Using one of the best small business credit cards can aid your business credit score, which can help in the future when you need to apply for a loan or additional financial assistance. Over and above this, the right credit card can offer you numerous advantages when it comes to streamlining your cash flow and keeping operations running smoothly.
Modern business owners will already know that every cent they spend counts, especially in today’s economic climate. Having a credit card can help you make the most of each of your business transactions while enjoying a range of additional rewards and perks to boot.
Business credit cards are designed to offer a wide range of benefits, especially for smaller businesses. These benefits range from cash backs and financial rewards to insurance protections, expense management services, and much more.
The trick to finding the ideal credit card for your business is identifying which features and services will benefit your company the most, whether they are rewards, cashback, or an improved credit score. Once you have recognized these features, you can find a card and a matching account that meets your requirements, simplifying the running of your business.
So, what is the best credit card for your small business? Let’s dive in and help you find the right option for your specific needs!
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What is a Small Business Credit Card?
A small business credit card works in the same way as any other standard credit card. It offers you a credit facility that allows you to make business-related purchases now and pay for them later.
However, these cards also have several other features custom-picked for small business owners. These include special offers like travel rewards points, rewards for certain business purchases, and trusted tracking and managing expenditure methods.
The Benefits of Having a Business Credit Card
Here are just a few of the most significant benefits of having a business card at hand. A suitable small business credit card will:
Enable you to keep personal, and business expenses separate
Having a dedicated business credit card simplifies your life. Especially come tax time when you have to file business expenses separately from your personal costs.
Help you track and manage your expenses
Tracking business expenses is a time-consuming and tedious task, but a credit card can help. Many cards come with dedicated apps that allow you to tag purchases as you make them, attach pictures of invoices and receipts, and more. These features and accounting software integration make monthly expense tracking and tax management significantly more manageable in the long run.
Help you keep to your spending limits
All credit cards have pre-set and adjustable spending limits. If you exceed these limits, you will incur fees, and your card will be declined. It is an excellent incentive to keep within your business’s spending limits and stabilize your cash flow to avoid unnecessary penalties.
Enable you to carry a debt balance from month to month
You can carry your debt balance forward indefinitely with a credit card if you make the minimum monthly repayment. Bear in mind that this balance will accrue interest and may affect your credit score in the long term. However, it can help you get your small business off the ground.
Allow you to keep track of employees’ expenditures
You can easily monitor any money that your employees spend at work using the monthly statements from your business credit card. It allows you to keep tabs on any expenses related to your business, avoiding additional claims from employees come month-end.
Streamline your cash flow
Credit cards can alleviate cash flow issues and allow you to pay all of your bills on time without incurring late fees or penalties when money is tight. Business credit card limits tend to be higher than personal credit card limits, so your card should allow you to pay off your most substantial obligations quickly.
Certain business cards even come with flexible payment terms and special offers, like 0% APR financing for a year after opening the account, which means that you won’t need to pay interest on your card charges for a year or longer.
Enable you to reap big rewards
Banks are highly competitive institutions, which is why they offer so many unique and rewarding perks to business credit cardholders. Many rewards programs offer large sums of loyalty points, bonus rewards, and promotional deals on big purchases or expenditures in categories like fuel and plane tickets, WiFi costs, office supplies, and more.
Some banks even go the extra mile by offering you perks like premium airport lounge access, free hotel stays, upgrades, and security line passes for business-related travel. There are also plenty of cashback rewards to be reaped whenever you spend with your credit card.
Help you build a good credit score
Having an excellent credit score is a significant benefit for any business. The best way to improve your credit score is to pay your credit card bill in full every month. If you can do so, your business may qualify for loans, equipment leases, good vendor terms, and low business insurance rates, among other benefits. It can set you up for significant growth opportunities.
Offer automatic insurance on your purchases
Owning a business means dealing with constant risk. A small business credit card can reduce the amount of risk you face by offering insurance and warranties against certain eventualities like the damage or theft of items you have purchased with your card. You may enjoy extended warranty and refund periods, which is very useful for office electronics.
The Best Small Business Credit Card Options
What is the best small business credit card for your specific enterprise? The answer to this question is complex. It depends on your business’s needs, the stability of your cash flow, and other vital factors.
However, some small business credit cards are favored across industries for their great rewards and flexible features. These are some of the most popular business credit card options to consider for your small business.
- Chase Ink Business Cash Credit Card
This business credit card will start you off with a generous $500 sign-up bonus if you spend over $3,000 with your card in the first three months of owning it. It also offers numerous perks for business owners, including 5% cashback on the first $25,000 spent at office supply stores and annual cable, phone, and internet services; 2% cash back on the first $25,000 spent at fuel stations and restaurants each year; and a further 1% cashback on all other business purchases.
This credit facility has no annual fees, offers employee cards at no additional cost, and boasts a 0% introductory APR for 12 months on all purchases and balance transfers.
- Marriott Bonvoy Business American Express Card
This card offers an affordable annual fee of just $150, along with a sign-up bonus of 50,000 Marriott Bonvoy points if you spend $1,500 within the first three months of owning your account.
The credit company offers 5 points per dollar spent at select Marriott Bonvoy hotels; 3 points per dollar spent at US-based fuel stations and restaurants, on national shipping purchases, or for domestic mobile services; and 2 points per dollar spent on all other eligible business categories.
- Capital One Spark Cash Plus
Small business owners have enough complicated calculations to perform already. This best business small credit card keeps things simple by offering holders a flat, unlimited 2% cash back on every purchase they make using their Capital One Spark Cash Plus cards.
- Bank of America Business Advantage Travel Rewards World Mastercard
This card is a great choice for business owners who want a fee-free travel card with robust ongoing reward offerings. The credit card earns 1.5 points for every dollar spent and 3 points per dollar on all travel purchases booked through the Bank of America. It also comes with a sign-up bonus of 30,000 points for a no-fee card.
- Brex Card
Most cards designed for small businesses and entrepreneurs require cardholders to guarantee the debt incurred on their cards personally. The Brex Card does things differently. Brex determines your business’s creditworthiness based on a thorough evaluation of your spending patterns, investors, and cash balance. If your business is relatively new and you have a young credit score but are well-capitalized, this may be a suitable option for your needs.
The Brex Card earns you 1 point per dollar spent on all purchases. If you make it your sole company card, you will also earn rideshare rewards, all travel booked through Brex, Apple products, restaurants, and recurring software expenses. You may also qualify for special offers from business service providers like Google Ads, Amazon Web Services, Salesforce, and WeWork, among others.
New cardholders will receive a sign-up bonus of 10,000 points when they spend their first $1,000 on the card, another 10,000 points when they spend $3,000 within three months, and 20,000 more points when they link payroll to their Brex accounts.
The Takeaway
If you’re still wondering what the best small business credit card is for your small business, the answer will largely depend on your business’s age, needs, credit score, and cash flow.
Carefully assess your company’s financial standing and the benefits you would most like to gain from the best small business credit card options. Then, select a credit facility according to those requirements. Use your credit card correctly and pay off your debt regularly each month, and you may soon say goodbye to cash flow concerns and month-end stress for good.
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