The role of business credit cards in managing operational expenses

Every business expense tells a story, whether it’s restocking inventory, upgrading equipment or treating the team after reaching their goals. But keeping track of these daily financial outgoings can be a challenge. This is where a business credit card can help, as it gives you control of your operational expenses and provides a little extra if cash flow is tight. 

Keeping your cash flow moving

Your business doesn’t stop when payments are delayed or unexpected costs arise. A business credit card can offer breathing space between making purchases and paying for them. That kind of flexibility may help with managing everything from seasonal changes to timing gaps between invoices.

Consider seasonal businesses like garden centres. Spring often brings with it peak sales but requires significant upfront investment in stock. Construction firms managing multiple projects with different payment schedules may also face cash flow blockers. A business credit card can bridge these gaps, letting you seize opportunities for bulk buying or early payment discounts without putting pressure on your day-to-day cash flow.

Take control of your expenses

Tracking business spending across multiple payment methods can be a headache. With a business credit card, your transactions are automatically logged and categorised, making it easier to monitor expenses and plan ahead. Plus, detailed monthly statements help simplify filing your annual tax return, as you’ll have your expenses in one place. 

Instead of sifting through piles of receipts or reconciling multiple bank accounts, you can see exactly where your money’s going in real time. Need to check how much you spent on marketing last quarter? Or track travel expenses for a specific project? Having everything in one place means you can spot trends while making smarter spending decisions and focus on what really matters: growing your business.

Turn everyday spending into rewards

There’s also the possibility to get something back from the money you’re spending each day. Some business credit cards come with rewards programs that can translate into significant savings. From cashback on everyday purchases to travel perks, these benefits can add value while rewarding your efforts. 

With the Funding Circle Cashback business credit card, you’ll earn an unbeatable 2% cashback on all your business spending for the first six months (up to £2,000), then 1% cashback uncapped after that. Whether you’re buying office supplies, paying for advertising or covering travel expenses, you’re earning on every pound you spend. And with no monthly fees or hidden costs, that cashback could go straight back into your business.

Separate personal and business finances

Mixing personal and business expenses often creates unnecessary complications. A dedicated business credit card helps maintain clear boundaries, making it easier to track profitability and manage your accounts. It also helps establish your business credit history.

This is especially useful when multiple employees have access to company cards. Instead of asking them to pay out of pocket and claim reimbursements later, you can simplify things by providing them with a card and easily tracking their expenses.

Making the right choice for your business

Every business has unique spending patterns and financial needs. Before choosing a business credit card, take a moment to think about how you’ll use it and what features matter most to your company.

Here are the factors to consider:

• How do you plan to manage your balance? If you’re likely to pay in full each month, look for longer interest-free periods and better rewards
• What rewards will add real value? From cashback to travel perks, choose benefits that match your business spending patterns
• Do you need to track team spending? Consider cards offering free additional cards and detailed spending reports
• How will you manage expenses? Look for cards with built-in expense tracking and accounting software integration
• What credit limit will you need? Make sure the card can grow with your business

The best business credit card is as much about finding the right combination of features that will help your business thrive as it is the highest rewards rate or longest interest-free period. Look for transparent fees, useful digital tools and benefits that align with how your business operates.

Choosing a business credit card for your expenses

Along with cashback, there are other business finance options that you may find appealing. FlexiPay from Funding Circle is more than a business credit card. 

It’s a flexible line of credit that enables businesses to cover costs upfront then repay later. You can make payments by card or cash transfer, which is like making a bank transfer to a supplier or your own bank account. Then,  choose between a 1, 3, 6, 9, or 12 month repayment term for ultimate payment flexibility and control over cashflow.

Having flexibility means you can manage larger purchases or unexpected costs without disrupting your cash flow. Whether you’re buying inventory in bulk to get a discount or covering a tax bill, you can spread the cost in a way that works for your business. And with just one simple fee per transaction, there are no surprises or hidden costs to worry about.

A better way to pay for and manage expenses

Managing business expenses can help with how your company operates and grows. From better cash flow control to simplified expense tracking, the right business credit card does the usual like process payments, but it also gives you the freedom to focus on what matters most: running your business.

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.