Starting a business can be an exciting but equally challenging venture. One key aspect of getting your start-up running smoothly is managing finances effectively, and that's where choosing the right credit card comes in handy. To help you navigate the sea of options, we've compiled a list of the best credit cards for start-up businesses. Read on to find the one that best matches your needs and offers the most rewards for your growing enterprise.
Best Credit Cards For Start Up Businesses Table of Contents
Why do Start-ups Need a Business Credit Card?
Using a credit card specifically designed for business expenses can provide multiple benefits for start-ups, such as:
- Separating personal and business expenses
- Providing purchase protection and travel benefits
- Earning rewards and cashback on business expenses
- Building a strong business credit history
- Accessing additional credit for growth and expansion
Top Credit Cards for Start-up Businesses
Here, we present our top picks for the best credit cards catering to start-up businesses, covering essential features, rewards, and fees.
1. American Express Blue Business Plus Credit Card
The Amex Blue Business Plus is a popular choice for start-ups, thanks to its simplicity and valuable rewards program. With this card, users can earn 2x Membership Rewards points for every dollar spent on the first $50,000 in purchases annually, and 1x point for every dollar thereafter.
This card also comes with no annual fee and a 0% introductory APR on purchases for the first 12 months, which can be incredibly helpful for managing finances during your initial business stages.
2. Chase Ink Business Preferred Credit Card
This card is an excellent option for start-ups, especially those with high travel or advertising expenses. The Chase Ink Business Preferred offers 3x points for every dollar spent on travel, shipping, Internet, cable, and phone services, and advertising on search engines and social media (up to $150,000 annually).
Furthermore, new cardholders can earn an impressive sign-up bonus of 100,000 points after spending $15,000 within the first three months. The annual fee is $95, but the rewards and benefits can quickly offset this cost.
3. Capital One Spark Cash for Business
If your start-up prefers cashback rewards, the Capital One Spark Cash for Business card offers unlimited 2% cashback on all purchases. Additionally, there's a one-time $500 cash bonus after spending $4,500 within the first three months.
This card comes with an annual fee of $95, which is waived for the first year. With its straightforward rewards structure and valuable cashback benefits, the Spark Cash card is an excellent option for any start-up.
4. Bank of America Business Advantage Cash Rewards Mastercard
The BofA Business Advantage Cash Rewards card offers a tiered cashback rewards system, with 3% cashback on a category of your choice (including gas, office supplies, and travel), 2% on dining, and 1% on all other purchases ($50,000 annual cap on the 3% and 2% categories).
New cardholders can also earn a $300 statement credit after spending $3,000 within the first 90 days. This card has no annual fee and a 0% introductory APR on purchases for the first nine months.
Best Credit Cards For Start Up Businesses Example:
Let's consider this simple example: Sarah is starting her own graphic design business and spends significant amounts on advertising and travel (flights and accommodations).
After reviewing her options, Sarah decides on the Chase Ink Business Preferred Credit Card. Thanks to the card's rewards structure, she's able to maximize her points on travel and advertising expenses, making it the right choice for her business needs. Plus, the generous welcome bonus helps her further leverage the card for her start-up's benefit.
Choosing the right credit card can make a significant difference in how efficiently you manage your start-up's finances. With the options provided in this guide, you are one step closer to setting your new venture up for financial success. Don't forget to share this valuable info with fellow entrepreneurs and explore other articles on Flik Eco to help your start-up grow and thrive.
