Your credit card is an important source for day-to-day spending and even possibly seed money. In 2008, 2 out of 5 small businesses used credit cards to finance capital, according to a report by the National Small Business Administration. Credit cards can also help you track spending while building credit and earning rewards along the way. However, proceed with caution, as interest rates can be sky-high and small business credit cards do not offer the same consumer protection as personal cards. Nearly 42% of small business owners carry a credit card balance, reports the Wall Street Journal. To help you choose the right card for your enterprise, here is a guide to the some of the best small business credit cards available:
Perfect Plastic: The Best Small Business Credit Cards
SimplyCash Business Card American Express
This business card gives some of the most practical rewards for small business owners. While free yacht trips may sound nice, the SimplyCash AmEx business credit card helps you buy things you really need. You get 5% cash back on wireless services and office supplies, plus another 3% cash back on gasoline (for the first $12,000, after which you receive 1% cash back). As gas prices keep climbing, every dollar helps. For everything else, you get 1% cash back on all of your purchases. Get automatic discounts when using this business credit card at partner retailers such as FedEx and Hertz. Be aware that not all vendors accept American Express, so you may limit yourself if this is your sole business credit card. Also note that the APR for this card varies depending on your credit score. You can earn 0% APR up to the first 12 months, after which the APR varies from 12.24% to 19.24%. American Express offers a wide range of business credit cards, but this one stood out for charging no annual fee. Another classic card to consider is the American Express Business Platinum, which will cost you an annual fee.
Annual fee: None
Introductory APR: 0% for 6 to 12 months
Chase InkCash Business
This business credit card from Chase offers you a $250 cash bonus after charging your first $5000 within 3 months. You get 5% cash back on office supplies, phone and cable services, plus another 2% cash back on gas and dining. Cash back at restaurants means you can wine and dine clients at a discount. While the American Express SimplyCash card offers 3% cash back on gas, the rewards drop after your you have spent $12,000 annually. With Chase InkCash, you receive favorable cash back rates for up to $25,000 worth of purchases each year. Chase also offers free employee credit cards with set spending limits, which allows you to monitor employee spending.
Annual fee: None
Introductory APR: 0% for up to 6 months
CapitalOne Spark Cash Business
CapitalOne’s business credit card gives you 2% cash back on any purchase. This rate can save you a lot of money, depending on your business spending. If most of your budget goes toward gas, dining, telecommunications or office supplies, you may want to check out the Chase or Amercan Express business credit cards, which give up to 5% cash back on those services. The CapitalOne business credit card offers competitive signing rewards, including a $100 bonus for the first $1000 you spend within 3 months. You can also sign up for free employee cards and receive a $50 bonus for doing so. If you prefer similar benefits geared toward travel, check out the CapitalOne Spark Miles business credit card.
Annual fee: $59 after the free first year
Introductory APR: 13.9% variable
Bank of America Platinum Plus for Business
While this Bank of America MasterCard is low in rewards, it’s also low in interest rates. After the 0% introductory APR for the first 6 months, your APR can be as low as 9.24%. Bank of America has gone out of its way to make accounting easy, sending you monthly categorized statements that you can upload right into Quickbooks. You can link this card to your business checking account, saving you from dreaded overdraft fees. The card protects you even further, providing 24/7 emergency cash and credit card replacement and 90-day purchase security against loss, theft or damage. Similar benefits can be found from most business credit cards, but if you care most about low financing fees, this may be the card for you.
Annual fee: None
Introductory APR: 0% for the first six billing cycles