If you're a budding entrepreneur looking to start a business, you'll want the right financial tools to make your dreams a reality. One excellent tool to have in your arsenal is a credit card specifically designed for small businesses. A powerful ally, the right business credit card can help you build your company's credit, manage cash flow, and even provide valuable rewards and perks. In this guide, we'll explore the best credit cards for starting a business, helping you take that first step towards success.
Best Credit Cards For Starting A Business Table of Contents
Why You Need a Business Credit Card
A business credit card can offer numerous advantages to both new and established ventures. Some of the key benefits include:
- Building Business Credit: Good credit is essential for a business. A business credit card will help establish a credit history for your company, making it easier to obtain loans and better interest rates down the road.
- Managing Cash Flow: Business credit cards often come with higher credit limits, which can assist with managing your company's cash flow. Plus, most cards have an interest-free grace period, giving you time to pay off your balance without incurring interest.
- Rewards and Perks: Many business credit cards come with rewards programs and perks, such as cashback, travel rewards, or discounts on business-related purchases. These can help offset expenses and make running your company more cost-effective.
- Expense Tracking: Having a separate credit card for your business expenses simplifies financial record-keeping and makes it easier to track your company's spending.
Top Business Credit Cards for Startups
When starting a business, it's essential to find the right credit card to support your company's growth. Here's a list of some of the best business credit cards available:
1. American Express Blue Business Cash™ Card
This card offers a straightforward rewards program, with 2% cash back on eligible purchases, up to $50,000 per calendar year, and 1% cashback on other purchases. The Blue Business Cash™ Card also boasts an interest-free introductory period, making it an ideal option for startups.
2. Capital One Spark Cash for Business
With a generous cash back rewards program, the Spark Cash for Business offers 2% cash back on all purchases. This card is great for companies seeking a simple and rewarding cash back program without the hassle of category restrictions.
3. Chase Ink Business Preferred® Credit Card
The Ink Business Preferred® card provides ample travel rewards, with 3 points per $1 on select categories up to $150,000 in combined purchases each year and 1 point per $1 on other purchases. Plus, there's a large sign-up bonus available. It’s perfect for business owners who travel often and want to maximize their rewards.
4. Bank of America® Business Advantage Cash Rewards Mastercard®
This card offers both cash back and bonus rewards. You’ll earn 3% cash back in a category of your choice and 2% cash back on dining, up to $50,000 in combined purchases each year. Additionally, new cardholders can earn a $300 statement credit sign-up bonus.
5. Brex Corporate Card for Startups
Designed specifically for startups, the Brex Corporate Card offers a no-annual-fee option with flexible spending limits and no personal guarantee required. Rewards include 7x points on rideshares, 4x points on travel, 3x points on restaurants, and 2x points on software subscriptions.
Best Credit Cards For Starting A Business Example:
Imagine you're starting a tech company and need to purchase new equipment and software subscriptions. You decide to apply for the Chase Ink Business Preferred® Credit Card due to its rewarding points system. After receiving the card, you spend $10,000 on the equipment and subscriptions and earn 30,000 points (3 points per $1). As a bonus, the card offers a one-time sign-up reward of 100,000 points if you spend $15,000 within the first 3 months. This means, in just a short time, you've accumulated 130,000 points that can be used towards future business expenses or travel, potentially saving your startup thousands of dollars.
Now that you're aware of some of the best credit cards for starting a business, it's time to choose the right one for your company. Each card offers unique rewards and features, so be sure to consider your business's specific needs and spending habits. Flik Eco is here to help you along the way, with insightful guides and practical tips to make the most of your new venture. Don't forget to share this article with fellow entrepreneurs and explore our other resources on personal finance, investing, and more.
