Starting a new business is an exciting journey, filled with opportunities and challenges. One of the best ways to fund and manage those initial expenses is by using a business credit card. In this Flik Eco guide, we'll walk you through some of the best credit cards for new businesses and help you decide which one fits your business needs best.
Credit Cards For New Business Table of Contents
Benefits of Business Credit Cards
Before diving into our recommendations, let's look at some of the benefits that come with using a dedicated business credit card:
- Better cash flow management - Business credit cards allow you to better manage cash flow, enabling you to utilize credit to cover expenses while waiting for payments from clients.
- Expense tracking - Most credit cards come with expense management features, which make it easier to separate business and personal expenses and track your spending.
- Rewards and discounts - Many credit cards offer rewards, such as cashback or points, which can be particularly helpful for new businesses with limited budgets.
- Building credit history - By using a business credit card responsibly, you can build your business credit score, which may help in securing loans and financing in the future.
Top Credit Cards for New Businesses
Now that we have covered the benefits of using business credit cards, let's explore some of the best options for new businesses:
1. Chase Ink Business Cash Credit Card
- Introductory offer: $750 cashback after spending $7,500 within the first three months.
- Rewards: Earn 5% cash back at office supply stores and on internet, cable, and phone services up to $25,000 in combined purchases each account anniversary year.
- Interest rate: 0% introductory APR on purchases for the first 12 months, then a variable APR applies.
- Annual fee: $0
2. American Express Blue Business Plus Credit Card
- Introductory offer: Earn a $250 statement credit after spending $3,000 within the first three months, limited time offer.
- Rewards: Earn 2X Membership Rewards points on everyday business purchases, up to $50,000 each year.
- Interest rate: 0% introductory APR on purchases for the first 12 months, then a variable APR applies.
- Annual fee: $0
3. Capital One Spark Cash for Business
- Introductory offer: Earn a $500 cash bonus after spending $4,500 within the first three months.
- Rewards: Earn 2% unlimited cashback on all purchases.
- Interest rate: Variable APR applies.
- Annual fee: $0 for the first year, then $95 per year.
Credit Cards For New Business Example:
Choosing the Right Card for Your Startup
Imagine you're launching an e-commerce business specializing in sustainable products. After reviewing the options above, you decide that the Chase Ink Business Cash Credit Card is the best fit for your needs.
Here's how you can make the most of this card's features:
- Use the card to purchase office supplies and pay for internet services to take advantage of the 5% cashback rewards.
- Utilize the 0% introductory APR to help manage cash flow in the early stages of your business by spreading out payments for inventory or marketing expenses.
- Take advantage of the $750 cashback bonus to help offset the costs of setting up your website and marketing materials.
Congratulations on taking the first steps towards building your new business! As you embark on this journey, remember that having the right financial tools, like a business credit card, is crucial to your success. By selecting the right card and using it wisely, you can maximize rewards, manage expenses, and grow your business faster. Don't forget to share this comprehensive guide with fellow entrepreneurs and explore other Flik Eco resources for more valuable tips on personal finance and investing.
