There are a lot of business credit cards out there, and most of them offer similar benefits. But there are some that are better suited to startups than others.
Here are some of the best business credit cards for startups.
Best Business Credit Cards For Startups
What Are Business Credit Cards For Startups
Business credit cards are designed for businesses and small businesses. They provide many benefits, including a low interest rate, no annual fee and bonus points.
Best Business Credit Cards For Startups Introduction
The best business credit cards for startups offer some of the best features out there. They can help you save money on your business expenses while providing you with lower interest rates than other types of loans.
There are some things to consider before applying for a business credit card as a startup:
Your credit score – A lower score means less borrowing power and higher interest rates.
Your startup’s cash flow – You need to be able to make payments on time in order to qualify for a good business credit card.
Your personal finances – A bad personal balance could cause problems when using your card for business purchases.
Best Business Credit Cards For Startups
Without further ado, let’s jump right in!
1. Brex Card for Startups
Brex is a startup fund that provides a credit card to help build and grow your business. Brex Card for Startups.
We know that starting and running a business is hard work. You need capital, but you also need flexibility — to make changes quickly and easily, without being tied down by restrictive contracts or high fees.
The Brex Card for Startups helps you get the funding you need while giving you complete control over how you use it.
With the Brex Card for Startups, you can spend up to $10,000 per month with no annual fee, no credit check and no deposit required. Once approved, we’ll send out your card within 7 days with the funds available immediately after approval.
You can spend as much as $1 million over the life of your account (subject to approval). You’ll get a free virtual card within minutes of approval so you can start using it right away!
Best for providing all-in-one finance for start-ups
Brex Card for Startups is a credit card program that provides small businesses with everything they need to get started.
This card is ideal for young companies who are just starting out and want to grow their business credit history. The card provides a way to build your credit score while also giving access to the funds needed to start building your company.
It offers a great value proposition with no annual fee, no balance transfer fee and no foreign transaction fee. This can help keep costs down so you have more money left over from your sales to invest back into your business.
The card also offers some other great perks that make it an attractive option for startups:
- No annual fee
- No balance transfer fee
- No foreign transaction fee
Features
The Brex Card for Startups is a credit card designed with the needs of startups in mind. This card offers a number of features that are ideal for small businesses and even startups.
Professionals who use this card can enjoy many benefits that include:
No annual fee: You will not have to pay any annual fee on this card. This makes it ideal for those who are just starting up their business, as they won’t have to worry about paying these fees.
The lack of an annual fee also makes it a great option for those who don’t want to spend too much on their credit card.
Cashback: The Brex Card for Startups provides you with cashback on all your purchases, which can be redeemed at any time.
You can use this cashback to buy office supplies, equipment or any other expenses related to your business.
No foreign transaction fees: Many credit cards charge you extra when you make purchases outside of the country.
However, this isn’t the case with the Brex Card for Startups because it doesn’t charge any foreign transactions fees at all!
Brex offers everything you need to grow your company faster, from cards and capital to built-in spend management software and live support.
2. Capital One® Spark® Classic for Business
The Capital One Spark Classic for Business is a great option for small businesses looking for a straightforward business credit card with no annual fee. It has no foreign transaction fees and has a few benefits that are useful to small businesses, such as extended warranty protection and purchase protection.
The Capital One Spark Classic for Business offers: no annual fee, Extended warranty protection and purchase protection
Best for building business credit and earning cash back at the same time
The Capital One® Spark® Classic for Business is a rewards card designed for small to mid-sized businesses with good or excellent credit. The card’s best feature is its cash back rewards program that lets you earn 1% cash back on every purchase, plus an additional 10% bonus each time you redeem.
This means 1% cash back on all purchases, 11% cash back on redemptions and 2% more when you spend $5,000 in a single statement cycle. You can also transfer your rewards points to participating hotels and airlines without any blackout dates or restrictions.
