Choosing the right credit card for your small business is a critical decision that can significantly impact your cash flow, spending habits, and overall financial health. A well-chosen business credit card can provide access to essential funding, help you track expenses, and even earn valuable rewards. This guide aims to provide a comprehensive overview of the best business credit cards available in 2024, helping you make an informed decision that aligns with your specific business needs.
| Card Name | Rewards & Benefits | Key Features |
|---|---|---|
| American Express Business Gold Card | 4x points on the 2 select categories where your business spent the most each billing cycle (up to $150,000 combined per year, then 1x). | High rewards rate on top spending categories; Pay Over Time feature; access to Amex Offers and benefits. |
| Chase Ink Business Preferred Credit Card | 3x points on travel and select business categories (up to $150,000 spent annually); 1x points on all other purchases. | Solid rewards program with valuable travel redemption options; primary auto rental collision damage waiver; purchase protection; trip cancellation/interruption insurance. |
| Capital One Spark Cash Plus | Unlimited 2% cash back on every purchase. | Simple and straightforward rewards structure; no foreign transaction fees; purchase security; extended warranty protection. |
| U.S. Bank Business Triple Cash Rewards World Elite Mastercard | 3% cash back on eligible purchases at gas stations and EV charging stations, office supply stores, cell phone service providers, and restaurants; 1% cash back on all other eligible net purchases. | High rewards rate on common business expenses; 0% introductory APR; cell phone protection; access to Mastercard Easy Savings Program. |
| Brex Card | Rewards points on all purchases; bonus points for using Brex travel portal and software. | Designed specifically for startups and tech companies; no personal guarantee required for many businesses; integration with accounting software; access to Brex Empower platform. |
| Blue Business Cash™ Card from American Express | 2% cash back on all eligible purchases up to $50,000 per calendar year; then 1% cash back. | Simplicity and automatic cash back rewards; Expanded Buying Power feature; access to Amex Offers. |
| Chase Ink Business Cash Credit Card | 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year; 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year; 1% cash back on all other purchases. | High earning potential in common business spending categories; no annual fee; purchase protection; fraud protection. |
| Bank of America® Business Advantage Customized Cash Rewards credit card | 3% cash back in the category of your choice (up to $50,000 in combined choice category/gas and travel purchases each calendar year, then 1%); 2% cash back on gas stations and restaurants (up to $50,000 in combined choice category/gas and travel purchases each calendar year, then 1%); 1% cash back on all other purchases. | Customizable rewards category to align with your business spending; bonus rewards for Bank of America Preferred Rewards for Business members; no annual fee. |
Detailed Explanations
American Express Business Gold Card
The American Express Business Gold Card is designed for businesses that want flexibility in their rewards. It offers 4x points on the 2 categories where your business spends the most each billing cycle (up to $150,000 combined per year, then 1x). This allows you to maximize your rewards based on your specific spending patterns. The "Pay Over Time" feature provides flexibility in managing larger expenses. You'll also get access to Amex Offers, which can provide additional savings and benefits.
Chase Ink Business Preferred Credit Card
The Chase Ink Business Preferred Credit Card is a strong choice for businesses that travel frequently. It offers 3x points on travel and select business categories (up to $150,000 spent annually), providing significant rewards on common business expenses. The points can be redeemed for travel through the Chase Ultimate Rewards portal, often at a value of 1.25 cents per point. The card also includes valuable travel protections, such as primary auto rental collision damage waiver and trip cancellation/interruption insurance.
Capital One Spark Cash Plus
The Capital One Spark Cash Plus offers a simple and straightforward rewards structure with unlimited 2% cash back on every purchase. This makes it a great option for businesses that want a predictable and easy-to-understand rewards program. There are no foreign transaction fees, making it suitable for international purchases. The card also includes purchase security and extended warranty protection.
