Last updated Jul. 24, 2024 by Okechukwu Nkemdirim
Introduction
Running a small business has its unique set of challenges and financial requirements. One of the smartest strategies to streamline expenses, manage finances effectively, and maximize benefits is to choose the right business credit card. Among myriad options available, the American Express Business Platinum Card stands out for its array of features specifically tailored for small to medium-sized enterprises (SMEs). This article delves into various reasons why small businesses should consider the Amex Business Platinum Card, highlighting its benefits, fees, potential drawbacks, and how it can make a significant impact on business growth and efficiency.
Comprehensive Rewards Program
Earn Membership Rewards Points
The Amex Business Platinum Card offers an impressive rewards program through its Membership Rewards. Cardholders earn 5X Membership Rewards points on flights and prepaid hotels booked on amextravel.com, and 1X point for each dollar spent on eligible purchases. For a business that frequently travels or books accommodations, these points can accumulate rapidly and be redeemed for various purposes such as travel, gift cards, and even statement credits.
1.5X Points on Eligible Purchases
Additionally, small businesses can earn 1.5X points on eligible purchases at U.S. construction material and hardware suppliers, electronic goods retailers, software, and cloud system providers, and on purchases of $5,000 or more everywhere else. This is incredibly beneficial for companies making large capital investments.
Extensive Travel Benefits
Complimentary Airport Lounge Access
Travel is an indispensable part of many small businesses. The Amex Business Platinum Card offers complimentary access to over 1,300 airport lounges worldwide through the American Express Global Lounge Collection, including Centurion Lounges, International American Express Lounges, Delta Sky Clubs (when flying Delta), and Priority Pass lounges.
Elite Status and Free TSA PreCheck/Global Entry
Cardholders also enjoy elite status at top-tier hotel chains such as Hilton Honors and Marriott Bonvoy. Moreover, they can receive up to $100 in statement credits for Global Entry or TSA PreCheck application fees, streamlining their travel experience even further.
Airline Fee Credits
Every year, businesses can designate one qualifying airline and receive up to $200 in statement credits towards incidental fees, making travel more cost-effective.
Business-Focused Benefits
Employee Cards
The Amex Business Platinum Card allows business owners to issue additional employee cards, helping to centralize expenses and track business-related spending seamlessly.
Expense Management Tools
With tools such as Spend Manager and integration with QuickBooks, it becomes significantly easier for small business owners to manage finances, categorize expenses, and even generate spending reports. These tools can save considerable time and reduce the administrative burden associated with bookkeeping.
Working Capital Edge
Eligible cardholders can also benefit from the Working Capital Edge program, which provides short-term working capital loans. This can be incredibly useful for small businesses with fluctuating cash flows or those needing quick access to funds for operational needs.
✓ Short Answer
The Amex Business Platinum Card offers a blend of robust rewards, travel benefits, and business-focused tools that make it a highly valuable asset for small businesses. Its extensive travel perks, comprehensive rewards program, and financial management tools can significantly enhance operational efficiency and cost savings.
Potential Drawbacks
Annual Fee
One of the most significant considerations for any small business is the annual fee. The Amex Business Platinum Card has a substantial annual fee of $695 (as of 2023). While the benefits can outweigh the costs for businesses that use them extensively, it’s critical to evaluate whether your business will utilize enough of these benefits to justify the fee.
High Credit Standards
Additionally, obtaining the Amex Business Platinum Card typically requires excellent credit, which might be a barrier for some small businesses, especially those just starting out or recovering from financial difficulties.
Foreign Transaction Fees
While the card is ideal for domestic travel and expenses, it does have a 2.7% foreign transaction fee, which might be a drawback for businesses frequently conducting international transactions.
How Amex Business Platinum Can Drive Business Growth
Boost Employee Morale
Access to high-end travel amenities and the ability to provide employee cards can significantly boost employee morale and loyalty. Employees traveling for business will appreciate the comfort and convenience provided by the additional travel benefits.
Efficient Financial Management
The expense management tools and the ability to earn more points on large purchases directly contribute to better financial health and operational efficiency. These simplify bookkeeping and spending analysis, allowing business owners to focus more on core business activities.
Enhance Brand Image
Using a premium card like the Amex Business Platinum not only streamlines operations but also enhances the company’s brand image. It signals to clients and partners that the business is stable, trustworthy, and values premium services.
Conclusion
The American Express Business Platinum Card offers an impressive suite of benefits and features that can significantly aid in the operational efficiency and growth of a small business. While the high annual fee and other constraints might be a consideration, the travel perks, rewards program, and business-focused tools provide substantial value.
Ultimately, business owners should weigh these benefits against their specific needs and spending patterns to determine if this card is the right fit for their enterprise. For those who can fully utilize its features, the Amex Business Platinum Card can be an invaluable asset, aiding in both day-to-day operations and strategic growth initiatives.
Frequently Asked Questions (FAQs)
Is the Amex Business Platinum Card worth the annual fee?
The value of the Amex Business Platinum Card depends largely on how much your business can utilize the offered benefits. If your business frequently travels, makes large purchases, or needs robust expense management tools, the annual fee is likely worth it.
What credit score is needed for the Amex Business Platinum Card?
Generally, you need excellent credit to qualify for the Amex Business Platinum Card, which typically means a score of 700 or higher.
Can I issue additional cards for my employees?
Yes, the Amex Business Platinum Card allows you to issue additional cards for your employees, helping you manage and track business expenses more effectively.
What are the main rewards and travel benefits?
The main rewards include 5X points on flights and hotels booked through amextravel.com and 1.5X points on eligible purchases of $5,000 or more. Travel benefits include complimentary airport lounge access, elite status at hotel chains, and up to $200 in annual airline fee credits.
Are there any foreign transaction fees?
Yes, there is a 2.7% foreign transaction fee for purchases made outside the U.S.
Can I use the expense management tools with my existing accounting software?
Yes, the Amex Business Platinum Card’s expense management tools can be integrated with QuickBooks and other accounting software, making it easier to manage your business finances.
What is the Working Capital Edge program?
The Working Capital Edge program provides short-term loans to eligible cardholders. This can be useful for managing cash flow or covering operational expenses during lean periods.
