Best Credit Card For Small Business Startup : Selecting the best credit card for a small business startup is a crucial decision that can impact your financial stability and growth prospects. A well-chosen business credit card can provide you with valuable perks, rewards, and financial flexibility. In this guide, we’ll explore what to consider when choosing a credit card for your small business startup and provide recommendations for some of the top options available as of my last knowledge update in September 2021. Please note that credit card offerings may have changed since then, so be sure to research the latest options before making a decision.
- Best Credit Card For Small Business Startup
- What to Consider When Choosing a Business Credit Card
- Top Business Credit Cards for Startups
- Chase Ink Business Preferred Credit Card
- American Express Business Gold Card
- Capital One Spark Cash for Business
- Discover it Business Card
- Wells Fargo Business Platinum Credit Card
- CitiBusiness / AAdvantage Platinum Select Mastercard
- Blue Business Plus Credit Card from American Express
- Brex Corporate Card for Startups
- U.S. Bank Business Platinum Card
- Southwest Rapid Rewards Performance Business Credit Card
- Ink Business Cash Credit Card from Chase
- Hilton Honors American Express Business Card
- Final Thoughts
Best Credit Card For Small Business Startup
|Credit Card||Rewards||Sign-Up Bonus||Annual Fee||Perks and Features|
|Chase Ink Business Preferred Credit Card||Points on various business expenses||Generous sign-up bonus||Yes||Travel and purchase protections, cell phone insurance, rewards|
|American Express Business Gold Card||Membership Rewards points for various purchases||Substantial sign-up bonus||Yes||Travel benefits, purchase protection, Amex Offers|
|Capital One Spark Cash for Business||Cash back on all purchases||Cash bonus after reaching a threshold||Yes||Employee cards, expense tracking tools, unlimited cash back|
|Discover it Business Card||Cash back on all purchases, rotating categories||Cash back match in the first year||No||No annual fee, no foreign transaction fees, expense tracking|
|Wells Fargo Business Platinum Credit Card||Points on business expenses||Modest sign-up bonus||No||Access to Wells Fargo business services, expense tracking|
|CitiBusiness / AAdvantage Platinum Select Mastercard||AAdvantage miles on business purchases||Substantial bonus in AAdvantage miles||Yes||Travel benefits, preferred boarding on American Airlines flights|
|Blue Business Plus Credit Card from American Express||Membership Rewards points on all purchases||No traditional sign-up bonus||No||Expense management tools, access to Amex Offers|
|Brex Corporate Card for Startups||Tailored rewards for startup expenses||Unique features for startups||No personal guarantee||Expense management, discounts on business tools and services|
|U.S. Bank Business Platinum Card||Simple card with low APR||No traditional sign-up bonus||Usually no annual fee||Simplicity, low-interest rate, suitable for day-to-day expenses|
|Southwest Rapid Rewards Performance Business Credit Card||Rapid Rewards points on business purchases||Generous sign-up bonus||Yes||Travel perks, enhanced boarding options, in-flight credits|
|Ink Business Cash Credit Card from Chase||Cash back on business expenses||Cash bonus after reaching a threshold||No||Employee cards, expense tracking tools, no annual fee|
|Hilton Honors American Express Business Card||Hilton Honors points on business purchases||Substantial sign-up bonus||Yes||Travel benefits, complimentary Hilton Honors Gold status|
What to Consider When Choosing a Business Credit Card
- Credit Score: Your personal credit score can influence your eligibility for business credit cards. If your startup is brand new and you don’t have a business credit history, card issuers may consider your personal credit score when deciding whether to approve your application.
- Business Structure: The legal structure of your business (e.g., sole proprietorship, LLC, corporation) can affect your liability and how your business credit card is linked to your personal finances.
- Spending Habits: Analyze your business spending patterns. Do you primarily spend on travel, office supplies, or something else? Choose a card that rewards you for your most common expenses.
