Opening up a new small business can be an exciting yet daunting task. One of the most important things you’ll need to consider is how you plan on financing and managing the financial side of your business. A small business credit card can be an invaluable tool to help separately manage business and personal expenses, earn rewards, get access to financing, and more. In this comprehensive guide, we’ll discuss the benefits of small business credit cards, what to look for when applying, and review the 10 best small business credit cards of 2024.
Benefits of Small Business Credit Cards
There are many advantages to using a dedicated small business credit card compared to relying solely on personal credit cards or other payment methods. Here are some of the top benefits:
Separate Business and Personal Expenses
One of the biggest advantages of a small business credit card is the ability to separate personal and business expenses. Using separate cards and accounts makes it much easier to track expenses, organize finances, and take advantage of tax deductions for business expenses.
Build Business Credit History
Having a small business credit card can help establish and build your business’s credit history independently from your personal credit. This is important for gaining access to financing options like small business loans or lines of credit down the road.
Also Read: Discover Business Credit Card: A Smart Option for Your Business
Earn Rewards
Many small business credit cards come with robust rewards programs that allow you to earn cash back, points, or miles on every business purchase you make. This can really add up over time and help reduce business expenses.
Access to Financing
In addition to helping build business credit, some cards provide access to financing options like 0% intro APR periods, balance transfer offers, or cards that can be used like credit lines to get quick access to funds.
Streamlined Record Keeping
Expenses made on a small business card are much easier to track for deduction purposes at tax time. Many cards come with advanced analytics, reporting, and accounting integrations as well.
What to Look for in a Small Business Card?
With so many options on the market, it can be tough to decide which small business credit card is right for your needs. Here are some of the key factors to consider when comparing cards:
Rewards
One of the first things to look at is what type of rewards the card offers. Does it earn cash back, points, or airline miles? What categories earn the highest rates? Are there bonus opportunities to earn more rewards?
Interest Rates
Take a close look at interest rates and fees. This includes the regular purchase and balance transfer APR as well as penalty rates. Ideally, you want to pay your balance off each month to avoid interest fees.
Perks
Cards often come with additional perks like purchase protection, extended warranties, travel insurance, discounted software, and more. See what value-added benefits are included.
Acceptance
You want a card that is widely accepted so you can use it for all business expenses. Visa and MasterCard have the most extensive merchant acceptance.
Credit Requirements
Pay attention to credit requirements for approval as well as credit limits. You want to ensure you qualify and get a high enough limit to meet spending needs.
Security Features
Look for cards that offer EMV chip technology, zero fraud liability policies, encrypted networks, and other security protections to safeguard your data.
Also Read: Discover Business Credit Card: A Smart Option for Your Business
10 Best Small Business Credit Cards of 2024
Based on the criteria above, here are 10 of the best small business credit cards available today:
1. Chase Ink Business Preferred
The Ink Business Preferred from Chase is a powerhouse card offering outstanding rewards and benefits. You’ll earn 3x points on the first $150,000 spent each year in categories including shipping, internet/cable, travel, and advertising with social media and search engines. Points can be redeemed for cash back, travel, gift cards, and more. Other benefits include cell phone protection, trip cancellation/interruption insurance, and no foreign transaction fees. There is a $95 annual fee.
2. American Express Blue Business Plus
This card from American Express offers 2x points on all purchases up to $50,000 per year with no annual fee. New cardholders can earn 15,000 bonus points after spending $3,000 in the first 3 months. Points can be transferred to airline and hotel partners or redeemed for statement credits, merchandise, and more.
3. Capital One Spark Cash for Business
Earn unlimited 2% cash back on all purchases with the flat-rate Spark Cash card. New accounts get a $500 cash bonus once $4,500 is spent in the first 3 months. There are no annual fees or foreign transaction fees. Account management is easy with the Capital One mobile app.
4. Wells Fargo Business Platinum
Wells Fargo offers new cardholders with this card an impressive 0% intro APR for 18 months on purchases and qualifying balance transfers (then 13.99% – 21.99% variable APR). You also have the opportunity to earn up to $600 in cell phone protection. There is no annual fee for this card.
5. Ink Business Unlimited
This no-annual-fee card from Chase earns 1.5x points on every purchase. There is also a $750 bonus after spending $7,500 in 3 months. Points can be redeemed for cash back, travel, gift cards, and more. It includes features like cell phone protection, no foreign transaction fees, and access to Chase benefits.
