The Ultimate Guide to Credit Cards for Small Business




Financial efficiency is critical for achieving success in the dynamic realm of entrepreneurship. A judiciously selected business credit card is a potent instrument that can assist proprietors of small enterprises in this pursuit. In addition to coordinating personal and business expenditures, these cards provide business proprietors with various rewards and perks specifically designed to meet their requirements. With the help of a curated list of twenty-one popular options spanning multiple categories, this article examines the most advantageous small business credit cards of February 2024. These business credit cards accommodate various requirements, including cash back, travel rewards, luxury benefits, and special financing.

Capital One Spark Cash Plus Credit Card – Best for Cash Back

Rewards: Unlimited 2% cash back on every purchase.

Welcome Bonus: Up to $3,000 cash bonus.

Annual Fee: $150.

Special Features: No foreign transaction fees, free employee cards, and roadside assistance benefits.

Unique in providing 2% cash back on all purchases, the Capital One Spark Cash Plus Credit Card is an excellent choice for business proprietors searching for an uncomplicated and adaptable rewards programme.

Ink Business Preferred® Credit Card – Best for Travel

Rewards: Earn 3X points per $1 on select categories.

Welcome Bonus: 100k bonus points after spending $8,000 in the first 3 months.

Annual Fee: $95.

Special Features: Points worth 25% more for travel, 1:1 point transfer to travel programs and cell phone protection.

Designed specifically for business proprietors who incur substantial travel and business-related costs, the Ink Business Preferred Credit Card provides a substantial introductory incentive and advantageous travel privileges.

Ink Business Unlimited® Credit Card – Best for No Annual Fee

Rewards: Earn 1.5% cash back on every purchase.

Welcome Bonus: $750 bonus cash back after spending $6,000 in the first 3 months.

Annual Fee: $0.

Special Features: 0% intro APR for the first 12 months, free employee cards, and cash back convertible to Chase Ultimate Rewards® points.

Small businesses should consider the Ink Business Cash Credit Card, which offers a substantial welcome incentive and cash back on routine business expenses.

Ink Business Cash® Credit Card – Best for Welcome Bonus

credit cards for small business

Rewards: 5% cash back on select categories.

Welcome Bonus: $750 bonus cash back after spending $6,000 in the first 3 months.

Annual Fee: $0.

Special Features: 0% intro APR for the first 12 months, bonus cash back on office supplies and internet services.

Small businesses should consider the Ink Business Cash Credit Card, which offers a substantial welcome incentive and cash back on routine business expenses.

The Business Platinum Card® from American Express – Best for Luxury Perks

credit cards for small business

Rewards: Earn 5X Membership Rewards® points on flights and hotels.

Welcome Bonus: 120,000 Membership Rewards® points after spending $15,000 in the first 3 months.

Annual Fee: $695.

Special Features: Access to airport lounges, statement credits for travel-related expenses, and premium travel benefits.

Although the annual fee is higher, the American Express Business Platinum Card gives business owners exclusive benefits and opulent travel privileges.

The Blue Business® Plus Credit Card from American Express – Best for Financing New Purchases

credit cards for small business

Rewards: Earn 2X Membership Rewards® points on business purchases.

Welcome Bonus: 15,000 Membership Rewards® points after spending $3,000 in the first 3 months.

Annual Fee: $0.

Special Features: 0% intro APR on purchases for 12 months, straightforward rewards program.

The Blue Business Plus Credit Card offers a straightforward rewards structure and an introductory APR of 0% for business proprietors who finance new purchases.

Capital One Spark 1% Classic – Best for Average Credit

credit cards for small business

Rewards: Earn unlimited 5% cash back on hotels and rental cars.

Welcome Bonus: None.

Annual Fee: $0.

Special Features: No foreign transaction fees, free employee cards.

Designed to accommodate business proprietors with ordinary credit, the Capital One Spark 1% Classic provides a cash-back rewards programme with no annual fee.

American Express® Business Gold Card – Best for Shipping

credit cards for small business

Rewards: Earn 4X Membership Rewards® points on selected categories.

Welcome Bonus: 70,000 Membership Rewards points after spending $10,000 in the first three months.

Annual Fee: $295 ($375 if application is received on or after 2/1/24).

Special Features: 25% points back on flights, flexible solutions for cash flow, and no foreign transaction fees.

Tailored to accommodate the unique needs of enterprises that incur substantial shipping costs, the American Express Business Gold Card provides advantageous rewards and adaptable cash flow management alternatives.

Conclusion

In summary, the optimal small business credit card selection is contingent upon the organisation’s distinct requirements and expenditure behaviours. A credit card that offers valuable rewards and facilitates effective business financial management is available, regardless of whether one places a higher value on cash back, travel rewards, or luxury benefits. When making a decision, keep in mind to consider annual fees, welcome incentives, and additional benefits.

Benefits of Small Business Credit Cards

Expense Separation: Simplifying bookkeeping and tax preparation, business credit cards aid in the segregation of personal and business expenditures.

Rewards and Perks: Enhance the value of your expenditures by accumulating rewards, cash back, or travel benefits in exchange for business-related expenses.

Employee Management: Numerous cards provide complimentary employee cards, which enhance expense monitoring for staff members and offer supplementary advantages.

Special Financing: Certain credit cards offer a 0% introductory APR, which enables buyers to finance new purchases for a specified period without incurring interest charges.

Travel Benefits: Besides statement credits for travel-related expenses and access to airport lounges, luxury cards provide a range of premium travel benefits.

How to Apply for a Small Business Credit Card

Gather Information: The following information is required: name, address, tax identification number (EIN or SSN), projected revenue, duration of operation, and employee count.

Select a Card: Regarding fees, rewards, and features, select a credit card corresponding to your organisation’s requirements and inclinations.

Online Application: Completing the online application on the issuer’s website while supplying the required business and personal information is required.

Credit Check: Business credit card applications typically require a personal credit check, and the applicant’s creditworthiness determines approval.

Wait for Approval: Await a response from the issuer after submitting your application. The card will be mailed to you upon approval.

How Small Business Credit Cards Work

Credit Limit: By your creditworthiness, you are allocated a credit limit, which signifies the sum that can be billed to the card.

Making Purchases: The credit balance applied to the card for business expenses will be factored into the credit utilisation ratio.

Repayment: You can settle your balance by meeting the due date and avoiding incurring interest charges. Certain cards feature an introductory APR of 0% for a grace period.

Accumulating Rewards: Obtain rewards or cash back from your expenditures, thereby augmenting the value of your enterprise.

Managing Expenses: Incorporate functionalities such as expense management tools, employee credentials, and expenditure reports to optimise the financial management process.

FAQs

Do I need an EIN to get a business credit card?

No, you can use your Social Security Number (SSN) as a sole proprietor. Nevertheless, possessing an employer identification number (EIN) is recommended to ensure more significant differentiation.

Do business credit cards appear on my credit report?

Indeed, the fact that most business credit cards report to business and personal credit bureaus impacts personal credit scores.

What’s the difference between personal and business credit cards?

Credit cards for business use are equipped with reward programmes and expense management tools catering to the enterprise’s unique requirements.




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