U.S. Bank Business Triple Cash Rewards World Elite Mastercard
The U.S. Bank Business Triple Cash Rewards World Elite Mastercard is a great option for businesses with diverse spending habits. It offers 3% cash back on eligible purchases at gas stations and EV charging stations, office supply stores, cell phone service providers, and restaurants. All other purchases earn 1% cash back. The card also comes with cell phone protection and access to the Mastercard Easy Savings Program, offering automatic rebates on purchases at participating merchants.
Brex Card
The Brex Card is specifically designed for startups and tech companies. It offers rewards points on all purchases, with bonus points for using the Brex travel portal and software. Unlike many business credit cards, the Brex Card often does not require a personal guarantee, making it an attractive option for early-stage businesses. It also integrates seamlessly with accounting software and provides access to the Brex Empower platform, which offers tools for expense management and financial reporting.
Blue Business Cash™ Card from American Express
The Blue Business Cash™ Card from American Express stands out for its simplicity and automatic cash back rewards. Cardholders earn 2% cash back on all eligible purchases up to $50,000 per calendar year, then 1% cash back. The "Expanded Buying Power" feature provides flexibility for larger purchases. Plus, you get access to Amex Offers for additional savings.
Chase Ink Business Cash Credit Card
The Chase Ink Business Cash Credit Card is excellent for businesses with high spending in specific categories. It offers 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. You also get 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. All other purchases earn 1% cash back. Best of all, it comes with no annual fee.
Bank of America® Business Advantage Customized Cash Rewards credit card
The Bank of America® Business Advantage Customized Cash Rewards credit card offers flexibility with its customizable rewards category. You can choose to earn 3% cash back in the category of your choice (up to $50,000 in combined choice category/gas and travel purchases each calendar year, then 1%). Gas stations and restaurants earn 2% cash back (up to $50,000 in combined choice category/gas and travel purchases each calendar year, then 1%). All other purchases earn 1% cash back. Bank of America Preferred Rewards for Business members can also earn bonus rewards. This card also carries no annual fee.
Frequently Asked Questions
What is a business credit card?
A business credit card is a credit card designed specifically for business use, offering features and benefits tailored to the needs of small business owners. They allow you to separate personal and business expenses, build business credit, and often earn rewards on business purchases.
Why should I get a business credit card?
Business credit cards help you track business spending, build business credit history, and often provide valuable rewards and benefits like travel insurance and purchase protection. They also help to keep your personal and business finances separate.
How do I choose the right business credit card?
Consider your business's spending habits, desired rewards (cash back, points, miles), and any specific features you need (e.g., no foreign transaction fees, travel insurance). Also, consider the annual fee, APR, and any introductory offers.
What is an APR?
APR stands for Annual Percentage Rate and represents the annual cost of borrowing money on your credit card, including interest and fees. A lower APR means you'll pay less in interest charges if you carry a balance.
What is a credit limit?
A credit limit is the maximum amount you can charge to your credit card. It's determined by the credit card issuer based on your creditworthiness and financial history.
What is a personal guarantee?
A personal guarantee means you are personally liable for the debts of your business if it cannot repay them. Some business credit cards require a personal guarantee, while others do not.
How can I build business credit?
Use your business credit card responsibly by making on-time payments and keeping your credit utilization low. This will help you build a positive credit history for your business.
What are some common rewards categories for business credit cards?
Common rewards categories include travel, dining, office supplies, gas, internet, cable, and phone services. Some cards also offer bonus rewards for specific merchants or online purchases.
What is a sign-up bonus?
A sign-up bonus is an incentive offered by credit card issuers to attract new customers. It typically involves spending a certain amount of money within a specified timeframe to earn a bonus in the form of cash back, points, or miles.
What is a foreign transaction fee?
A foreign transaction fee is a fee charged by credit card issuers for purchases made in a foreign currency. If your business frequently makes purchases in foreign currencies, it's important to choose a card with no foreign transaction fees.
Conclusion
Choosing the best credit card for your small business depends on your specific needs and spending habits. Carefully evaluate the rewards programs, fees, and benefits of each card to find the one that best aligns with your business goals. By making an informed decision, you can leverage the power of business credit cards to improve your cash flow, track expenses, and grow your business.