The Capital One® Spark® Classic for Business comes with no annual fee and no foreign transaction fees, which makes it perfect for traveling abroad. Bonus features include 24/7 fraud monitoring and identity theft protection, as well as free credit score access through CreditWise, a free online tool that allows you to monitor your financial health over time.
If you’re looking for a card that offers both travel rewards and business financing options, then the Capital One® Spark® Classic for Business may be the right choice for you.
Features
No annual fee.
Earn unlimited 2% cash back on purchases at restaurants and on local transit like Uber, taxis and more, up to $1,500 in combined purchases each quarter.
Plus earn unlimited 1% cash back on all other purchases – it’s automatic!
Redeem your rewards anytime with no blackout dates.
Use them to cover travel expenses or just treat yourself to something special.
Get built-in identity theft protection for all your Capital One cards. Plus enjoy $0 fraud liability protection for unauthorized transactions made with your card (fees apply).3
The Capital One Spark Cash Plus* is an excellent business cash-back card for those with strong credit. The annual fee of $150 is palatable compared to many high-end card fees.
3. The Business Platinum Card® from American Express
If you’re a frequent traveler who travels for business, the Business Platinum® Card from American Express is a great choice. It has a high annual fee of $450, but it offers extensive travel benefits that can save you money and make your trips more enjoyable.
The card provides travel protection and many other perks that are useful for business travelers.
If you’re willing to spend $450 annually on your credit card, the Business Platinum Card® from American Express offers a lot of rewards and benefits. These include access to airport lounges around the world, free global concierge service, complimentary premium in-flight WiFi and much more.
Best for benefits and rewards.
If you’re looking for a premium card that offers the best of everything, this is it.
The Business Platinum Card® from American Express offers a wide range of benefits:
Unlimited lounge access: You get unlimited access to Centurion Lounges, which are located in airports around the world.
These lounges offer complimentary food, drinks and Wi-Fi — a great place to relax before your flight.
Airport lounge access: You also get access to Delta Sky Club lounges when traveling on Delta flights, which can be useful if your flight is delayed or canceled.
Special travel perks: You’ll receive reimbursement for Global Entry or TSA PreCheck application fees as well as free TSA PreCheck or Global Entry for yourself and up to four travel companions every five years.
Purchase protection: You’re protected against theft or damage when shopping with the card at any store where Mastercard is accepted in the U.S., Canada and Puerto Rico (Mastercard is used at many more stores than Visa).
Features
The card’s $450 annual fee is waived for the first year, and this card comes with a sign-up bonus of 60,000 Membership Rewards points after spending $5,000 in purchases within the first three months.
Fees and Rates: The Business Platinum Card® from American Express has an annual fee of $450. There are no foreign transaction fees and no balance transfer fee, but there is a 3% fee on cash advances.
This card also has a late payment fee of up to $37 or 2% of the unpaid balance, whichever is higher.
The Business Platinum Card® from American Express is American Express' premier travel and Membership Rewards-earning card for small business owners.
4. Ink Business Unlimited® Credit Card
The Ink Business Unlimited® Credit Card is the first business card to feature a rewards program that offers unlimited points for every dollar spent. Earn 50,000 bonus points after you spend $5,000 in purchases on the card within the first 3 months of account opening.
Earn 5X points per $1 on the first $50,000 spent on purchases at office supply stores and on cellular phone, landline, internet and cable TV services each account anniversary year. Earn 2X points per $1 on the first $50,000 spent on purchases at gas stations and restaurants each account anniversary year.
There are no category restrictions or travel restrictions — use your points toward travel, cash back or statement credits.
The Ink Business Unlimited credit card has a sign-up bonus of 50k points after you spend $5000 in 3 months. It has no annual fee.
The rewards are flexible and can be used towards anything – travel discounts & statement credits!
Best for getting insights and staying in control of your business spending
The Ink Business Unlimited® Credit Card has no annual fee and offers a sign-up bonus of $500 in cash back after you spend $3,000 on purchases in the first 3 months from account opening. It earns unlimited 1.5 percent cash back on every purchase, with no rotating categories or sign-ups needed.