- Interest Rates: Consider the annual percentage rate (APR) on the card. While it’s advisable to pay your balance in full each month to avoid interest charges, a lower APR can be helpful in case you need to carry a balance at some point.
- Annual Fees: Many business credit cards come with annual fees, so weigh the cost against the benefits and rewards offered. Some cards may waive the annual fee for the first year.
- Rewards and Perks: Look for cards that offer rewards tailored to your business needs. Common rewards include cash back, travel miles, points, and bonus offers. Also, consider perks like purchase protection, extended warranties, and travel insurance.
- Credit Limit: The credit limit on your card can impact your ability to make large purchases or cover unexpected expenses. Make sure the card you choose provides a suitable credit limit for your business needs.
- Introductory Offers: Many business credit cards offer introductory bonuses, such as cash back or bonus points, for reaching a spending threshold within the first few months of card ownership.
- Expense Tracking: Some business credit cards offer tools for tracking and categorizing expenses, making it easier to manage your finances and prepare for tax season.
- Credit Card Issuer: Consider the reputation and customer service of the credit card issuer. Reliable customer support can be invaluable if you encounter any issues with your card.
Top Business Credit Cards for Startups
Chase Ink Business Preferred Credit Card
Rewards: The Chase Ink Business Preferred Credit Card is known for its robust rewards program. It offers a substantial sign-up bonus after you spend a certain amount within the first few months. You’ll earn valuable Ultimate Rewards points on various business expenses, including travel, advertising, and office supplies.
Annual Fee: There is an annual fee associated with this card, but the rewards and benefits often outweigh this cost.
Perks: Cardholders benefit from travel and purchase protections, cell phone insurance, and the flexibility to transfer points to various airline and hotel loyalty programs, making it an excellent choice for businesses with diverse expenses and travel needs.
American Express Business Gold Card
Rewards: The American Express Business Gold Card provides Membership Rewards points for various business purchases. What sets it apart is the ability to choose bonus categories, allowing you to earn extra points in areas where your business spends the most.
Annual Fee: Like many premium cards, there is an annual fee associated with this card, but it can be offset by the rewards and benefits it offers.
Perks: Cardholders enjoy travel benefits, purchase protection, and access to Amex Offers, which can provide valuable discounts on various business expenses. This card is particularly suitable for businesses looking for flexibility in their rewards program.
Capital One Spark Cash for Business
Rewards: The Capital One Spark Cash for Business card is straightforward in its rewards structure, offering cash back on all purchases. There are no category restrictions, making it an excellent choice for businesses with diverse spending patterns.
Annual Fee: This card comes with an annual fee, but the unlimited cash back potential can make it a worthwhile investment.
Perks: Cardholders benefit from employee cards at no additional cost, expense tracking tools, and straightforward cash back rewards, making it a convenient choice for small businesses.
Discover it Business Card
Rewards: The Discover it Business Card is known for its cash back rewards. It offers cash back on all purchases, with bonus categories that rotate quarterly. The unique feature is that Discover matches the cash back you earn in your first year.
Annual Fee: Unlike many other business credit cards, this one has no annual fee.
Perks: There are no foreign transaction fees, which can be advantageous for businesses with international expenses. It also provides expense tracking tools and free employee cards.
Wells Fargo Business Platinum Credit Card
Rewards: The Wells Fargo Business Platinum Credit Card offers rewards in the form of points earned on business expenses, which can be redeemed for cash back, travel, or gift cards.
Annual Fee: This card does not have an annual fee, which can be appealing for businesses looking to minimize costs.
Perks: Cardholders gain access to Wells Fargo’s suite of business services and expense tracking tools, which can assist in managing business finances effectively.
CitiBusiness / AAdvantage Platinum Select Mastercard
Rewards: The CitiBusiness / AAdvantage Platinum Select Mastercard is tailored for businesses with significant travel needs. It earns American Airlines AAdvantage miles on business purchases, making it ideal for those who frequently fly with American Airlines.
Sign-Up Bonus: This card typically offers a substantial sign-up bonus in the form of AAdvantage miles.
