Starting a small business requires careful planning and, often, a significant investment. A business credit card can be a valuable tool for managing expenses, building credit, and accessing rewards. Choosing the right card is crucial, and this guide will help you navigate the options and find the best fit for your new venture.
A business credit card can offer numerous benefits, from tracking spending to earning rewards that can be reinvested in your company. Understanding the different features and benefits available will help you make an informed decision and set your business up for success.
| Credit Card | Key Features | Ideal For |
|---|---|---|
| Chase Ink Business Preferred | High rewards on travel and select business categories, travel redemption bonus, strong purchase protection. | Businesses with significant travel and online advertising expenses. |
| American Express Blue Business Cash | Simple cash back rewards, expanded buying power, no annual fee. | Businesses seeking straightforward rewards and flexible spending. |
| Capital One Spark Cash Plus | Unlimited cash back on all purchases, easy redemption options, spending analysis tools. | Businesses looking for consistent rewards and financial tracking features. |
| Capital One Spark Miles for Business | Unlimited miles on every purchase, flexible travel redemption options, no foreign transaction fees. | Businesses with frequent international transactions and travel needs. |
| U.S. Bank Business Triple Cash Rewards World Elite Mastercard | High cash back rates on gas, EV charging, office supplies, and restaurants, intro APR offer. | Businesses with significant spending in everyday categories. |
| Brex Card | Rewards designed for startups, no personal guarantee required, software integrations. | Tech startups and businesses with venture capital funding. |
| Divvy Credit Card | Free expense management software, virtual cards for controlled spending, cash back rewards. | Businesses needing robust expense management and budget control. |
| Amazon Prime Rewards Visa Signature Card | High rewards on Amazon and Whole Foods purchases, no annual fee for Prime members. | Businesses that frequently purchase supplies from Amazon. |
| Chase Ink Business Unlimited | Simple cash back rewards on all purchases, intro APR offer, no annual fee. | Businesses seeking straightforward rewards and low initial costs. |
| Wells Fargo Business Platinum Credit Card | Low intro APR on purchases and balance transfers, no annual fee, spending reports. | Businesses needing to finance purchases or consolidate debt. |
| Bank of America Business Advantage Customized Cash Rewards | Customized cash back categories, bonus rewards for Preferred Rewards clients, flexible redemption. | Businesses with specific spending categories that align with bonus options. |
| American Express Business Gold Card | Flexible spending rewards, bonus rewards on top two spending categories each month, valuable perks. | Businesses with varied spending patterns and a need for flexible rewards. |
| Navy Federal Business Cash Rewards Credit Card | Unlimited cash back on all purchases, low APR options, no annual fee. | Businesses seeking a simple, low-cost cash back card. |
Detailed Explanations
Chase Ink Business Preferred:
The Chase Ink Business Preferred card is a popular choice for small business owners due to its high rewards rate on travel and select business categories, such as shipping, advertising purchases made with social media sites and search engines, internet, cable and phone services. Cardholders earn 3 points per dollar spent on these categories, up to a combined $150,000 annually. A valuable feature is the 25% bonus when redeeming points for travel through Chase Ultimate Rewards, making it a great option for businesses with significant travel expenses. It also provides robust purchase protection and travel insurance.
American Express Blue Business Cash:
The American Express Blue Business Cash card offers a simple and straightforward rewards structure. Cardholders earn 2% cash back on all eligible purchases, up to $50,000 per calendar year (then 1% thereafter). A key benefit is the expanded buying power, which allows you to spend beyond your credit limit (subject to approval and usage). This card also has no annual fee, making it an attractive option for businesses looking for a low-cost rewards card.
Capital One Spark Cash Plus:
The Capital One Spark Cash Plus card provides unlimited cash back on all purchases. While it has an annual fee, the generous cash back rate can easily offset the fee for businesses with substantial spending. The card also offers helpful spending analysis tools to track expenses and manage your budget. The cash back is easy to redeem, offering flexibility in how you use your rewards.
Capital One Spark Miles for Business:
The Capital One Spark Miles for Business card is ideal for businesses with frequent travel needs. Cardholders earn unlimited miles on every purchase, which can be redeemed for travel or cash back. The card also offers no foreign transaction fees, making it a great choice for international travel or purchases. The miles are easy to redeem and provide flexibility in how you use your rewards.