The card also comes with a 0 percent introductory APR for 12 months on purchases and balance transfers, and then the ongoing APR of 14.49% – 20.49% Variable APR. The card’s best feature is its strong rewards earning rate: Unlimited 1.5 percent cash back on every purchase means that even small businesses will quickly rack up rewards dollars when they use this card to pay for their everyday expenses.
The Ink Business Unlimited® Credit Card doesn’t have an annual fee, but it does have foreign transaction fees if you travel outside the U.S., so it’s not ideal if you plan to use it overseas often (for example, if you have an international business).
If you have a larger business that spends more than $25,000 annually in combined purchases on the card — or if you want greater flexibility over how to redeem rewards — consider applying for the Ink Business Preferred℠ Credit Card instead.
Features
The Ink Business Unlimited® Credit Card is one of the most popular business credit cards on the market.
It offers a number of great benefits that can help you grow your business, including: 2X points on every dollar spent at office supply stores and on wireless telephone services purchased directly from U.S. service providers.
-5X points per $1 spent on ads with social media influencers and search engine optimization (SEO) professionals
-Ink PlusSM Credit Card.
-No annual fee for the first year, then $95*
-Earn 60,000 bonus points after spending $5,000 in purchases on your new card within the first three months.
That’s $750 toward travel when you redeem through Chase Ultimate Rewards®.
Business owners can score significant rewards by using the no-annual-fee Ink Business Cash® Credit Card to pay for expenses.
5. American Express Blue Business Cash™ Card
American Express Blue Business Cash™ Card is a business charge card issued by American Express National Bank.
The card is intended for use in the United States, Puerto Rico and the United States Virgin Islands. It is not meant to be used internationally.
This card is available to both applicants with and without existing accounts with American Express.
The American Express Blue Business Cash™ Card requires excellent credit, as determined by the issuing bank, but does not require an existing relationship with American Express (except for people who have never applied for an American Express card before).
There are no reports that it’s possible to get this card without an existing relationship but it might be worth trying if you don’t have any other cards with the issuer.
This card does not report to your personal credit report. There are no known promotional codes for this card.
Best for buying above your credit limit
The Blue Business Cash Card from American Express offers 0% intro APR on purchases and balance transfers for the first 18 months of card membership, and no annual fee. It’s a great option for those who have high interest credit cards or need to transfer a balance from another card to get out of debt faster.
The Blue Business Cash Card from American Express is the best business cash back card on the market today because it rewards you with 2% cash back on gas and 3% cash back on restaurants and office supply stores — all with no annual fee.
The only drawback? You can only earn $250 per quarter in cash back rewards, which adds up to $1,000 annually if you spend $38,000 a year outside of business expenditures (which we estimate most small businesses do).
Features
The card provides 3% cash back on purchases made at U.S. office supply stores and on wireless telephone services, 2% cash back at U.S. gas stations and select U.S. department stores, and 1% cash back on all other purchases made with the card. Plus, there’s no annual fee for this card!
No annual fee
Annual percentage rate (APR) for purchases: 18.24% – 26.24% Variable APR for purchases based on your personal creditworthiness and ability to pay your balance in full each month
Annual percentage rate (APR) for balance transfers: 18.24% to 26.24% Variable APR for balance transfers based on your personal creditworthiness and ability to pay your balance in full each month.
The American Express Business Blue Cash Card is a cash back rewards business credit card ideal for small business owners who spend equal to or not much more than $50,000 each year.
6. Marriott Bonvoy Business™ American Express® Card
Marriott Bonvoy Business™ American Express® Card is a credit card issued by JPMorgan Chase Bank, N.A. The interest rate on purchases and cash advances is 18.99%, but some cards may have a higher APR for certain account opening features.
