Who Are Small Business Credit Cards Good For?

(Submitted by Brad Bapst, Director, Small Business Development Center, OSU South Centers)

While technically anyone can apply for a business credit card, these cards are usually best for small businesses and individuals who fall into the following categories:

• Self-employed individuals who travel frequently for work and want to rack up rewards
• Freelancers who need help managing their cash flow
• Consultants who may travel or entertain clients
• Small business owners or freelancers who experience irregular cash flow throughout the month
• Doctors or dentists who are part of their own practice
• Financial advisors
• Salespeople who travel for work and want to maximize travel-related rewards
• Business owners who spend heavily on office supplies and equipment

american-express-89024 (2)People who fall in these categories all have certain expenses that can be separated and classified as “business” expenses. These type of expenses can include things like meals, required travel, advertising, business development, entertainment and office space.

Meanwhile, certain types of individuals are employed by an outside company, yet asked to front expenses like gas, meals and parking. Their company is then expected to reimburse them for their purchases, but this arrangement doesn’t preclude them from getting a business credit card. In fact, this may be the type of person who could benefit from a business card the most. By using a card for their business-related expenses, they keep their expenses on a separate tab without messing with their personal cash flow.

Here are some other ways almost anyone could benefit from having a business credit card:

• Individuals who spend a lot in specific categories, such as dining and gas, could choose a card like the SimplyCash® Business Card from American Express, which offers 3% cash back in one main category of your choosing
• Like we mentioned above, individuals who are expected to pay for work-related expenses then get reimbursed can use a business card for those expenses instead of paying for everything with their own money
• Salespeople who drive a lot could benefit from a card with increased earnings on gas purchases, such as the SimplyCash® Business Card from American Express or the Ink Cash® Business Credit Card
• Businesses who spend a lot of money at office supply stores have the opportunity to earn 5 points per $1 on up to $50,000 in office supply purchases each calendar year with the Ink Plus® Business Credit Card

Source: Simple Dollar Website Excerpt taken from the 12-9-2015 The Best Business Credit Cards of 2016 article by Michael Gardon.