Have you get to know the Best Cards for Small businesses? If you haven’t then here is a chance for you to get to know all about it. I am going to be giving you reviews about each Credit card and also things attached to it.
So if you want to know all about this article, here is a chance for you to simply grab all the necessary information as soon as possible.
Best Cards for Small Business
A business credit card is an ultimate tool for access to the credit you need to grow your business while also reaping in cash back, rewards, and some other valuable perks to help your small business thrive. Business credit cards are not simply just limited to large enterprises: Many savvy freelancers, startups, and also sole-proprietors are excellent candidates for a small business credit card.
Types of Small Business Credit Cards
Invest some time in determining the ideal type of small-business credit card for your business so that you can be able to then reap the most valuable benefits. Here is a breakdown of different types of business credit cards and how they may then appeal to you based on your business objectives:
Small-Business Cards
A small-business credit card is a consumer or user card geared toward business owners who simply operate on a smaller scale (like solo entrepreneurs, and freelancers). These types of cards are simply obtained based on the business owner’s personal credit (though you can open a small-business card that helps you build your business credit), and also then provide rewards for everyday purchases one would usually make within their small business.
Corporate Business Cards
A corporate credit card is simply issued to the business entity, not the individual business owner (or owners). With the corporate card the business entity is fully responsible for all charges made on the card. This type of business card is simply only issued to large businesses with established financial histories, and also solid business credit scores. This type of card may then be best for your business if you have a large number of employees and even complete large transactions frequently in your day-to-day business operations.
Pros and Cons of Credit Cards for Small Business
Pros
- Lenient qualification: It can be very easy for you to qualify for a business credit card than a line of credit or a bank loan.
- Credit limits: Business credit cards usually offer a higher credit limits than consumer credit cards.
- Funds access: A business credit card can even help address cash flow concerns.
- Tax season simplification: Keeping business expenses separate from the personal expenses makes the tax records simpler to unravel.
Cons
- Liability: You can simply be personally liable for any unpaid debt on the cards, and business credit can affect your personal credit.
- Fewer protections: Business credit cards are not been required to offer the same consumer protections as personal cards under the Credit CARD Act of 2009, but many issuers do voluntarily extend these protections to their business products.
- Higher interest: They can be very expensive, with relatively high average interest rates and also fees. These costs can simply eat away at your business’s bottom line if you are not careful.
Startup Business Credit Cards With No Credit
Well, if you want to then set up a business and then you simply need a Credit Card that has no annual fee, so you can have enough money for the business. Then you are covered in this article, you are going to see some of the credit cards that demand zero annual fees when they are been used. This can then help you save more money and invest in your business.
Small Business Credit Card
Here are the credit cards that can be used for small businesses below:
Ink Business Preferred® Credit Card
This is an all-star, and also a top-pick business credit card with one of the most lucrative welcome bonuses available on any business credit card in the marketplace. Let’s not forget to then emphasize that Chase Ultimate Rewards points are also arguably the most valuable credit card points out there. The bonus spending categories offered by this card are very attractive and even relevant for start-ups and small businesses.
Rewards:
Cardmembers can simply get 3 points per dollar on the first $150,000 spent on travel and even select business categories each account anniversary year and 1 point per dollar on all other purchases. A cardmember that simply takes maximum advantage of the rewards-earning potential would then be able to generate an impressive 450,000 points on combined purchases on those categories alone.
Even if it is redeemed for a baseline statement credit at a penny a point, 450,000 points would have a value of $4,500. Card users can also have the option to redeem points to book travel through Chase Ultimate Rewards with a 25% bonus that would then increase the value of 450,000 points to $5,625.
Savvy travelers also know that the best value of Chase Ultimate Rewards points is then simply found within the flexibility of transferring as needed to the 12 airline and 3 hotel Chase Ultimate Rewards transfer partners, where the value of the points can even exceed more than two cents each, for a potential staggering value of $9,000+.
Welcome Offer:
100,000 points after you spend $15,000 on purchases in the first 3 months from account opening
Annual Fee: $95
Benefits and Drawbacks: There is a Significant travel protection (trip cancellation and interruption for up to $5,000 per trip), primary rental car insurance, cell phone insurance (up to $600 per claim), no foreign transaction fees and also no additional cost for the employee cards make this card good for more than just earning rewards. Ink Business Preferred® Credit Card has even a lower annual fee compared to competitor business credit cards.
Some tech-startups or small businesses may then consider the $15,000 spending requirement been needed within the first 3 months of account opening in order to simply get or obtain the generous welcome bonus of 100,000 bonus points as a drawback. It is even higher than other business credit cards, but the lucrative welcome bonus is then certainly worth being vigilant towards completing the spending threshold.
Ink Business Unlimited® Credit Card
A competitive no-annual-fee business credit card that simply let card members to be able to earn unlimited 1.5% cash back on every purchase.
