Best credit cards for small businesses

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When you're about to start your own startup, it's easy to believe that you do not need a business credit card. However, buying a credit card for business purchases has serious benefits, not just rewards.

Advantages of a small business credit card for startups

Keep personal and professional expenses separate

With a professional credit card, you can separate your personal and business purchases. This can help you track more closely your company's purchases, but it can also simplify your finances and track your expenses based on tax time.

Build the credit history of your startup

Getting a credit card for your business can also help you establish your credit score, a score that can affect your ability to borrow more money for your business in the future.

Manage cash flow

As if these benefits were not enough, buying a business credit card can help you manage your cash flow more easily. You can pay suppliers with your credit card and wait to pay your bill before your grace period expires without interest. For some businesses with turbulent cash flows, credit cards can provide short-term financing. If you have to cover the expenses for a few months, perhaps waiting for the customer's payment, you can use your business credit card for a short time. Unless you are in a 0% APR launch period, your interest rate will be high, so it's best to keep the amount on your balance as low as possible and pay it back as soon as you can.

Spread the cost of a big purchase

Business credit cards with a 0% APR on purchases for a certain period of time can be a great way to finance a big purchase and repay it over time in installments. If you need to invest in equipment to grow your business, you should consider a 0% APR card to help spread the financial burden.

Earn cash back or travel rewards on your expenses

Finally, you can earn travel rewards or cash back on all your business purchases. These rewards can accumulate over time. Some business credit cards offer high discount rates in categories in which your business can spend a lot, such as office supplies and meals. Many business travel credit cards include benefits such as lounge access, which can help you maximize the productivity of your travel time.

Small business credit cards that every startup should consider

Whatever the reason you get a business credit card, it's important to compare offers to see how they rank. The following small business cards offer the right combination of benefits:

Ideal for Reward Travel: Chase Ink Business PreferredSM Card

The Ink Business Preferred Card is one of the best options for startups who wish to earn rewards for their trips for every dollar spent. This card offers 80,000 bonus points when you spend $ 5,000 within three months of opening the account, plus 3 points for $ 150,000 spent on travel, shipping, selected online advertising , cable, internet and phone. Cardholders also earn 2 points per dollar on all other purchases.

What makes this card ideal for travel is that you use points to book travel on the Chase Travel Portal or to transfer 1: 1 to popular airline and hotel partners such as Southwest Airlines, United MileagePlus and JetBlue. An annual fee of $ 95 applies.

If you would like to know more about this card, read our article on reviewing the Ink Business Preferred card.

Ideal for repayment: Capital One® Spark® Cash for Business

Business owners who want immediate cash back on their purchases should consider the Capital One® Spark® Cash One Business Program. This card distributes 50,000 points after spending $ 4,500 within three months of opening the account, plus 2% off all purchases.

This card has an annual fee of $ 95, but is canceled the first year. When you are ready to redeem your points, you can redeem them for a point-by-point statement.

If you want to know more about this card, read our article Capital One Business Spark® Capital One®.

Best 0% APR Offer: SimplyCash® Plus Business Credit Card from American Express

If you need working capital to start your business, it can be helpful to look for a business card that offers 0% on purchases for a limited period. The American Express SimplyCash® Plus Business Credit Card offers the best deal available; once you register, you will have 15 months with a TAP / 0% on purchases made with the card.

Better yet, this card offers rewards with no annual fee. Once approved, you will earn 5% on the first $ 50,000 spent on wireless phone services and office supply stores in the United States. You will also earn 3% on purchases made in one of the eight categories of your choice, plus 1% on all other purchases. The bonus categories you can choose to earn from 3% include airfares purchased from airlines, hotel rooms purchased from hotels, directly booked car rentals, US petrol stations. , American restaurants, advertising with some US media, US mail and some US computer software, hardware or cloud computing.

Ideal for Airline Miles: CitiBusiness® AAdvantage® Platinum Select® World Mastercard

We love the CitiBusiness® AAdvantage® Platinum Select® World Mastercard for its significant sign-up bonus and value proposition for small business owners. After approval of this card, you can earn 70,000 miles after spending $ 4,000 on purchases within four months of opening the account. You'll also earn double miles on American Airlines purchases, telecom merchants, cable and satellite purchases, car rentals and eligible gas stations, as well as 1 mile per dollar for everything you buy. .

Finally, you get a free checked baggage and 25% discount on the Internet service in flight when you use a US plane and you use your card. The CitiBusiness® AAdvantage® Platinum®® World MasterCard is delivered without transaction fees abroad and with no annual fee of $ 99, canceled for the first 12 months.

If you want to know more about this card, read our review of the CitiBusiness® AAdvantage® Platinum Select® Global Mastercard.

What to watch

While these cards can help you earn rewards and simplify the finances of your business, it's important to keep in mind the pitfalls of business credit cards. For starters, credit cards tend to have high interest rates, which makes keeping an expensive balance. If you have to borrow money and repay it over several months, you may want to take out a commercial loan.

Also note that if you signed a personal guarantee when you applied for your business credit card, you will be responsible for the debts of your business, whether your business succeeds or not. If you're worried about not being able to pay off your balances or those of your business, you may want to reconsider your business plans or stick to cash to reduce your risk.

When they are used responsibly, business credit cards can be a great tool to establish your company's credit history, separate your personal and professional expenses, help cover the times when your credit card flows. Cash are limited and generate excellent cash returns and travel rewards.

Publication: All journals are prepared by Bankrate.com staff. The opinions expressed herein are solely those of the reviewer and have not been reviewed or endorsed by any advertiser. The information, including card rates and fees, presented in the journal are accurate as of the date of the review. See the data at the top of this page and the bank's website for the latest information.