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Use your business credit cards to maximise rewards

6 min read

25 November 2019

Many business owners have company cards but are you using yours to reap the best rewards?

There are many different ways a business can use its credit card to maximise rewards such as cashback, discounts, hotel and flight upgrades.

Examples of rewards from credit cards include:

• Cashback

• Nectar points

• Avios

• Hotel points

• Supermarket points

The expenses made by a company or business are likely to be far greater than an individual consumer’s – since they can spend on things such as travel, accommodation, office rent, equipment, computers and more.

So if you run a growing business or are self-employed, you are more likely to maximise your points and earn rewards.

Why are business credit cards useful?

A business credit card can be an incredibly useful tool for companies, helping to finance various different purchases, and avoiding any shortages in cash flow.

A business credit card can also make it easier to pay for everyday expenses by providing staff members with cards to pay for their business expenses and travel.

Whilst these rewards will be entirely dependent upon the type of credit card, there are certain things businesses can do be ensure they make the most out of their provider’s rewards.

Choosing the right provider

When it comes to maximising the rewards from a business credit card, choosing the correct provider is vital. Different credit cards will offer different rewards, and there are things to consider such as:

• Is there a monthly fee?

• Do you need to spend a minimum each month?

• Are there introductory offers?

• What rewards are available?

If they offer M&S Rewards – do I even shop there? Some cards will have specific deals with particular airlines or hotel groups, such as Avios (British Airways), Virgin Atlantic or IHG hotels.

Whilst you can use multiple cards for your business, if you can focus your energy with one provider and one rewards system, you can gradually build up 10,000, 50,000 or 100,000+ points with one rewards provider.

So if you like to fly with British Airways, your team can build up companion vouchers, upgrades, lounge access and more.

Business credit card provider Capital on Tap offers 1 point which can be redeemed for Avios for every £1 (or 1% cashback) through their On Tap Club Card, and 1 point which can be redeemed for Avios for every £2 (or 0.5% cashback) on their Capital Club Card.

Use introductory offers

Many card providers will give extra cashback or points for any extra spending in the first couple of months.

For instance, a typical offer can be an extra 5,000 points if you spend £3,000 in the first month. This could be a good time to get a card if you know that you have big purchases or spending ahead.

But it is also important not to get too many cards and dilute your opportunity to build up points and get the biggest rewards such as free flights.

Find expenses that can be paid for by credit card

There are a lot of business expenses that can be paid for on a business credit card.

Of course, you have any flights or hotels used for staff members, but if your team take the train every day, most business credit cards come with additional cards for employees – so it could be worth giving them a business card on their daily commute.

There are office equipment and necessities such as computers, chairs, paper, teas and coffees.

Marketing expenses

Furthermore, consider if any marketing expenses can be put through a business credit card, such as Google Adwords, Facebook Advertising, web hosting, email services and even paying any consultants or freelancer by credit card.

Although not every outlet will accept American Express or credit cards altogether, you can connect your account to Paypal or Stripe and pay individuals or companies through this medium – and still gain all the spending and points too.

Weigh up the other costs

Business credit cards come with different rates and fees – and for those providers that offer big rewards, there is typically a monthly subscription fee or an upfront fee to start the account.

If you are making regular and large business purchases, these fees will probably not be detrimental.

But if you have too many cards, do not make any payments for a while or go into arrears – you could be paying unnecessary costs. Any late payments for business credit cards can cost up to 24.9% APR – so if you are not good at paying off the balance each month, this can become costly and outweigh the benefits of any perks.