Annual Fee: Like many travel-focused credit cards, it comes with an annual fee.
Perks: Cardholders enjoy travel benefits, including preferred boarding on American Airlines flights, making it a valuable choice for businesses with a preference for this airline.
Blue Business Plus Credit Card from American Express
Rewards: The Blue Business Plus Credit Card from American Express is known for its simplicity and flexibility. It earns Membership Rewards points on all purchases, providing versatility in redeeming rewards.
Annual Fee: One notable feature is its lack of an annual fee, making it an attractive option for businesses looking to minimize costs.
Perks: The card offers expense management tools and access to Amex Offers, allowing businesses to save on various expenses.
Brex Corporate Card for Startups
Features: The Brex Corporate Card for Startups is designed with startups in mind. One standout feature is that it doesn’t require a personal guarantee, providing a unique advantage for founders concerned about personal liability.
Rewards: It offers tailored rewards for startup-related expenses, such as co-working spaces and software subscriptions.
Perks: The card includes expense management features and benefits like discounts on business tools and services.
U.S. Bank Business Platinum Card
Features: The U.S. Bank Business Platinum Card is known for its simplicity and low APR. It’s suitable for businesses looking for a straightforward credit card without elaborate rewards programs.
Annual Fee: Often, this card comes with no annual fee, which can be an attractive feature for cost-conscious businesses.
Perks: While it may not have extensive rewards, it can be a reliable card for managing day-to-day expenses with a low-interest rate.
Southwest Rapid Rewards Performance Business Credit Card
Rewards: The Southwest Rapid Rewards Performance Business Credit Card is tailored for businesses that frequently travel with Southwest Airlines. It earns Rapid Rewards points on business purchases.
Sign-Up Bonus: This card typically offers a generous sign-up bonus in the form of Rapid Rewards points.
Annual Fee: It comes with an annual fee, but the rewards and travel benefits can outweigh this cost for frequent Southwest flyers.
Perks: Cardholders enjoy various travel perks, including enhanced boarding options and in-flight credits.
Ink Business Cash Credit Card from Chase
Rewards: The Ink Business Cash Credit Card from Chase is designed for businesses looking for cash back rewards. It offers cash back on various business expenses, with bonus categories that can include office supplies, internet, cable, and phone services.
Sign-Up Bonus: This card often provides a cash bonus after reaching a spending threshold within the first few months, giving businesses an immediate boost.
Annual Fee: Importantly, this card typically comes with no annual fee, making it an attractive option for businesses focused on cost-effectiveness.
Perks: Additional perks include employee cards at no extra cost, and the card provides useful tools for tracking and managing expenses.
Hilton Honors American Express Business Card
Rewards: The Hilton Honors American Express Business Card is tailored for businesses that frequently stay at Hilton hotels. It earns Hilton Honors points on business purchases, including bonus points for Hilton-related expenses.
Sign-Up Bonus: This card usually offers a substantial sign-up bonus in the form of Hilton Honors points after reaching a spending threshold in the initial months.
Annual Fee: Like many premium hotel cards, this one comes with an annual fee, but the potential rewards and benefits can offset this cost for businesses with significant Hilton stays.
Perks: Cardholders enjoy travel benefits such as complimentary Hilton Honors Gold status, which includes room upgrades, bonus points on stays, and other perks. It’s an excellent choice for businesses with a preference for Hilton properties.
Choosing the best credit card for your small business startup requires careful consideration of your specific needs and financial situation. While the above recommendations can be a good starting point, it’s essential to read the terms and conditions of each card, compare their features, and consider how they align with your business goals.
Additionally, remember that responsible credit card use is essential for building and maintaining a healthy credit profile. Paying your bills on time and in full, monitoring your spending, and avoiding carrying a high balance can help you make the most of your business credit card while avoiding unnecessary debt. If you’re uncertain about which card is right for you, consider consulting with a financial advisor or business consultant for personalized guidance.