U.S. Bank Business Triple Cash Rewards World Elite Mastercard:
This card provides excellent rewards in everyday business categories. Cardholders earn 3% cash back on gas, EV charging, office supplies, and restaurants, as well as 1% on all other eligible purchases. It's a great option for businesses with significant spending in these areas. The card also often includes an introductory APR offer, providing a period of interest-free financing.
Brex Card:
The Brex Card is specifically designed for startups, particularly those with venture capital funding. A significant advantage is that it doesn't require a personal guarantee, which can be a major benefit for founders. Brex offers rewards tailored to startup needs, such as discounts on software and services. The card also integrates with popular accounting and expense management software, streamlining financial processes.
Divvy Credit Card:
The Divvy Credit Card is a powerful tool for expense management. It comes with free expense management software that allows you to track spending, create budgets, and generate reports. Divvy also offers virtual cards, which can be used to control spending on specific categories or projects. The card also offers cash back rewards, adding even more value.
Amazon Prime Rewards Visa Signature Card:
For businesses that frequently purchase supplies from Amazon, the Amazon Prime Rewards Visa Signature Card is a valuable asset. It offers a high rewards rate on Amazon and Whole Foods purchases. A key requirement is an Amazon Prime membership, but the rewards can easily offset the membership fee for frequent Amazon shoppers. The card also provides rewards on other purchases, making it a well-rounded option.
Chase Ink Business Unlimited:
The Chase Ink Business Unlimited card offers a simple and straightforward rewards structure with no annual fee. Cardholders earn unlimited cash back on all purchases. It often includes an introductory APR offer, providing a period of interest-free financing. This card is a great choice for businesses looking for a low-cost, easy-to-use rewards card.
Wells Fargo Business Platinum Credit Card:
The Wells Fargo Business Platinum Credit Card is a good option for businesses looking to finance purchases or consolidate debt. It offers a low introductory APR on purchases and balance transfers. The card also has no annual fee. It also provides spending reports to help track and manage your business expenses.
Bank of America Business Advantage Customized Cash Rewards:
This card allows you to customize your cash back categories, choosing the categories where your business spends the most. The options include gas stations, travel, dining, office supplies, and more. Bank of America also offers bonus rewards for Preferred Rewards clients. This card provides flexibility in earning rewards and can be tailored to your specific spending patterns.
American Express Business Gold Card:
The American Express Business Gold Card offers flexible spending rewards, automatically adjusting your bonus rewards based on your top two spending categories each month. This ensures you're always earning the most rewards on your most important purchases. The card also comes with valuable perks, such as access to Amex Offers and travel benefits.
Navy Federal Business Cash Rewards Credit Card:
The Navy Federal Business Cash Rewards Credit Card offers unlimited cash back on all purchases with no annual fee. Navy Federal Credit Union membership is required to apply. It's a simple, low-cost option for businesses looking for a straightforward cash back card. The card also often offers low APR options.
Frequently Asked Questions
What is a business credit card?
A business credit card is a credit card specifically designed for business expenses, allowing you to track spending, build credit, and earn rewards.
Why should I get a business credit card?
Business credit cards help separate business and personal finances, provide access to credit for business expenses, and offer rewards and benefits.
What credit score do I need to get a business credit card?
Generally, you'll need a good to excellent personal credit score (670 or higher) to qualify for most business credit cards.
Do business credit cards affect my personal credit score?
Yes, most business credit cards report to personal credit bureaus, so responsible use is crucial to maintain a good credit score.
What are the key factors to consider when choosing a business credit card?
Consider the rewards structure, APR, annual fee, credit limit, and any additional benefits offered by the card.
What is an introductory APR?
An introductory APR is a temporary, often lower, interest rate offered on purchases or balance transfers for a limited time.
What is a personal guarantee?
A personal guarantee means you are personally liable for the debts incurred by your business credit card.
What are virtual cards?
Virtual cards are temporary, digital card numbers that can be used for online purchases to enhance security and control spending.
Conclusion
Choosing the best credit card for your small business depends on your specific needs and spending habits. Consider factors like rewards, APR, fees, and additional benefits to find a card that aligns with your business goals. By carefully evaluating your options, you can leverage a business credit card to manage expenses, build credit, and grow your business.