5 reasons to issue business credit cards to your employees

Whether you need to order supplies, take a client to dinner, or book flights for a business trip, it’s helpful to have employees who can make purchases on behalf of the business. Unfortunately, that can get tricky if you only have one company card to go around, as tracking expenses from multiple employees makes for stressful accounting and sharing a card adds security risk. 

You might ask your team to use their personal cards and reimburse them, but those programs are often cumbersome for employees. If you’re a small business owner looking for a simpler, more secure process, consider issuing credit cards to the employees who need to make business purchases. 

What is an employee credit card?

An employee credit card is an additional card that’s connected to your business credit card account, meaning your employees can use it to cover business-related expenses without needing your company card. You can usually request employee credit cards from your banking provider free of charge.

Why should I issue credit cards to my employees?

Here are five reasons why issuing credit cards to your employees can be useful for small businesses:

1. You can earn business-related rewards

You might already earn rewards if you have a company card, but issuing additional employee cards can help you earn even more. Choose a card that offers cash back on business purchases and rewards based on your most common business expenses, such as travel and dining. You can reinvest these rewards into your business or redeem them to cover activities that boost team morale.

2. You’ll be able to manage cash flow and expenses more efficiently

Employee credit cards can help you avoid common business credit mistakes and streamline cash flow in a number of different ways:

• Track business expenses by card, in real time
• Set spending limits per card
• Separate personal and business spending for yourself and your team
• Separate business spending by card, giving you even more clarity into where your money’s going
• Avoid the need for reimbursements

3. You can enjoy lower interest rates and higher credit limits

When issuing business credit cards, issuers will consider both your personal income and your business revenue. In exchange, you’ll usually receive lower interest rates and higher credit limits, meaning that by issuing business credit cards to your employees, they’ll have more spending power than if they use their personal cards.

4. You’ll build business credit

Business credit, like personal credit, is something you build over time, and an easy way to do that is to make purchases with business credit cards. If your employees have their own credit cards, your business can conveniently make more purchases using the same business account.

It’s important to maintain a strong business credit profile, because having one signals your company’s ability to manage debt. A strong credit profile can also open up funding options like term loans or lines of credit, helping you secure financing quickly. If you want to invest in more staff, equipment, or space, then building business credit is essential.

Having credit cards boosts employee satisfaction

Having a business credit card is good for business, and issuing employee cards is good for morale. It signals your trust, it’s more convenient for your team, and you can reward your employees with card-related perks.

How to get the best business credit card for your company

Issuing business credit cards to your employees unlocks a new level of convenience and spending power for your business, but there are many options to choose from. 

If you’re unsure which business credit card is right for you, start by considering where you tend to spend the most, such as travel, dining, etc. Compare card benefits between reputable business banking providers to see which perks and rewards best fit your company.