Which business reward credit card is right for you?

Business credit cards come with a wide range of rewards but which one is right for you? Let ABF help you compare the different types of rewards you could enjoy.

Why would you use a business credit card with rewards?

Credit cards are a common go-to form of finance for small businesses; a kind of pre-approved loan that’s easy to draw upon when you need finance.

Business credit cards are what the name suggests: A credit card account associated with a business rather than an individual’s personal account. They let businesses track purchases across the organisation and the statements may be sufficient for accounting and tax reporting, and in many cases, remove the need to manage petty cash.

You can also choose to have a card account with multiple cards associated with it. This means that more than one member of staff can have their own separate card but all purchases will apply against the same shared credit limit.

You can read more about how business credit cards work in our guide.

However, many business credit cards offer more, in the form of rewards and perks. Just as your personal credit cards may offer you air miles or cashback on purchases, so do business credit cards.

The idea is simple: The more you purchase using the card, the more rewards you receive in return.

What kinds of rewards are on offer?

Business credit cards come with a wide range of rewards, some of which are linked to the specific retail or services offerings of the organisation supplying the card.

Frequent flyer points are synonymous with credit card rewards. The premise is simple: Each time you use the card to make a purchase, you earn points or “miles” towards air flights. Before you sign up, always check whether your rewards tie you into a particular airline or whether you can redeem them more widely.

Some corporate credit cards with rewards let you claim points against purchases that can be redeemed in specific stores. These rewards are commonly from credit cards issued by High Street retailers or supermarkets. In addition, some new card deals might offer a sales voucher for signing up that can be redeemed for goods or services.

Other business rewards cards may offer rewards that seem less like perks but may prove more beneficial to your business over time. For example, if you’re applying for a new card and transferring an existing balance, a card that offers a long period of zero per cent interest on transfers or new purchases may be a better fit for your business than store points or vouchers. This kind of deal offers companies an affordable route to pay off a balance over a longer time period.

You can also consider a low-fee business rewards card for your organisation. These offer cheap access to finance for a small fee – and in many cases credit card suppliers waive the first 12 months of fees due.

Other kinds of rewards can include cashback, concierge services, complementary travel insurance, discounts on hotels, discounts on office equipment, corporate entertainment or access to airport business lounges.

How do I choose the best business rewards card for my business?

Always remember to balance out the benefits from rewards with the wider considerations of your business needs.

For example, if you’re paying a lot of interest against a high overall balance, then this is likely to outweigh the benefits gained from frequent flyer points or travel insurance perks. In this example it might be more prudent to choose card with a lower APR rather than rewards or a card with a long interest-free period.

However, if you have a business where you or other members of the workforce need to travel overseas, then rewards in the form of frequent flyer points may prove valuable.

Always take an overall view of what’s on offer and don’t get caught up by the short-term gains some cards offer.

Many websites offer regularly-updated, comparative reviews of the business credit cards available. These deals are available from a wide range of suppliers, including banks such as HSBC, Lloyds, NatWest and RBS, to branded offerings from retailers like Asda, Marks & Spencer and Tesco.

What are the costs of business credit cards with rewards?

All business credit cards carry a cost. Consider the APR; this includes the interest rate as well as any fees payable. Many kinds of business credit cards have an annual fee – but as we’ve mentioned, some suppliers waive the first 12 months.

Other common fees include advance fees, foreign exchange fees (paid when converting between currencies) and charges for late payments or exceeding credit limits.

How long does it take to secure a business reward card?

Card applications can take anywhere between a few minutes to several days. A good credit score comes into play here, although card deals are available for businesses with a mixed credit history.

What type of security do I need for a business credit card with rewards?

Business credit cards are typically a kind of unsecured finance, although you will need to have a good credit score to be considered for some of the best deals. If your credit rating is less than stellar you may have to apply for a secured credit card. 

Useful links:

How a business credit card could work for you