This card has a variable purchase APR of 18.99% to 24.99%. There is a balance transfer fee of either $5 or 5% (whichever is greater) for each transaction you make within your first 90 days as an account holder.
There is no annual fee for this card. The Marriott Bonvoy Business™ American Express® Card has no rewards program, but it does offer exclusive access to the Marriott Rewards® Premier Plus Credit Card or the Marriott Rewards® Premier Credit Card.
Marriott Bonvoy Business™ American Express® Card allows users to earn points by charging their purchases to their accounts, using points toward hotel stays or other travel-related expenses.
The Marriott Bonvoy Business™ American Express® Card comes with no foreign transaction fees and offers the best protection against fraud that any travel card can offer: Zero liability protection against unauthorized purchases made on your card, lost or stolen luggage insurance coverage equal to $1 million; emergency medical transportation.
Best for getting an approval decision in as little as 30 seconds
The Marriott Bonvoy Business™ American Express® Card is a great option if you’re looking to get approved quickly and get the most out of your rewards points.
The card comes with a $95 annual fee, but it offers a sign-up bonus of 60,000 bonus points after you spend $3,000 on purchases in the first 3 months from account opening and 5X points per dollar spent at participating Marriott Bonvoy hotels, which includes all of the SPG properties.
You’ll also earn 2X points per dollar on flights booked directly with airlines or through American Express travel, 1X point per dollar on all other purchases. plus, this card has no foreign transaction fees so you can use it abroad without paying extra fees.
Features
The Marriott Bonvoy Business™ American Express® Card offers a great rewards program with some of the best perks available. You’ll earn 5 points per $1 spent at Marriott and Starwood properties, 2 points per $1 spent on airline tickets purchased directly from the airline, and 1 point per $1 everywhere else.
You can also earn 3 elite nights or 50,000 bonus points (whichever comes first) when you spend $30,000 in purchases on your card in one calendar year. Elite nights are what make you an elite member of Marriott Rewards, so this perk is very valuable if you travel frequently with Marriott.
The card has no foreign transaction fees and it comes with a sign-up bonus: Earn 75,000 Bonus Points after you spend $3,000 on purchases in the first 3 months from account opening; enough for a free night at more than 1,200 hotels globally.
7. The Plum Card® from American Express
The Plum Card® from American Express is a credit card that offers some great cash back rewards. The Plum Card® from American Express is a premium credit card that offers some pretty amazing benefits, including:
- 5x Membership Rewards® points at U.S. restaurants or on flights booked directly with airlines or amextravel.com, up to $100,000 per year in purchases; 2x points at US supermarkets, on up to $25,000 in purchases (then 1x); 1x points on other purchases.
- A statement credit each year after you use your card to purchase a flight that is charged directly to the card through AmEx Travel.
- A $100 annual airline fee reimbursement.
- No foreign transaction fees when used abroad.
Best for those startups looking for a card with no annual fees in the first year of business
The card also comes with 0% intro APR on purchases and balance transfers for 12 months when you open the account, and there are no balance transfer fees. The Plum Card® from American Express also offers an introductory bonus of $100 after spending $1,000 within three months of opening your account.
There is a minimum spend requirement of $1,000 within three months of opening your account if you want to earn this bonus. If you have excellent credit (a FICO score greater than 720), you might be able to qualify for another credit card available through American Express called The Business Platinum Card® from American Express OPEN .
This card offers up to $200 in travel credits each year, complimentary airport lounge access and more benefits that may work better for your business needs than the Plum Card® from American Express .
Features
The Plum Card® from American Express is a rewards card that offers a generous sign-up bonus, high rewards rate and no annual fee. The card comes with a $250 welcome bonus after spending $3,000 in purchases within the first three months of account opening.
You also get a $100 statement credit for airline incidental fees (such as checked baggage fees) each year, as well as access to premium airport lounges for you and up to two guests when flying on any airline. The Plum Card® from American Express is one of the few credit cards that offers a 4% back on dining and entertainment (up to $1,500 in combined purchases per quarter).
