Using business credit cards for micro-investments

Managing small, recurring business expenses often feels like another task on your to-do list. But choosing the right payment method for purchases like software subscriptions or regular supplies can help make these necessary costs work more efficiently for your business. Here’s a look at how business credit cards have the potential to help you handle these everyday expenses.

The ins and outs of your regular, micro business expenses

Before looking at how to handle recurring costs in a more effective way, it’s worth taking time to identify them. Some common examples of the type of things your business spends on regularly may include:

• Software subscriptions and digital tools
• Regular supplier orders
• Monthly service fees
• Utility bills
• Insurance premiums

Many business owners find these small but frequent expenses add up to a significant portion of their monthly outgoings. They’re also the type of payments that tend to be overlooked when reviewing business spending, partly because they’re viewed as fixed, necessary costs.

The way you choose to pay these expenses, however, can make a difference to your cash flow. For instance, timing your regular payments to align with your business’s income cycle or choosing a payment method that offers more flexibility could help manage these costs more smoothly.

A common example may be something like scheduling monthly software subscription payments for the start of the month when client payments typically arrive, rather than when the invoice is first issued.

Making your card work for regular payments 

Using a business credit card for recurring expenses offers distinct benefits compared to other payment methods. Like most payment cards, credit cards provide detailed monthly statements for tracking and categorising spending. However, they also give you more flexibility around when you actually pay for these expenses.

Some expenses also become more manageable with a credit card. For instance, many software providers offer automatic card payments, and the interest-free period means you can time these payments to better match your cash flow. Plus, having all your subscriptions charged to one credit card helps monitor your overall credit utilisation.

When using a credit card for recurring payments, it’s important to:

• Check if suppliers charge extra fees specifically for credit card payments
• Keep track of when free trials end to avoid unexpected charges on your statement
• Review your monthly statements to spot any unused subscriptions
• Align payment dates with your interest-free period
• Ensure automatic payments won’t exceed your credit limit

Managing your payment schedule

Planning when to set up your recurring payments can impact how well they work for your business. Most suppliers will let you choose your payment date when setting up a subscription or regular payment, giving you the flexibility to pick a time that suits your business cycle.

When setting up your payment dates, look at when you usually receive payments from clients, card statement dates and when your other big bills are due. Spacing things out helps prevent too many payments landing at once, which can strain both your available credit and your cash flow.

It’s worth reviewing your payment schedule every few months, especially if you take on new subscriptions or regular commitments. Business patterns can change over time, and what worked well six months ago might need adjusting to better match your current situation. 

For larger recurring payments like VAT or corporation tax, you might want to consider FlexiPay from Funding Circle, which lets you cover these costs upfront and then spread the repayments  over 1, 3, 6, 9 or 12 monthly instalments, offering more flexibility than traditional lending products, such as a business credit card.

Getting the most out of card benefits for micro-investments

While the main advantage of using a credit card for regular expenses is convenience and flexibility, certain cards may offer additional perks. Business credit cards often come with features designed to help make your regular spending work harder for your company.

Earning while you spend

Funding Circle’s Cashback business credit card gives you 2% cashback on all spending for the first six months (up to £2,000), then 1% thereafter. This applies to regular subscriptions and routine payments you’d need to pay anyway, meaning you can get rewarded for each micro business expense. 

Interest-free periods

Making use of interest-free periods can help with payment timing. For example, the cashback business credit card offers up to 42 days interest-free on purchases when you pay your balance in full. You can enjoy extra flexibility when you settle your regular payments.

Easier tracking

Business credit cards provide detailed statements that make it simpler to monitor your regular outgoings. Having added visibility helps when taxes are due and when reviewing which subscriptions you’re actually using.

Taking the micro approach with the bigger picture in mind

Managing your regular business expenses comes down to good planning and choosing the right payment methods. A business credit card can help simplify these payments while offering helpful features like cashback and interest-free periods. Taking control of these small but important costs can help your business build better financial habits that support your business for years to come.

08/01/25: 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.