A lot of us are familiar with rewards and cashback offered by credit card companies as a way of encouraging you to use their products and services. But did you know that business credit cards also offer similar rewards and cashback and sometimes even more?
Business credit cards offer rewards and cashback that can be beneficial for small business owners. These cards often have higher limits than personal credit cards, making them ideal for business purchases.
Benefits of Business credit card rewards and cashback
Business credit cards offer several beneficial credit card rewards and cashback. Let’s take a look at a few:
By earning a percentage of your spending back as rewards or cashback, you can effectively lower your costs and increase your profit margin. For example, if you spend ₹1,00,000 a month on a business credit card that offers 2% cash back on all purchases, you get back ₹24,000 in a year. That’s money that you can reinvest in your business or use for other purposes.
Business credit cards issued to employee cards earn rewards or cashback on their spending. This is especially helpful during business trips. Most business cards offer airport lounge access, gift cards, etc. for every purchase made. This can be a great way to incentivize your employees to use the card and to reward them.
Business credit card rewards and cashbacks gives you more options and flexibility when it comes to managing business finances. The card’s rewards and cashback offer can be used to offset interest charges on card balances, pay off debts, or even save for future expenses.
How to strategically redeem business credit card rewards and cashback
To maximize the value of your business card rewards and cashbacks, you need to have a strategy for redeeming them.
Know your options
Different business credit cards have different redemption options and rules. Learn the details of the card’s redemption program and compare the value of each option before you make a decision. Some may require a minimum amount of rewards or cashbacks before you can redeem them, while others may allow you to redeem them at any time. Some may charge fees or taxes for certain redemption options, while others may not. Always read the fine print beforehand.
Align your goals
Your redemption strategy should align with your business goals and needs. If the goal is to save on travel expenses, you may want to redeem your rewards or cashbacks for travel points or other travel-related services. If the goal is to reduce debt or increase cash flow, you may want to redeem your rewards or cashbacks for statement credits or direct deposits..
Optimize your timing
Timing is another important factor when you redeem business cards. Sometimes timing can also affect the value of your rewards or cashbacks especially for seasonal promotions or limited-time offers that can boost the value of certain redemption options.
What the future holds for rewards and cashback in business credit card
The business credit card market is constantly evolving and changing, and so are the rewards and cashback programs offered by different issuers. Business owners may be able to customize their own rewards and cashback programs based on their preferences and spending patterns. Integration with other business tools and services, such as accounting software, and invoicing platforms, is another important feature that can enhance a business card. Gamified reward programs that can add fun and excitement to the earning and redeeming process are another addition that is expected to take off.
Business credit card are a powerful tools for your business, but you need to use them wisely and strategically. By understanding the benefits, options, and trends of business credit card rewards and cashbacks, you can make the most of them and achieve your business goals in 2024 and beyond.
A card that ticks of all the boxes mentioned is founderscard, a card made for SMEs to vault over their credit issues. It provides best in class credit limit compared to other traditional cards as well as an accelerated reward points system where you can earn up to 3x Reward Points on your spends.
With founderscard, you can-
- Track rewards on the founderscard mobile app
- Get access to SME Bazaar, an online portal for founders
- Earn reward points on all transactions
- Hassle-free redemption from bespoke Rewards Catalogue