It also has no foreign transaction fees, so you can use it anywhere in the world without worrying about extra fees. The Plum Card® from American Express has some attractive benefits:
- Airline Fee Credit: Get reimbursed for up to $100 in annual airline incidental fees such as checked baggage fees or in-flight food/drink charges, so long as they were charged by an airline or its affiliates
- Premium Airport Lounges: Enjoy complimentary access to over 900 airport lounges worldwide $250
- Welcome Bonus
What are Business Credit Cards for Startups?
Business credit cards are a great way to help your business grow. The right card can help you to save on travel, take advantage of discounts and rewards programs, and even get some of your expenses reimbursed.
But which business credit cards should you apply for? And what are the benefits of using a business card over other types of credit cards?
Here’s everything you need to know about business credit cards for startups.
What Are Business Credit Cards?
Business credit cards are payment cards issued to small businesses and sole traders, who use them to pay for goods and services that relate directly to their business. They’re often used for expenses related to marketing, advertising and travel, but they can also be used for any other expense that relates to your business.
Business Credit Cards vs Personal Credit Cards
Personal credit cards are designed for individuals who want to make purchases in their own name not as part of a business or organization. These types of cards can be useful if you plan on making regular purchases with a card that offer rewards or cashback (for example), but they’re less useful if you have an irregular income stream like freelancers do.
Using a personal credit card is also more complicated than using a business card because it will show up on all
Types of Business Credit Cards for Startups
The types of business credit cards available to startups are often very similar to those available to established businesses. The major difference is that startups may have a smaller budget for spending and thus need to seek out more affordable options.
The following are some types of business credit cards that startups should consider:
Standard corporate cards – These are typically issued by banks or other financial institutions and can be used as both business and personal cards by employees.
They usually offer rewards programs, bonus miles or cash back on purchases. Some standard corporate cards also feature partner programs with airlines or hotels, which allow users to earn additional rewards points when traveling for work purposes.
1. Cashback Rewards Business Credit Card
As your startup grows, you may need to accept credit card payments. Credit cards can be a great way to accept payment quickly and efficiently, but they also come with some risks.
Here are the three main types of business credit cards for startups:
Cashback rewards business credit card.
This type of card offers cash back on purchases, which is helpful if you’re using the card for business expenses. You’ll need to pay off the balance each month in order to avoid interest charges.
Business rewards points business credit card.
These cards offer points that can be redeemed for travel or other perks like gift cards or merchandise.
Some of them also allow you to transfer points into miles with frequent flyer programs like Delta Airlines SkyMiles or United Airlines MileagePlus. Business debit card (sometimes called a bank-issued debit card).
A business debit card is linked directly to your checking account so it can’t help you build up any credit history — but it can help you avoid overdraft fees by allowing you to keep track of your spending more easily than if you were paying with cash or checkbook transactions only.
2. Business Gas Credit Card
If you’re starting a new business, you probably have a lot on your mind. Getting a credit card and making sure it’s approved are not necessarily at the top of your list.
But if you don’t have a credit history, getting business credit can help establish it. A business credit card also allows you to build up your spending limit as your company grows.
There are many types of business credit cards available to startups, but a gas card is one of the simplest and most useful options for most businesses. Gas cards are relatively simple to apply for, and they give you access to funds immediately so that you can get started with your business right away.
What Is a Gas Card?
A gas card is exactly what it sounds like: a credit card that can be used at gas stations across the country (and world).
While many people think of these as being similar to debit cards, they actually work very differently — there’s no connection between the amount of money in your bank account and how much gas is left in your tank when using one.
Instead, they’re connected to an actual bank account that holds real money (as opposed to those pesky “dollars” on your debit card). In other words, when you run out of gas.
3. Business Travel Rewards Credit Cards
Starting a business is an exciting and challenging endeavor. As you grow and mature, you may find that your business credit card needs change.
