart

Stephen Hart

Founder - Cardswitcher

Former - Chief Financial Officer @ Worldpay

A business credit card is an essential tool for any start-up or small business enterprise.

They can help you simplify and track your expenditure, while offering credit to buy necessary equipment and supplies to keep your business running. A flexible source of financing, business credit cards even offer rewards that contribute to the success of your enterprise.

But with so many cards available, it can be challenging trying to choose the right one for your business.

To help you decide, we’ve created a handy guide with all the benefits of a business credit card, and the key features you should consider to select the right card for you.

Benefits of a business credit card to small business operators

Credit cards can be a vital source of funds for new and small businesses, but there are numerous benefits to a business credit card beyond the instant credit available. You can:

  • Track your monthly expenditure - Increase accountability and stay on top of what you’re buying and why! Business credit cards offer quarterly and year-end summaries, plus access to accounting programmes like QuickBooks means you don’t have to wait for yearly audits.
  • Avoid the hassle of employee expenses - Issuing business credit cards to your employees can reduce the hassle of constantly reimbursing them. You can even freeze cards or set limits on spending, and at the end of the month receive one bill illustrating any employee expenditure.
  • Earn rewards - Purchases made using certain types of credit cards earn rewards for your company like merchandise, gift cards, discounts on business travel, cash backs, hotel stays, and statement credits.
  • Shop for your business with ease - As your venture grows, you’re likely to require more funds for essential purchases. Since cards carry high credit limits (especially if you have a high credit rating) you have easier access to everything you need to expand and improve your business! You also eliminate potential loss of time and money with the risk of bad or bounced cheques.

businessman with credit card

How to choose the best credit cards

When choosing a credit card for your business, it’s much like getting into a long term relationship with your credit provider. You need to pick the best fit for your business now, and as it expands in the future.

It generally doesn’t matter if it’s a Visa or Mastercard - both operate very similarly. American Express sometimes poses trouble as not everyone accepts them, so do your research!

There’s never one right choice, as it will vary depending on the business, but we’ve compiled some of the key aspects to consider:

  • Determine your creditor’s transparency level - Avoid any hidden fees by going for a provider that’s upfront about all the costs. Choosing a creditor with rate guarantees and a pricing model that’s aligned with your venture will get you the best value for your money.
  • Choose a company with positive reviews - Customer feedback says a lot about a company’s practices, so it’s a good idea to review public ratings. Sites like TrustPilot are a good place to start. This can help you work out whether providers comply with the necessary authorities and whether they are trustworthy.
  • Consider foreign transaction fees - If your business requires you or your employees to travel overseas frequently, it makes sense to choose a card that won’t charge you for any foreign transactions. Some cards even offer bonuses and rewards when you rack up a number of miles!
  • Go for a company with honest representatives - Credit providers can offer services for short-term commitments to avoid paying a lot of money if things don’t go to plan and your enterprise doesn’t live up to its promises.
  • Understand all the charged rates and fees - Charges can include markups and interchange fees to compile your mandatory expenses. Annual fees are also pretty common on business credit cards and can affect the overall cost.

Before going ahead with any card, there are a couple of extra points worth noting.

As a new business or start-up, it can be difficult to take out a business credit card with little or no credit rating, and this can occasionally mean that if you get approved, you may have a lower spending limit than is typical.

Particularly as a small business, customer support is crucial for quick troubleshooting. We recommend going for a provider that is easily reachable to via phone, email or chat, should you have any difficulties.

different credit cards


There are so many benefits to a business credit card. They offer easy access to purchase goods and services to expand your growing business. They are an easy way to manage employee expenditure for work purposes and they help you track business-related finances.

There are a lot of different options when it comes to choosing the right card for your business. Small business enterprises have unique needs compared to more well-established firms, so it’s important to do in-depth research to determine which credit cards are ideal for your business.

If you’re a sole trader or freelancer you’ll want to look into cards like Capital’s On Tap Business Credit Card, which offers clear cashback rewards, and a quick and easy application process.

For startups, a better choice may be the Barclays Business Flex Credit Card. Free of any annual fees, it offers up to 56 days interest free purchases when you pay in full and on time!

Whichever card you decide on, always do your research, and keep our recommended criteria in mind.

Whilst sorting out the best method to make payments from your business, you should also consider how you take payments to your business. With Cardswitcher’s card processing fee comparison tool, you can save up to 40% on your debit and credit card fees! Give your business the best start and let us match you to the best providers on the market.

We’ve also written guides on the different payment methods your business should cater to, as well as information specifically on online payment systems.

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Written by:
Stephen Hart

Stephen Hart

Founder - Cardswitcher

Former - Chief Financial Officer @ Worldpay

Stephen brings a wealth of experience honed through years in the financial sector, particularly in the card processing payments industry. His illustrious career spans key roles at PwC, Natwest, and the role of CFO at WorldPay, before going on to found card processing comparison site, CardSwitcher. He is passionate about helping growing businesses to understand the card processing landscape so they can make savvy financial decisions.