Starting a small business can be an exciting yet daunting venture. One crucial element to consider in your journey is ensuring that you have the right financial tools to help you effectively manage your expenses and cash flow. One particularly helpful tool that often goes overlooked is the use of a starter credit card for small business needs. These credit cards can provide you with not only the convenience of easy transaction management but also the opportunity to build credit for your burgeoning business. In this article, we'll explore some of the best starter credit cards for small businesses and discuss the benefits of using them!
Starter Credit Cards For Small Business Table of Contents
What is a Starter Credit Card for Small Businesses?
A starter credit card for a small business is a type of card specifically designed for entrepreneurs who are just beginning their journey. These cards usually have lower credit limits and fewer perks than traditional business credit cards but are easier to qualify for, especially if your business is new or you have a limited credit history.
Benefits of a Starter Credit Card for Small Business
- Separates personal and business expenses: With a dedicated business credit card, you can keep your personal and business expenses separate, making it easier to manage your finances and prepare for tax season.
- Helps build business credit: By making timely payments and keeping utilization low on a starter credit card, you can begin establishing a business credit profile, which can make it easier to qualify for loans and larger credit lines in the future.
- Earn rewards: Many starter credit cards offer rewards programs, such as cashback or points, which can help offset some of your business expenses, including office supplies, travel, and more.
- Provides added conveniences: A business credit card can offer added features like expense tracking, employee cards, and fraud protection to make managing your business finances easier.
The Best Starter Credit Cards for Small Businesses
Capital One Spark Classic for Business
Chase Ink Business Cash
American Express Blue Business Cash
Starter Credit Cards For Small Business Example:
Let's say you've just launched your small graphic design business and are looking to separate your personal and business expenses. You decide to apply for the Chase Ink Business Cash card and are approved with a credit limit of $5,000.
Over the next few months, you spend $1,000 at office supply stores (earning $50 in cashback rewards) and $2,000 on other business expenses like travel and advertising (earning $20 in cashback rewards). Additionally, you take advantage of the 0% introductory APR to finance the purchase of a new laptop for your business without incurring interest charges. Furthermore, you use your card responsibly, pay on time, and build your business credit history.
Starting your small business journey with the right financial tools can set you up for success. A starter credit card for small businesses can help you manage your expenses effectively, earn rewards, and build credit for future financing needs. As your business grows, you may even consider upgrading to higher-tier credit cards to take advantage of more perks. So go ahead, explore the various starter credit card options, and find one best suited to your needs. And don't forget to share this article with fellow entrepreneurs and check out more personal finance and investing tips on Flik Eco!