6. Bank of America Business Advantage
There is no annual fee for this card that earns unlimited 1.5% cash back on all purchases. New accounts receive a $300 statement credit after $3,000 is spent in the first 90 days. Receive a credit score for free each month on your statement.
7. Capital One Spark Miles for Business
This Capital One card offers 2x miles on all purchases with no limits or annual fee. New cardholders can earn 50,000 bonus miles after spending $4,500 in the first 3 months. Miles can be redeemed for any travel purchase or transferred to airline loyalty programs.
8. TD Bank Business Solutions
New cardholders receive $200 cash back after making $1,000 in purchases in the first 60 days. Earn 1% cash back on all purchases. Visa SavingsEdge gives you up to 10% off eligible business purchases. There are no annual fees.
9. Discover It Business Card
This cashback business card from Discover offers 5% back on everyday business purchases at different places each quarter like gas stations, restaurants, office supply stores, internet/cable/phone, etc (must activate each quarter). All other purchases get 1% back. New accounts get $500 cashback awarded after the first $5,000 spent in 12 months.
10. Deserve Pro Mastercard
This is an innovative card using analytics and machine learning to extend credit based on schooling and earning potential rather than credit scores. It has no fees and offers 1% cash back with a 12-month 0% APR period. Suitable for newer businesses and startups.
Also Read: Startup Business Credit Cards with No Credit – A Complete Guide for 2024
Applying for a Small Business Credit Card
Ready to apply for one of these great small business credit cards? Here are some tips for applying:
- Make sure your business is eligible – some cards require being in business for at least a year.
- Know what documentation you’ll need to provide like tax ID numbers, business licenses, and financial statements.
- Check your personal credit score so you know where you stand before applying.
- Compare your options: cards, rewards, rates, and fees.
- Consider getting a card that reports to the business credit bureaus to build a business credit history.
- Apply for the card that best matches your needs and business qualifications.
Using Your Card Responsibly
Once approved, be sure to practice safe and responsible credit card usage. Some tips:
- Use it only for business purchases, not personal expenses.
- Pay your balance in full each month to avoid interest fees.
- Set payment reminders and check statements regularly.
- Notify your provider of travel plans to prevent declines.
- Keep your card secure and passwords private.
- Contact the issuer if your card is lost or stolen.
- Stay under 30% of the credit limit to avoid impacting your credit score.
- – Review statements for fraudulent charges and report any suspicious activity.
Maximize the Value of Your Card
Follow these strategies to get the most value from your chosen small business credit card:
- Use it for all regular business expenses to earn the most rewards.
- Pay attention to bonus reward offers and take advantage of these.
- Use your points/miles strategically like for travel expenses.
- Check if your card offers discounted gift cards to places you shop frequently.
- Leverage 0% intro APR offers by transferring high-interest balances from other cards.
- Be sure to use any cardholder discounts, perks, or benefits.
- Use the card’s online portals to earn bonus rewards at retailers.
- Dedicate a card to recurring expenses to easily track expenses.
- Use in combination with accounting software to simplify bookkeeping.
Also Read: The Importance of Business Lines of Credit for Small Businesses
Conclusion
Finding the right small business credit card is an important decision for any entrepreneur or small business owner. With so many options on the market, it pays to do your research and compare the top contenders based on your business’s specific needs and qualifications before applying. The credit cards discussed in this guide offer outstanding rewards opportunities, valuable benefits, and flexibility in managing business expenses. Any of these top picks can provide the convenience and tools needed to simplify spending, earn perks, separate personal and business finances, and help your startup or small business grow. When used responsibly, a dedicated small business credit card can generate rewards, improve cash flow, build credit history, and organize your finances more seamlessly than relying on personal credit cards or other payment methods alone. Be sure to use your new card strategically to maximize value. Take advantage of bonus categories, intro 0% APR offers, discounts, and more to get the most from your small business credit card. Maintain good spending habits by paying balances off in full each month and staying under 30% of the limit. For even more simplified business financing solutions, look to a payment processing provider like 5 Star Processing. They offer optimized solutions for accepting payments and managing cash flow tailored to startups and small businesses. Their secure, low-cost payment processing integrates seamlessly with most small business credit cards. Sign up with 5 Star Processing to start experiencing the benefits of streamlined payments and financing today.
