3 ways to tackle small business travel expenses

As a small business owner, the idea of travelling overseas for work may feel like a pipedream. Something reserved for the big players. But it shouldn’t. 

In today’s global economy, opportunities exist everywhere for businesses of all sizes, whether it’s to meet clients face-to-face, scope out new markets, expand networks, find reliable suppliers or seal deals.

Covering the cost of overseas trips can be tricky for smaller organisations. Business travel expenses quickly build up and can put a strain on cash flow.

But there are options to make the cost of international travel more manageable for small businesses. 

Ways to Tackle Your Business Travel Expenses

Create a Travel Fund

Starting a business travel fund could be a wise move, especially if travel is a priority.

The main benefit is you can take advantage of opportunities overseas without having to worry about cash flow. If you or your team wants to attend a conference or build or strengthen a relationship with a client abroad, you’ll have funds at hand to pay for flights, hotels and any other expenses. 

Other good reasons to have a travel fund:

• Negotiate with travel service providers and take advantage of discounts, saving you money.
• Respond quickly to urgent opportunities or crises overseas.
• Signal to employees that you’re committed to giving them opportunities to travel abroad. 

Learn About Allowable Travel Deductions

Understanding allowable tax deductions can reduce the amount of tax you pay and save you money. 

In short, HMRC lets you claim tax relief on all legitimate business travel expenses. This includes airfares, hotel accommodation, meals, professional phone calls, and parking fees. These expenses can occur anywhere in the world and there’s no upper limit on how much you can spend. The only stipulation is the expenses must be exclusively for business purposes. 

It’s crucial to keep hold of all receipts and invoices to make sure the deduction can be substantiated. 

Get a Business Credit Card

The main benefit of a business credit card is it allows you to pay for travel expenses when cash reserves are tight. You can make big ticket purchases upfront and pay them off over several months, making it easier to manage your cash flow.

However, there are plenty of other benefits to having business credit cards for travel expenses:

• Easily track your own travel expenses. 
• Issue cards to your team and track their travel expenses or set individual spending limits.
• Get a higher credit limit than you would with a personal credit card.
• Avoid costs on international purchases with cards that have no foreign transaction fees.
• Access perks such as airport lounges, hotel upgrades and travel insurance.

How Funding Circle Can Help 

At Funding Circle, we offer two business credit cards that will help you get more out of your travel expenses.

The new Funding Circle Cashback card is the card that pays you back for every business purchase you make, including travel costs such as tickets or hotels. Earn up to £2,000 with 2% cashback in the first 6 months, then you’ll get 1% unlimited cashback after that without caps. Simply use your card to pay, and earn automatically as you spend.

Meanwhile FlexiPay gives small businesses ultimate flexibility when it comes to managing their expenses and cash flow. This rolling line of credit, which comes with a business credit card, lets you spread the cost of your travel expenses – and almost any other business payment – over 1, 3, 6, 9 or 12 months with 0% interest, just a flat fee per transaction. 

You can check your eligibility for both Cashback and FlexiPay in just 30 seconds on our website. 

23/08/24: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.