The best way to get the credit you need to expand your company while simultaneously enjoying the benefits of cash back, incentives, and other beneficial features to support the success of your small business is with a business credit card. Many intelligent freelancers, start-ups, and single owners are good candidates for a small company credit card. Business credit cards aren’t only for big businesses.
You can keep your personal and corporate funds totally separate when you utilize the correct combination of business credit cards. A business credit cards attractive cash back rates and benefits intended to streamline and reward regular company operations may also help small business owners save thousands of dollars annually.
We examined hundreds of credit cards while determining the top startup credit cards before deciding on a few. We evaluated welcome bonuses, yearly fees, and other fees levied by each card in addition to looking for cards that give a greater percentage of rewards on business category spending. On the other hand, we searched for credit cards that allow you to exchange points for cash or vacation at a reasonable cost.
Best Business Credit Cards for Startups and New Businesses
Ink Business Preferred® Credit Card
One of the most valuable introductory bonuses offered by any business credit card on the market, this card is an all-star and top choice. Not to be overlooked is the fact that Chase Ultimate Rewards points are undoubtedly the best credit card points available. For start-ups and small enterprises, the bonus spending categories given by this card are alluring and pertinent.
Each account anniversary year, cardholders may receive 3 points for every dollar spent on travel and certain business categories up to $150,000 and 1 point for every dollar spent on all other transactions. If a cardholder maximises their rewards earning potential, they might earn an astounding 450,000 points only from their total expenditures in those areas.
Even at the standard redemption rate of a cent per point, 450,000 points would be worth $4,500. The value of 450,000 points would rise to $5,625 if cardholders choose to use their points to book travel via Chase Ultimate Rewards with a 25% bonus.
The flexibility of transferring as needed to the more than a dozen airlines and hotels that are Chase Ultimate Rewards transfer partners, where the value of the points can exceed two cents each, for a potential staggering value of $9,000+, is where the best value of Chase Ultimate Rewards points can be found.
100,000 points after making purchases totaling $15,000 during the first three months of account creation.
Ink Business Unlimited Credit Card
A competitive, annual-fee-free business credit card that enables cardholders to receive 1.5% cash back on all purchases without limit.
The Ink Company Limitless Credit Card makes making money easier by offering unlimited 1.5% cash back, allowing business owners to concentrate on other aspects of their operations without having to bother about figuring out how to accrue and use points. For one penny each, points may be exchanged for statement credits, gift cards, or travel.
After making $7,500 in purchases during the first three months of your account creation, you will get a $750 bonus cash back. Additionally, The Ink Business Unlimited provides a 12-month 0% introductory APR on purchases. After that, purchases and debt transfers are subject to a variable APR ranging from 15.49% to 21.49%. There is a $5 balance transfer charge, or 5% of each transfer’s value, whichever is higher.
Brex 30 Card
Because the borrower is not needed to personally guarantee the debt accrued on the card, the Brex Card stands apart among other small company credit cards. Brex bases its decision of a company’s creditworthiness on an analysis of its available liquid capital as well as an appraisal of its investors and total spending.
Businesses who are already funded but do not have a significant credit history can think about using the Brex Card. Because Brex collaborates with Dun & Bradstreet and Experian to record on-time payments, the card enables small enterprises and start-ups to establish business credit.
As a cardholder, you have a few choices for earning rewards with the Brex Card, but the standard option gives 1 point for every dollar spent on regular, daily transactions and provides extra benefits in a number of areas. The exact bonus categories are: 7 points for every $1 spent on ridesharing services (Lyft, Uber, etc.); 4 points for every $1 spent on travel booked via Brex; 3 points for every $1 spent on dining out; and 2 points for every $1 spent on recurring software subscriptions. Cardholders have the option of choosing daily bill payment to get slightly better incentives.
By moving their points to one of the airline transfer partners, cardholders may redeem rewards for the highest value possible. Partner airlines include Singapore Airlines, Air France, Qantas, Cathay Pacific, and more, and they are spread throughout the three main airline alliances.
How to Pick a Credit Card for Your Business
The sheer quantity of credit cards that provide rewards for business spending might quickly overwhelm you. In spite of the fact that there are several rewards credit cards available today, some are much superior to others.
You may choose the best card for your requirements and objectives by using these suggestions.
- Choose the incentives you wish to get. While some credit cards give cash back rewards, others allow you to accrue transferable points that have the potential to be worth far more than the rewards offered by a typical cash back reward card. Keep in mind the potential worth of your points while choosing a redemption strategy.
- Examine the bonus categories for credit cards. How will you use your credit card to make purchases? If your new credit card provides bonus categories like advertising, office supplies, restaurants, or travel, you’ll want to be sure you can take full use of them.
- Make sure you will get enough points from the card to offset the cost of owning it by comparing expenses, including annual fees.
- Look carefully at additional cardholder benefits that you could enjoy. Examples include no-cost employee cards for your company account, purchase protection against loss or theft, extended warranties, and travel insurance protections like luggage delay and trip accident insurance. Additionally, you could see advantages that facilitate travel, such access to airport lounges or elite status.
Frequently Asked Questions
Can I make personal purchases using a company credit card?
For a number of reasons, it is typically discouraged to combine your personal and work costs. To begin with, it might make things challenging when it comes time to file your taxes. Additionally, your company credit card may not have the same consumer protections as your personal one. You may sooner reach your card limit if you charge expensive personal costs on your company card, which might have an effect on your personal credit. Another thing to think about is that it’s probably against your cardholder agreement to use your corporate credit card for personal costs.
Can I acquire a small company credit card without having an Employer Identification Number (EIN)?
An employment identification number is not required to apply for a small company credit card. You may use your Social Security number to apply for a business card if you’re a lone owner or don’t have an EIN already. If you apply for a business card, you should be aware that you are also personally responsible for any debts you incur using the card. Therefore, even if your company fails, you will still be responsible for paying off the remaining sum on your business credit card.