In the competitive world of startups, having the right financial tools can make a significant impact on your success. Choosing the best credit card for your startup is not only essential for managing expenses and cash flow, but can also help accumulate valuable rewards and perks. With so many options available, finding the perfect card can seem daunting. But fear not! In this article, we'll walk you through the top credit cards designed with startups in mind.
Best Credit Cards For Startups Table of Contents
What to look for in a credit card for startups
Before diving into our top picks, let's discuss what factors to consider when selecting the perfect credit card for your startup.
1. Rewards and cash back
The best credit cards will offer rewards or cash back for your business's spending. Cash back cards provide a percentage of your spending back as cash or statement credits, while rewards cards allow you to earn points or miles to redeem for travel, gift cards, and other products.
2. Introductory Offers
Some credit cards offer attractive introductory bonuses, such as a 0% APR for a specified period or a significant rewards bonus after meeting a spending threshold. Taking advantage of these offers can provide extra financial breathing room for your startup.
3. Annual Fee
Consider whether the card's annual fee is worth the benefits it provides. Some cards offer a waived annual fee for the first year, giving your business time to grow before incurring this expense.
4. Additional Perks
Many credit cards come with helpful perks tailored to business needs, such as free employee cards, travel insurance, and purchase protections. Evaluate which perks are most valuable to your startup and compare their offerings.
Now that we know what to look for let's explore the top credit cards for startups.
Best Credit Cards for Startups
- The Blue Business® Plus Credit Card from American Express
- 2X Membership Rewards points on everyday business purchases up to $50,000 per year
- No annual fee
- Introductory 0% APR for 12 months on purchases
- Chase Ink Business Cash® Credit Card
- 5% cash back on office supplies and communication services, 2% cash back on gas stations and restaurants, and 1% cash back on everything else
- $750 cash back bonus after spending $7,500 in the first three months
- 0% introductory APR on purchases for 12 months
- No annual fee
- Capital One® Spark® Cash for Business
- 2% cash back on all purchases
- $500 cash back bonus after spending $4,500 in the first three months
- $95 annual fee (waived for the first year)
- Bank of America® Business Advantage Cash Rewards Mastercard®
- 3% cash back on a selected category, 2% cash back on dining, and 1% cash back on everything else
- $300 statement credit after spending $3,000 in the first 90 days
- No annual fee
Best Credit Cards For Startups Example:
Imagine you're launching a software development startup. You find that you spend a lot on office supplies and communication services. In this case, the Chase Ink Business Cash® Credit Card would be an excellent choice. With its 5% cash back on these categories, you'd maximize your cash back benefits. Additionally, the 0% introductory APR and $750 bonus make this card even more enticing as it helps ease some initial costs and manage cash flow better in the early stages of your startup.
By now, you should have a solid understanding of what to look for in a credit card for your startup and some of the best options available. Don't forget to assess your startup's unique spending patterns and financial needs to make the most informed decision. Once you've determined the right card for your business, you'll be well on your way to financial success! Be sure to share this article with fellow entrepreneurs and explore other guides on Flik Eco for more invaluable financial insights!
