The Top 5 Benefits of Business Credit Cards for Employees

The Top 5 Benefits of Business Credit Cards for Employees

Whether you’ve been running a business for a number of years, or have just founded a start-up company, you may have thought about getting business credit cards. Credit cards for your business can be a great way to make sure that your employees can access funds when they need to.

Around 67% of businesses are already enjoying the benefits of a business credit card, and that number is rising with the more favorable terms that credit card companies can offer. Capital on Tap is a business credit provider that’s growing fast, giving small and mid-sized businesses access to capital.

The benefits of business credit cards go beyond simply having flexible access to credit. Credit cards also offer you opportunities to boost your credit rating, rewards, payment protection, and more.

Business credit card payment
photo credit: Kampus Production / Pexels

In this article, we’ll go over the main reasons why you should provide your employees with business credit cards.

What is a Business Credit Card?

A business credit card is an invaluable tool for almost every business. Credit cards for businesses can be similar to personal credit cards as they allow users to access credit up to an agreed limit. Business credit cards can have higher interest rates than personal credit cards, although you get other benefits with them.

Why Have a Business Credit Card?

Business credit cards can be very helpful in allowing you and your employees to access funds when needed. This can be important during times of low cash flow, or when it’s just more convenient to use a credit card rather than handling cash payments. Our top five benefits for employee credit cards include the following.

1. Keeping business and personal expenses separate

Having a credit card for business purposes is a great way to keep different expenses and cost centers separate. This makes it easier for you and your employees to note what they’ve spent on work-related items compared to their own personal expenditures or even different areas of the business. It’s also convenient as you won’t have to reimburse employees for the money they spend on work matters. This can save time and can eliminate the need for extra paperwork.

2. Tracking cashflow

Using a credit card can help you keep all your receipts and expenses information in one place. This makes it much easier for you to track what is being spent and what on. Having all this information in one place makes it much more convenient to keep an eye on your finances, as well as note changes in spending. This means you’ll easily be able to see if your expenses suddenly increase.

“It’s vital to track where your money is going, especially if you have more than one credit card in use. Modern credit cards offer a wide range of spending management tools that let you see, at a glance, the different types of outgoings your business has. This lets you easily see where you can cut back, or where you need to allocate more budget.”

– Damian Brychcy, COO and US MD of Capital On Tap

Damian Brychcy, COO Capital on Tap

3. Building credit for the business

Just as individuals do, businesses should aim to build their credit rating. Your company’s credit rating shows how good your company is at paying back debts. Increasing your company’s credit rating will make lenders more likely to offer more lines of credit with lower interest rates or lower fees. Having employees use your credit cards and pay off the balance promptly will improve your company’s credit score. This is vital, as almost half of consumers feel their credit score is too low and doesn’t represent their borrowing habits.

4. Cashback and other benefits

There is a wide range of benefits that credit card companies offer in order to attract or retain customers. Cashback, air miles, and a variety of loyalty-point rewards could benefit your business with the result that you get something back every time your company has to make a purchase. If you already have to spend that money on some item for your business, it’s worth getting any additional benefits that you can.

5. Purchase protection

Credit cards often give you much better payment protection compared to other payment types. This could help if, for example, you have to book flights to visit a potential client, but the flight gets canceled. Having payment protection can help prevent your business from having to take the financial blow if something goes wrong.

Other Benefits of Business Credit Cards for Employees

There are other reasons to give business credit cards to your employees, such as:

  • You might find better interest rates and deals than on some business loans
  • Some cards can automatically put payments into categories so you can see where your company’s money goes
  • It can be easier to get a business credit card compared to a business loan
  • It can be a flexible payment option that is accepted almost everywhere
  • There are often easy options to limit employee spending if you need to
  • It can be more convenient for your employees than having to carry cash.

How do I Make Sure my Employees Use Their Credit Cards Properly?

If you’re worried about how your employees might use your company credit cards, this is not an uncommon concern. However, you can easily set out rules with your employees about when they can or can’t use the cards. Some business credit cards will also let you put limits on the amount that can be spent in one interaction, which can make it simple to avoid any large accidental overspends.

Is it Hard to Get a Business Credit Card?

No, it’s not hard to get a business credit card. In fact, it can be easier to get a credit card than a business loan. However, some credit card companies might have criteria that you need to consider before they will grant your application for a credit card. For example, you might have to have a certain length of trading history, or you might need to meet a minimum monthly revenue amount.

Is it Better to Give Employees Credit Cards or Debit Cards?

The typical approach for companies is to give their employees credit cards for any work-based expenses that they might need to cover. This is usually because credit cards have better payment protection than debit cards. Credit cards are also more likely to offer benefits such as cashback, air miles, or points.

“Debit cards, reimbursement, or petty cash are no longer the go-to for business expenses. With credit cards, businesses can spread their expenses and get capital that they might not be able to get through bank loans. Combined with the safety aspect, credit cards are invaluable tools for businesses and employees.”

– David Luck, co-founder and CEO of Capital on Tap

small business credit card

Business Credit Cards for Employees: Summary

If you run a business, providing credit cards for your employees to use can be incredibly helpful. Using credit cards can help you keep your business payments all in one place, and it can make it simple to track expenses. You can also benefit from payment protection and rewards when you use a business credit card, plus you can use the card to start building your company’s credit rating, making it more eligible for future loans or lines of credit with attractive terms.

Ivan Widjaya

Ivan Widjaya is the Owner/Editor of, as well as several other blogs. He is a business blogger, web publisher and content marketer for SMEs.