Before you dive into the world of financial products and services, it’s important to understand the different types of business credit cards and their benefits. Business Travel Rewards Credit Cards If you’re running a startup on a shoe-string budget, travel rewards cards are probably not at top of your list.
However, if your company is growing fast, it’s worth taking a look at how these cards can benefit you. These cards offer generous sign-up bonuses and flexible reward options.
4. Business Low-Interest Rate Card
This type of business credit card offers low interest rates and higher credit limits. You can use it to make purchases for your business, whether you’re paying for office supplies, travel expenses or equipment.
The card also helps you build your business credit history, which will help you in the future when you apply for other types of business loans.
Business Rewards Credit Card
A rewards card lets you earn points or miles on every purchase you make with your card. These points can be redeemed for cash back or airline tickets, hotels stays and other perks.
Some cards offer extra perks like free airport lounge access or travel insurance coverage while abroad.
Business Cashback Card
Cashback cards are similar to rewards cards, but they don’t have any spending limit restrictions and they don’t require a high credit score (typically under 600).
With this kind of card, you’ll earn 1% or 2% cash back on all purchases made with the card. For example, if your monthly rent is $1,000 per month and you use a 2% cashback card instead of paying with another type of credit card that offers 0% interest rates on purchases (but requires a minimum payment).
5. Business No Annual Fee Card
Choosing the right business credit card can be a tricky process. There are so many options to choose from and each one has its own set of benefits and drawbacks.
We’ve rounded up the best business credit cards for startups so you can find the one that fits your needs.
Business No Annual Fee Card: If you’re just getting started and your company is still in its infancy, a no annual fee card might be the way to go. These cards are great if you don’t have much of a cash flow yet because you won’t have to worry about paying an annual fee.
The downside is that they often have fewer rewards or benefits than other types of business cards. However, if your business doesn’t generate much revenue yet, this shouldn’t be an issue anyway!
Business Rewards Card: If you want to rack up points towards travel or merchandise rewards, then a business rewards card might be right for you.
These cards typically offer higher rewards rates than other types of cards while still providing valuable benefits like travel accident insurance and purchase protection insurance coverage. You’ll also receive perks like extended warranties or rental car insurance coverage when using these cards outside of the United States (or even within it).
6. Shopping Rewards Credit Cards
One of the most popular types of business credit cards is the shopping rewards card. These cards offer cash back, points or miles for every dollar spent on a business’s purchases.
This can be a great way to incentivize employees to spend their money with your company instead of another vendor.
It also gives you an opportunity to take advantage of discounts and promotions that are only available through your card issuer.
Travel Rewards Credit Cards
A travel rewards credit card is another popular option for small businesses looking to save money on travel expenses.
These cards often offer free airfare and hotel stays when traveling for work or pleasure, but they can come with high annual fees and balance transfer fees if you’re not careful.
International Business Credit Cards
If you’re planning on doing business internationally, then it’s important that you have a credit card that can support international transactions.
Many travel rewards cards will allow foreign transactions without charging any additional fees, but there are some merchants who will charge a 3% fee on every transaction made in their local currency outside of the United States.
7. Prepaid Business Credit Card
If you’re just getting started in business, you may not have a lot of money to spare on expenses. A prepaid business credit card can be a useful tool for startups because it allows you to be reimbursed for your spending.
The card also lets you keep track of what you spend and make sure that you stay within budget. Business Credit Cards With Cash Back Rewards Programs Cash back rewards programs are popular with consumers but they’re also useful for businesses because they give companies an incentive to use their cards more often.
They can also help attract new customers who want to save money on their purchases by earning cash back on every purchase they make with their card.
8. Business Student Rewards Cards
If you’re looking for a business credit card for your startup, there are plenty of options available. Here are some of the most popular:
- Business Student Rewards Cards
- Business Student Rewards
Cards have been around for years.
They’re aimed at students and other young professionals with limited business experience. The good news is that these cards can be a good choice for startups too.
