3 Game-Changing Secrets of Business Credit Cards for Entrepreneurs

You work hard to run your business. You wear several hats, put in long hours and are constantly finding new ways to keep your customers happy and your bottom line strong. Could you use a hand to protect your assets and optimize your cash flow? Your business credit card might just be the tool you need.

Discover how powerful a business credit card can be for your business. It’s time to get to know your card’s perks so you can take full advantage of what’s available to you.

Three ways a business credit card works almost as hard as you do

Chances are you’re already using a business credit card for your business expenses. You recognize the value of separating your business and personal costs and acknowledge the convenience of this method of payment. But beyond the administrative upside, there are considerable advantages to using a hard-working business credit card.

Here are some of the advantages you might not be aware of.

1. Track, monitor and control your business cashflow with your business credit card

As a business owner, a clear view into your business’ finances is essential to your ability to effectively make decisions, plan for the future and run a thriving business. A high-performing business credit card program enables you to not only stay on top of your cashflow, but also provide valuable insights to help you maximize it.

While business credit cards in Canada have different features, some of the more sophisticated card programs come with the following.

Tracking and reporting capabilities:

• Many of the best business credit cards make it easier to stay on top of your business cashflow with the ability to track spending, categorize expenses and add receipts through online reporting tools. With this line of sight into your business spending, you can see exactly how much money is going out, and for what purpose, leading to more informed decision-making around business expenses.

• In many cases, you can connect your business credit card to your accounting software. This functionality allows you to automatically transfer data, saving you the time and effort that comes with manually entering expenses, thereby increasing efficiency.

Interest-free grace periods:

• If your business is like most, you face occasional cash flow crunches: as you wait for receivables to come in, you have payables looming and not enough cash to comfortably make your payments. With a business credit card, you can smooth out your cash flow by making use of interest-free grace periods. In fact, some business credit cards have extended grace periods, which provide more time to pay for expenses.

Employee business cards:

• Whether you have five, fifty or five hundred employees with spending authority, you want visibility into what they’re purchasing. With many card programs, you can customize each of your employees’ business credit cards so you can control where, when and how they are used. This line of sight offers the peace of mind that comes with knowing your employees are using their cards appropriately and for business-approved expenses.

• For additional oversight and control over employee spending, you can set and manage limits on employee cards, implement restrictions and review transactions in real-time.

2. Access perks, rewards and cash back to reinvest in your business

Many business credit cards come with perks that can be used to support your business. The trick is to match your credit card features with your specific needs. Consider these examples:

• You travel frequently for business: There are cards that offer access to premium rewards programs that enable you to redeem points for travel and access to airport lounges around the world, plus other valuable airport, dining and spa offers.

• Your business is seeking solutions to optimize operations: Some card programs, through their banking relationships, offer partner perks such as discounts on software services, payment processing and marketing tools, which can help you save on essential business expenses.

• You have capital purchases to make: Some rewards programs offer the flexibility to redeem rewards points for merchandise and gift cards. There may also be the opportunity to save money on popular tech brands.

• You could use a cash flow boost: Business credit cards with cash back programs provide a percentage of cash back on eligible purchases, which you can use to bridge financial gaps or reinvest in your business.

3. Use your credit card to help protect your business

You’ve worked hard to build your business – and your company’s finances, equipment and employees deserve protection. Here’s how your business credit card can help:

• Travel insurance. Some business credit cards come with extensive travel insurance coverage, which can help you recoup travel costs in the event of an unexpected situation or cover costs associated with the loss or theft of your belongings. In addition to providing much-needed protection, these built-in benefits can help you save money on separate travel coverage. Take time to read the details of what your card offers when it comes to:  

  • Trip cancellation coverage – should you need to call off a trip due to a covered event

  • Baggage insurance – in the case of lost or stolen bags

  • Hotel/burglary insurance – to cover stolen items left in your room

  • Car rental coverage – which covers you in the case of any damage to your rental car, including if it’s lost or stolen 

• Day-to-day protection for your business, including:

  • Liability protection – which helps protect your business against unauthorized charges by your employees

  • Mobile device protection – in case a mobile device such as your cell phone is lost, stolen, accidentally damaged or experiences mechanical failure

  • Extended warranties – which lengthen the amount of time an item is covered under warranty

  • Purchase and return protections – which safeguard products against theft or damage for a specified period

If you want to maximize your business cashflow, gain better insight into your spending and take advantage of valuable benefits that can save you money, it may be time to examine your business credit card options. Don’t miss out! Check out the package that came with your card – or look up details online – to learn more about the lesser-known perks come with your card.

Find the right business credit card for your needs

What is the best business credit card for business owners? It’s the one that best fits the needs of your business.

Try the free Business Card Selector Tool

Explore RBC business credit cards and find the one that’s best for you.

Compare options to match the card to your specific needs.