Rewards:
The Ink Business Unlimited Credit Card simplifies earnings through unlimited 1.5% cash back so that the business owners can be able to then focus on other areas of their business without having to worry about learning the ropes to earning and also redeeming points. Points can even be redeemed for statement credits, gift cards or travel at a 1 cent per point.
Welcome Offer:
Earn $750 bonus cash back after you have simply spent $7,500 on purchases in the first period of 3 months from account opening. The Ink Business Unlimited also then offers a 0% introductory APR for the period of 12 months on purchases, then a 14.74% – 20.74% variable APR applies.
Annual Fee: $0
Benefits and Drawbacks: This card does not even charge a fee for employee cards, offers extended warranty, included purchase protection for about up to 120 days, the ability to combine “cash back” earnings with Chase Ultimate Rewards personal and even with business credit cards for maximized travel redemption potential.
But, there are a few downsides you should be take note of. The Chase Ink Business Unlimited has a foreign transaction fee and does not offer bonus spending categories.
Some may argue or think that the card falls short of other comparable cards that offer 2% cash back (such as with an annual fee, waived the first year) or a card that simply offers matched earned cash back at the end of the first year (such as the Discover it® Business Card). But, if simplicity is the key, earning a straightforward 1.5% cash back with the Chase Ink Business Unlimited may even be a better fit for a small business or tech startup with a lower annual expense volume without even having to pay a high annual fee for a card with unlimited 2% cash back that could potentially offset the earnings.
American Express Blue Business Cash™ Card
The no-annual-fee American Express Blue Business Cash™ Card is clearly nearly identical to The Blue Business® Plus Credit Card. The main difference is that the card’s rewards are in the form of cash back rather than Membership Rewards points.
Rewards: 2% cash back on all eligible purchases on about up to $50,000 per calendar year, then 1%
Welcome Offer: $250 statement credit after making a $3,000 in purchases within the first 3 months of account opening
Annual Fee: No annual fee
Benefits and Drawbacks: The card’s $0 annual fee (Terms apply. See rates and fees) and also even compelling 2% cash back in all categories makes it a rewarding choice for the business owners that spend up to $50,000 annually.
But, since the 2% cash back rewards are simply capped at $50,000 in annual spending, this card might not be the best fit for all the startups and new businesses that incur high expenses annually. American Express might not even be as widely accepted by merchants as much as Visa or MasterCard.
American Express® Business Gold Card
The American Express® Business Gold Card simply offers a unique and even tailored approach for businesses to be able to generate 4 points per dollar automatically on eligible expense categories that they have simply spend the most during each billing cycle. As time goes by, the expenses can also evolve throughout the stages of the business and the American Express® Business Gold Card will automatically reward the two top categories with a very lucrative 4 points per dollar for the first $150,000 in combined purchases from these 2 categories each calendar year.
Membership Rewards® points are simply valuable and also well-regarded and offer exceptional value when booking travel by transferring to airline and even hotel transferred partners.
Rewards:
Earn 4 Membership Rewards® points per dollar on the 2 select categories where a business spends its most each month. 1 point per dollar is simply earned for other purchases. The 4 point per dollar earning rate can then applies to the first $150,000 in combined purchases from the 2 eligible categories each calendar year. The categories include: airfare purchased directly from airlines, U.S. advertising purchases in select media (online, TV, radio), purchases made directly from select U.S. technology providers of computer hardware, software, and also cloud solutions, U.S. gas stations, purchases at restaurants worldwide, and shipping.
A card member or user which then takes maximum advantage of the 4 points per dollar rewards-earning potential would generate an impressive 600,000 points on combined purchases on those categories alone.
Welcome Offer: 70,000 Membership Rewards® points after simply spending $10,000 on eligible purchases within the first 3 months of opening an account.
Annual Fee: $295 (Terms apply. See rates and fees.)
Benefits and Drawbacks: Card members or users can then redeem points to book flights through American Express Travel using Membership Rewards® Pay with Points and also even get 25% of those points back (up to 250,000 points back in a calendar year). Points can also be transferred to American Express’ airline and even hotel transfer partners.
But, the $295 annual fee is very high compared to other business credit cards, and the 4 points per dollar two-category spend is even capped at $150,000 annually.
The Business Platinum Card® from American Express
Known for its prestigious reputation, The Business Platinum Card® from American Express (terms apply, see rates and fees.) will cost a pretty penny. But, it simply offers an array of premium benefits with values that can even exceed the expense of the annual fee when used.
Rewards:
Earn 5 Membership Rewards® points per dollar on flights and also prepaid hotels through American Express Travel, 1.5 points per dollar on eligible purchases at U.S. construction material and hardware suppliers, electronic goods retailers and even software and cloud system providers, and also shipping providers, as well as on purchases of $5,000 or more everywhere else, on up to $2 million of these purchases per calendar year and 1 point per dollar on other eligible purchases.