Many of them come with low interest rates and other perks that make them worth considering. Here are some of the best
Discover it® Business Credit Card.
This card comes with 0% introductory APR on purchases and balance transfers for 6 months (then 14.5%-23.99% variable). It also has no annual fee.
Cash Select for Business Credit Card.
This card offers 2% cash back on all purchases (1% when you buy and 1% when you pay), plus $600 in annual travel credits per account anniversary year (up to $100 per statement period) and no foreign transaction fees.
There’s also no annual fee or balance transfer fee, but there’s a 3% fee if you want to transfer an existing balance from another Capital One account or from another bank or financial institution (that includes cash advance checks).
The Need For A Business Credit Card For Startups
When you’re starting out, it’s tough to get your business off the ground. You don’t have much of a track record, and it can be hard to get people to trust you enough to give you their money or products.
That’s where business credit cards come in. They’re one of the best ways to establish credibility with potential customers, vendors and partners. A business credit card shows that you’re a responsible businessperson who pays their bills on time — which makes others want to do business with you.
The other advantage is that they can help improve your cash flow by allowing you to get paid faster than if you were using a personal credit card.
But there are also some downsides: Credit cards come with high interest rates that can make it harder for startups to turn a profit if they don’t manage their expenses tightly enough.
So it’s important for every entrepreneur to understand how business credit cards work before signing up for one — and know how to use them wisely so they don’t end up costing more than they should.
The difference between a business credit card and a consumer credit card
The main difference between business credit cards and consumer credit cards is that business credit cards are designed for small businesses, while consumer credit cards are designed for individuals.
There are two types of business credit cards: general purpose and travel. General purpose business credit cards give you the flexibility to use your card at any merchant that accepts Visa or MasterCard.
These cards can be used to make purchases anywhere, any time — even if you don’t have enough cash in your bank account. They also allow you to earn rewards on every purchase you make with your card.
Travel Business Credit Cards
Travel business credit cards are designed specifically for the business traveler who wants to be able to earn frequent flyer miles or hotel points when they spend money on their card. You can use these types of cards for everyday purchases like groceries and gas, but they typically offer more benefits when you use them at specific merchants like airlines and hotels.
The types of businesses that will benefit from a business credit card for startups
Startups are an integral part of the economy, and they have helped shape it in many ways. However, they require startup capital to get started.
Business credit cards can be used as a source of startup capital for startups and small businesses.
However, not all business credit cards are created equal, and you need to find the best one that suits your needs. There are different types of business credit cards available in the market today, and each has its own benefits and drawbacks.
Here are some of the options:
Small Business Credit Cards: These are designed specifically for small businesses with low-risk profiles. They typically offer lower limits, lower annual fees and fewer frills than their larger counterparts do.
If you want a simple card for everyday expenses but don’t want to pay an annual fee (or any other fees), then this is what you’re looking for!
Business Charge Cards: A charge card doesn’t allow you to carry a balance from month to month; you must pay off your balance in full each month or incur interest charges on whatever balance remains outstanding at the end of each billing cycle.
The Benefits Of Smart Spending Through The Best Business Credit Cards
When it comes to business credit cards, there are many benefits that can be gained from using them wisely.
The most important thing is that you should never use a card for personal expenses. This will only hurt your credit score and lead to a bad repayment history, which will affect future applications for loans and mortgages.
The following are some of the benefits that come with using the best business credit cards:
- More Rewards For You
Business credit cards tend to offer more rewards than personal ones do because they’re marketed to people who want to earn money through their spending (i.e., businesses). Some cards even offer cash back or points that can be redeemed for flights or hotel stays.
- Easy Application Processes
Many applicants find that applying for a business credit card is easier than applying for a personal one because they don’t have to go through a lengthy application process. All you need is some basic information about your company, such as its name and address, along with your personal details.
Once this has been verified by the issuing company, they’ll send you an approval letter within two weeks of receiving your application form.
