Managing Startup Expenses with Credit Card Rewards
For entrepreneurs, every expense counts, whether operating from home or launching a physical location. Particularly for credit card reward aficionados, there is a silver lining: numerous business expenditures can accrue rewarding credit card points, stretching from equipment purchases to valid tax payments.
By strategically using the right credit cards for eligible business expenses, users can acquire rewards from routine purchases while simultaneously working towards welcome bonuses and annual spending goals. It’s crucial, however, to ensure balances are paid in full; fees should not overshadow the rewards gained.
Below is a selection of tips designed to optimize your rewards potential and assist in selecting suitable credit cards for your business needs.
Top Business Credit Cards
Selecting the appropriate business credit card enables you to earn rewards on everyday expenses, complemented by valuable perks like travel benefits and purchase protections. Below are some of the leading options catering to businesses of various sizes:
- American Express Business Platinum: Earn 5 points per dollar on airfare and prepaid lodging via amextravel.com, 2 points on specific business categories and purchases over $5,000 (limited to $2 million in eligible purchases annually, then 1 point per dollar). Annual fee: $895.
- Capital One Venture X Business: Earn unlimited 2 miles per dollar on purchases, 10 miles per dollar on hotel and rental car bookings, and 5 miles for flights reserved through Capital One Business Travel. Annual fee: $395.
- American Express Business Gold: Earn 3 points per dollar on the first $150,000 spent on travel and selected business categories annually, 1 point on all other purchases without limits. Annual fee: $95.
- Capital One Spark Cash Plus: Earn 5% cash back on hotel and rental car bookings through Capital One Business Travel, alongside 2% cash back on all other purchases. Annual fee: $150.
Each of these cards possesses distinct spending requirements and earning structures, making the ideal choice reliant on your business’s expenses and preferences for cash back or transferable points and miles.
Earning Points on Housing Costs
For those establishing a business from home, Bilt offers a way to earn rewards on personal housing expenses. Their loyalty program permits you to accrue Bilt Points through rent or mortgage payments.
You can maximize rewards with any of their three Bilt credit cards:
Points can be transferred to Bilt’s loyalty partners or utilized for bookings via their travel portal. Each Bilt card allows up to 1.25 points per dollar spent on qualifying rent and mortgage payments, with no transaction fees. By spending the equivalent of your monthly housing payment or more on everyday purchases, you can earn 1.25 points on those expenses each month.
It is essential to note that Bilt’s housing rewards apply solely to eligible residential properties, excluding commercial office spaces.
Maximizing Rewards on Office Supplies
The American Express Business Cash Card provides 5% cash back on the first $25,000 in annual combined spending at office supply stores and on internet, cable, and phone services.
Additionally, the card offers 2% cash back on the first $25,000 spent on gas and restaurant purchases, reverting to 1% thereafter. There is also a general 1% cash back on all other purchases.
Combining cash-back rewards with points accrued on cards eligible for transfers to Chase’s airline and hotel partners can enhance flexibility in redeeming rewards, particularly through Chase Ultimate Rewards points.
The Ink Business Preferred card also earns 3 points per dollar on the first $150,000 spent in various categories such as travel, shipping, and advertising, offering businesses different options tailored to their spending patterns.
Boosting Earnings on Advertising Expenses
If advertising forms a significant part of your business budget, selecting a card with bonuses on advertising can amplify your rewards. Consider the following cards:
- American Express Business Gold: Earn 4 Membership Rewards points for every dollar spent in your two highest spending categories each billing cycle, which may include advertising with U.S. media providers (limited to $150,000 in eligible purchases per year). Annual fee: $375.
- Ink Business Preferred: Earn 3 Chase Ultimate Rewards points on the first $150,000 in combined spending across multiple categories, including social media and search engine advertising. Annual fee: $95.
- Blue Business Plus: Earn 2 Membership Rewards points on the first $50,000 spent annually, reverting to 1 point thereafter. No annual fee.
Both the American Express Business Gold and Ink Business Preferred cards excel in advertising-related expenditures while the Blue Business Plus serves as a straightforward alternative for expenses outside those categories.
Leveraging Business Credit Card Travel Benefits
In addition to earning points on business spending, many credit cards extend travel benefits that enhance comfort and savings on business and personal travel. For an extensive range of perks, the American Express Business Platinum card stands out with benefits such as:
- Annual credits for Global Entry or TSA PreCheck.
- Up to $200 in airline statement credits per year for incidental fees with a selected airline.
- Access to over 1,550 airport lounges worldwide.
- Up to $600 in annual lodging statement credits on eligible bookings through American Express Travel.
- Complimentary elite status with several hotel loyalty programs.
Another reliable option is the American Express Business Green Card, which, while lacking extensive travel perks, offers valuable protections for peace of mind while traveling.
Conclusion
Startup costs can quickly accumulate as businesses launch and grow. Choosing the right credit cards can help you earn rewards on necessary purchases, from office supplies and advertising to travel costs.
When deciding on a card, consider which expenses dominate your budget, whether you can fulfill welcome offer spending requirements, and how much ongoing value the card provides.
By employing a thoughtful strategy, everyday business expenses can translate into substantial points, miles, or cash back, putting you one step closer to your next venture or reinvesting in your business.
Related: Discover the best business credit cards to enhance your wallet.
For details on rates and fees of specific cards, consult the respective providers.
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