Welcome Offer:
120,000 Membership Rewards® points after spending $15,000 on eligible purchases with the card within the first period of 3 months of card membership.
Annual Fee: $695
Benefits and Drawbacks: This card is very heavy on the perks. Card holders or users can even access airport lounges worldwide through Priority Pass after enrollment, access American Express Centurion Lounges, and also get access to Delta SkyClubs when flying Delta same-day. Card holders or users can also receive up to $200 in annual credits for incidental airline fees towards an eligible airline you select/enroll with each year, TSA PreCheck™ or Global Entry application fee reimbursement, and also Gold elite status with Marriott and Hilton when you enroll.
Points can be then redeemed for flights with the cardholder’s or users preferred airline where they will then get or receive a 35% rebate up to 1,000,000 bonus points per calendar year. Additionally, points can also be transferred to American Express’ airline and even hotel transfer partners.
The card’s annual fee is very steep compared to others and while the welcome bonus requires a large spending threshold. Rewards earning is not even compelling on everyday spend with this card.
Brex 30 Card
What makes the Brex Card so unique amongst other small business credit cards is that the cardholder or user is simply not required to personally guarantee the debt incurred on the card. Brex makes its determination of creditworthiness based on the evaluation of a company’s available liquid capital and also an assessment of investors and plus overall company spend.
The Brex Card is a consideration for businesses that are already capitalized but don’t have a lengthy credit history. The card lets for small businesses and start-ups to simply create or build business credit as Brex partners with Dun & Bradstreet and Experian to report on-time payments.
Rewards:
The Brex Card offers a few rewards-earning options that you can simply select or choose from as a cardholder, but the classic option awards 1 point per dollar spent on general everyday purchases and also offers bonus rewards on a number of categories. The specific bonus categories are: 7 points per dollar on rideshares (Lyft, Uber, etc), 4 points per dollar for travel booked through Brex, 3 points per dollar on restaurants and also even 2 points per dollar on recurring software subscriptions. Cardholders or users can also opt to pay their bill daily in order to then get or earn slightly elevated rewards.
Card members can even redeem rewards for maximum value by simply transferring points to one of the airline transfer partners. Partner airlines span across the three major airline alliances and also include Singapore Airlines, Air France, Qantas, Cathay Pacific and more.
Annual Fee: $0
Benefits and Drawbacks:
The Brex Card does not even require a personal guarantee, and there is no security deposit or personal credit check required when you want to apply. The card even allows businesses access to higher credit limits than comparable traditional small business cards.
Card members or users can also receive exclusive access to a suite of valuable tools and even memberships relevant to startup businesses (Salesforce, Zendesk, WeWork, Google Adwords, AWS, etc.). Additionally, the card is then designed to simplify expense reconciliation with compatibility to Quickbooks, Expensify, Xero and lots more.
The major drawback is that a business must then have an amount between, $50,000 – $100,000 available in liquid capital to apply, and the Brex Card is also a charge card rather than a credit card, meaning that the balance is due in full and on time each billing cycle.
FAQs
Who Can Apply For A Small-Business Credit Card?
Small-business credit cards are simply for anyone that is simply trying to make a profit by selling goods or services. That goes for all sole proprietors: freelance workers, independent contractors and also gig-economy workers. You do not have to be a limited liability company (LLC), corporation or any other formal business structure. And also you do not have to have an employer identification number (Will you simply carry A Balance on Your Business Credit Card?
Compare the APRs on the credit cards which you are simply considering. If you carry a balance from one month to another, then expect to pay interest, so finding a credit card with the lowest APR possible will help mitigate costly charges on your account.
Can You Get A Business Credit Card Without A Personal Guarantee?
Though it is very uncommon, business credit cards that do not even require a personal guarantee do exist. But, there is just usually a tradeoff. Instead of you to be providing a personal guarantee, you will then usually need to link a corporate bank account with a large balance, also provide proof of significant business profits or offer business assets as collateral.
One popular option is the Brex 30 Card. To be approved for the card, you simply just need $50,000 in your bank account if professionally invested, if not an amount of $100,000.
Can I Get A Business Credit Card With Bad Credit?
You can then even get a business credit card with bad credit but your choices will be then limited to either a secured business credit card or one of a small handful of unsecured business cards available to those with bad credit.
If you do then choose or select one of these options, a worthy goal is to use the card to help build or repair your credit so that you can eventually qualify for a more optimal choice.
Do I Need An Employer Identification Number (EIN) To Get A Small Business Credit Card?
You don’t even need an employer identification number to get a small business credit card. If you are a sole proprietor or even are not set up with an EIN, you can simply then apply for a business card using your Social Security number.
Simply then take note that when you apply for a business card you are also personally liable for any debts you simply accrue on the card. So even if your business goes belly up, you are still on the hook for any balance left on your business credit card.
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