Other considerations
There are a few other considerations when deciding which type of bike to buy. How much money do you have to spend?
Some models are more expensive than others and may require more maintenance. If you have a limited budget, then it’s best to opt for a cheaper model.
The good news is that most bicycles include a warranty on their parts so you can get them replaced if they break down in the first two years after purchase.
How much weight can your bike handle?
If you’re planning on carrying heavy loads, then it makes sense to get a heavier bike with thicker tires and stronger wheels that can support more weight. However, if you’re only going to be carrying yourself and maybe one other person around town, then there’s no need for such an expensive model.
How far do you plan on riding?
Longer rides will require more comfortable seats and better suspension systems to reduce vibrations from bumps along the road or trail. It’s also important to consider how many gears your bicycle has as well as its frame size if you plan on riding long distances often (such as commuting).
Business Credit Cards for Startups – FAQ
What are the benefits of a business credit card?
Business credit cards give you a way to manage your cash flow and help you grow your business. They help you to manage costs and track expenses, which can be especially important for startups that often don’t have a lot of cash on hand.
Business credit cards can also help you build your business credit history, which is essential if you want to take out loans or apply for other types of financing in the future. What are some of the best features of business credit cards?
Business credit cards offer many useful features and benefits:
Cash back rewards: some cards offer cash back rewards on purchases made through your card. This can be an attractive feature, especially if you do most of your shopping online or at stores with brick-and-mortar locations that accept MasterCard® and Visa® (the most common payment networks).
Cash back rewards usually come in the form of points that can be redeemed for cash or gift cards at certain retailers or restaurants. You could also use them to pay down your balance faster so you pay less interest over time.
No foreign transaction fees: some cards charge foreign transaction fees when used outside of the U.S., but others don’t. This is especially important if you plan to travel abroad
Can I use my EIN to apply for credit?
If you are a sole proprietor and plan to use your EIN for credit, you should be aware of the consequences. The IRS will not allow you to apply for credit using your EIN.
If you are a sole proprietor, it is best to keep your personal assets separate from your business assets. If you do decide to use your EIN as an individual taxpayer ID number (ITIN), the IRS recommends that you apply for a different tax ID number that is not related to the business.
You can still use your social security number (SSN) on your credit application if this is what is required by the lender. The IRS recommends that you keep good records of any credit accounts so that they can be reported on your tax return.
How do I establish credit for my LLC?
If you have a business, establishing credit for your LLC is important. You need to be able to get loans and credit cards in order to grow your business.
If you don’t have a personal credit score, then it will be hard for you to open accounts with banks and other financial institutions.
Fortunately, there are ways that you can establish credit for an LLC so that you can start getting access to funds.
Here’s how:
Apply for an EIN number
The first step is applying for an Employer Identification Number (EIN) from the IRS by completing Form SS-4.
This form is available online at the IRS website, or through any local IRS office or post office branch. Once you receive your EIN number, it should be listed on all of your financial documents as a way of identifying yourself as the owner of the business.
It’s also used so that other companies know where their payments should go if they’re paying their vendors through electronic funds transfer (EFT).
Open a business checking account
Now that you have an EIN number, you can open up a business checking account at any bank or credit union in your area.
Most banks will require some type of documentation proving that you own the company before they’ll open up an account.
Best Business Credit Cards Wrap Up
The best business credit cards for your business are those that offer perks and benefits that make your business more productive, efficient, and profitable.
You can use a credit card to pay for expenses in small increments, as opposed to setting up an automatic payment from your checking account.
This helps you track expenses more easily.
Plus, it’s easier to ensure that you have enough cash on hand to cover any unexpected expenses when you have a credit card with an electronic payment option.
Additionally, some businesses benefit from having the ability to earn rewards points and miles on their credit cards if they use them regularly for purchases and services.
Most major credit cards offer some sort of rewards program, so check with your organization’s human resources department to determine which ones are most appropriate for your needs.
