Small business is the heartbeat of America. Starting a business requires financial security to get started. Realist, many entrepreneurs don’t have start-up money in the beginning stage. Small businesses often require a substantial line of credit early on to survive the start-up stage. In a perfect world, everyone would have the cash to fund their start-up but it’s not always that easy. These days, finding a bank that can lend to small businesses is extremely difficult, so one of the alternatives is to fund a business is by selecting a small business credit card.
Listed below are some of the best small business credit cards you can find online today. Along with each card, the list includes a summary of the advantages of its use for a small business, whether you are trying to build business credit or increase your line of credit and grow.
The Writers choice
1. Ink Cash® Business Credit Card. My pick for the best small business credit card is the Ink Cash Business Card from Chase. New cardholders can earn $200 bonus cash back after spending $3,000 on purchases within the first three months of account opening. Cardholders earn 5% cash back on the first $25,000 spent annually on office supply store purchases, cellular or landline phone service, internet and cable TV services.* And can earn 2% cash back at gas stations and restaurants on the first $25,000 spent annually and 1% cash back on all other Ink Cash Business Card purchases.
In addition to the great cash back offer, the card comes with other perks. The Ink Cash Business Credit Card has a 0% introductory APR on balance transfers and purchases for six months. Owning the Ink Cash card costs nothing, as the card carries no annual fee. Finally, adding additional cardholders is a snap because again, Chase charges no fee. In terms of rewards, introductory offer and overall quality, the Ink Cash Business Credit Card is an all-around solid offer.
2, Ink Bold® Business Charge Card. The only charge card to make this list of best small business cards, the Ink Bold Business Charge Card is the card for the ultimate business owner. New cardholders can earn 50,000 bonus points after spending $5,000 in the first three months from account opening. That’s $625 toward travel when you redeem through Chase Ultimate Rewards. You’ll earn up to five points per dollar for purchases on the first $50,000 spent annually at office supply stores, and on cellular phone, landline, internet, and cable TV services. This offer has an introductory annual fee of $0 for the first year and then the annual fee is $95.
3, SimplyCash® Business Credit Card from American Express. The SimplyCash Business Credit Card from American Express is a fantastic small business credit card. This card opens by offering a 0% introductory APR on purchases for 6, 9, or 12 months depending on the applicants credit history and in terms of cash back, this offer is one of the best. Here are the cash back categories – cardholders can receive 5% cash back on services from U.S. office supply stores and on wireless telephone services purchased directly from U.S. service providers, 3% cash back on gasoline at U.S. gas stations and 1% cash back on other purchases. For purchases above $12,000 in each 5% and 3% category per reward year cardholders will earn 1% cash back. Cash back is earned only on eligible purchases and automatically credited to your statement.There is no annual membership fee to own the SimplyCash Business Credit Card from American Express. Terms and limitations apply.
3.TrueEarnings® Business Card from Costco and American Express. A rival to the Ink Cash card, the TrueEarnings Business Card from Costco and American Express has a tiered cash back system worthy of ranking at the top. Cash back rates of 4% for gasoline purchases at U.S. stand-alone gas stations, including at Costco, for purchases up to $7,000 per year (1% thereafter), 2% on on eligible travel purchases, 2% at U.S. restaurants and 1% on other purchases offer cardholders the opportunity to grow their business and earn a little back. Cash back is earned only on eligible purchases. You will receive your cash back in the form of an annual reward coupon on your billing statement, which you redeem in person prior to its expiration date for merchandise or cash at any U.S. Costco Warehouse. If you use this card to pay your Costco membership each year, there is no annual fee. This card comes with a 0% introductory APR offer on purchases for the first six months. After that, your APR will be a variable rate, currently 15.24%. Terms & Restrictions Apply.
1. Ink Plus Business Card from Chase: If you spend $5,000 in the first three months of signing up for the Ink Plus Business Card, you will receive 50,000 bonus points. Also, for every dollar you spend on office supplies and telecommunications services, you can earn another five points, up to $50,000 per year. For every dollar you spend on gas and hotel accommodations, you can earn two points, up to $50,000 per year. The annual fee on this card is $95 after the first year. Of course, as with all credit cards, it’s a good idea to pay off the balance on a monthly basis to avoid being charged interest. Because the CARD Act protections do not extend to business credit-cards, your interest rates can be changed at any time on credit cards specifically designated for businesses.
2. Hotel Club Carlson Business Rewards Credit Card from Visa: This card is especially good for entrepreneurs who spend a lot of time living out of a suitcase and like Radisson hotels. The card offers 50,000 bonus points after your first purchase and 35,000 additional points if you spend more than $2,500 in the first three months of signing up. Those 85,000 points can be exchanged for as many as 18 free nights in Club Carlson hotels. If you book more than two consecutive nights at a hotel with the Club Carlson, the last night is free. While Club Carlson may not be a familiar brand for you, it is the parent company of chains including the Radisson, Park Plaza and Country Inn. There is a $75 annual fee.
3. Capital One Spark Cash for Businesses: This credit-card gives you two percent cash back on any purchase, and while that is slightly less than you can get back for specific categories of purchases on other cards, that this card offers some cash back on all purchases makes it especially convenient, the report says. Also, if you spend $1000 in the first three months, you will get $100 as a bonus. If you authorize an employee to use your card, you get another $50 bonus. The annual fee is $59 after the first year.
1. Citi Diamond Preferred: Approximately one-third of small-business owners use credit-cards for financing, according to the most recent National Small Business Association access to capital report. If you are looking to finance a larger purchase on a credit card, having an extended period of time where you don’t accrue interest is key. This credit card from Citi offers zero percent interest rate for 18 months, the longest in the industry. The Citi Diamond is a consumer credit-card. Not only are consumer-credit cards protected under the CARD Act, but also they tend to have longer periods with zero interest.
2. Bank of America Cash Rewards for Business MasterCard: Bank of America is the only large, primary card issuer to have voluntarily applied the CARD Act protections to its small-business offerings. This credit-card offers no interest payments on new purchases for nine months. Also, you can get three percent cash back at gas stations and office supply stores, two percent at restaurants and one percent for all other purchases.
Lower the cost of debt:
1. No Balance Transfer Fee Slate Card from Chase: About half of small-business owners carry credit-card debt from month to month. If you are one of them, the Slate Card from Chase is your best option because there are no fees for transferring the balance, this “amazed” option is available anywhere because it is not a profitable offering for card issuers. Also, once you transfer your debt to the Slate Card, there are no finance charges for 15 months. There is no annual fee.
1. Capital One Spark Classic for Business: Building a good credit history takes time. The only way a specific credit card will help is by having no annual fee, allowing you to use all your cash to pay off debt. Also, the Capital One Spark credit-card gives one percent cash back.
2. Harley-Davidson Secured Credit Card: If you don’t have credit, or have bad credit, the Harley-Davidson Secured Card is a way to build credit. You have to make a security deposit to open the credit card and you can spend only as much as you have deposited. You can add more cash to your deposit to increase your credit limit. A bonus to this card is that it waives the annual fee for the first year.
Sonya Young can be reached at email@example.com.