What can I buy with my business credit card?
Quick insights
- A business credit card works similarly to a personal credit card, but it may come with features and reward structures tailored to the needs of business owners.
- You can use the card to make many purchases businesses commonly make, from everyday office supplies to equipment to business travel expenses.
- There are a handful of purchases that you may not want to make with a business credit card, such as personal expenses or large purchases where a loan might offer better terms.
You may know that a business credit card could offer you a convenient way to make purchases for your business, but what kinds of purchases can you make? Business travel expenses, inventory and supplies are just some of the many purchases you could make with a business credit card.
Read on to learn more about which purchases you may consider putting on your business credit card.
What is a business credit card?
A business credit card is a type of card that companies or business owners use to make business-related purchases. Having a credit card specifically used for your business purchases may allow for better tracking and expense management. Typically, business cards have higher credit limits than personal credit cards.
For tax and bookkeeping purposes, businesses usually use these credit cards solely for business purchases and avoid putting any personal expenses on the card.
Business credit cards may offer you many cardmember benefits, including the ability to:
- Earn rewards on purchases in business-related categories
- Access comprehensive bookkeeping tools
- Manage cash flow
Types of expenses to put on my business credit card
You can charge nearly any business expense to your credit card if the vendor accepts this payment. Your card may even offer rewards on some business-related spending categories. Here are some common purchases that businesses make with credit cards.
Everyday business expenses
You probably have some day-to-day expenses, which are necessary to keep your business running. Businesses commonly pay for these purchases with a business credit card. Here are some everyday business expenses you may consider putting on a credit card:
- Utility bills
- Offices supplies
- Equipment
- Software subscriptions
Typically, a credit card can be a convenient payment option for these routine, relatively small purchases, for everything from a project management software subscription to the internet bill to a new office printer.
Business travel expenses
If you or your employees frequently travel for work or entertain clients, a business credit card can help you make these purchases.
- Flights
- Hotels
- Rental cars
- Gas
- Ride share services
- Dining
Business credit cards may give you the option to request employee credit cards, which could make it easier for traveling employees to make necessary purchases and avoid a lengthy, complicated reimbursement process.
If you have travel rewards business credit card, you may even get rewarded for these purchases, get access to discounts and enjoy perks like complimentary airport lounge access.
Inventory and supplies
A business credit card may be a convenient option for purchasing what you need to make and package products. From raw materials to inventory to packaging to shipping costs, a credit card can help you make these important purchases.
Marketing and advertising expenses
It may take more than great products or services to grow your business. Marketing and advertising can help you stand out in a crowded market, and you can use your credit card to make these important purchases that help drive growth.
- Digital marketing expenses: Social media promotions, Google Ads and more can be purchased to help make your next campaign a success.
- Print marketing materials: Brochures, business cards and spec sheets are just some of the printed materials that can help your team make the sale.
- Graphic design services: Professional design services may help build your brand through web content, digital ads and print materials.
Some credit cards may offer rewards for spending in this category.
Getting cash back rewards for business card expenses
Just like personal credit cards, you can find business credit cards with a variety of reward structures, from points to cash back. These cards may offer rewards for common spending categories that businesses typically use.
Cash back business credit cards allow you to earn cash while making eligible purchases. They usually award you with a small percentage of what you spend in certain categories. For example, a business credit card might offer five percent cash back at office supply stores or on certain utilities purchases.
Alternatively, some business credit cards allow you to earn and redeem rewards for travel, shopping and more.
What not to charge on a business credit card
You may make nearly any purchase with a business credit card, as long as you have enough credit and the vendor accepts your card. However, in some cases, using your business card may not be the ideal choice.
Here are a few examples of purchases you may want to avoid making with your business credit card.
- Major purchases: For more favorable terms with less interest, you may want to secure a loan for any expensive purchases that you'll need to pay off in installments.
- Personal expenses: Businesses generally avoid mixing personal and business expenses on a single credit card. It can make tax season more challenging and potentially opens the door for you to be personally liable for judgments against your business.
- Prohibited expenses: Companies often have guidelines about which purchases are and are not allowed. If you make a prohibited purchase on a company card, you may need to pay it back.
If your business needs access to credit, consider comparing these business credit cards to find the right one to achieve your short-term and long-term goals.
In summary
Some businesses find that a credit card is a convenient way to access credit and make important purchases. You may find the benefits of a credit card help you maximize rewards.
