It is reasonable to wonder why there is a need to get credit cards for your small business. Well, It is not only necessary but extremely vital – especially during the early stages of the business. Essentially, a credit card, or several, is the asset you need to streamline daily expenses while acquiring numerous benefits, including purchase protection and beneficial rewards.
Benefits of Credit Cards to Small Businesses
In a nutshell, here are the primary benefits of credit cards to a small business
Simplified Cash flow and finance purchases
Most startup businesses do not have the luxury of making purchases via cash. Therefore, the ‘spend money to earn money ‘ idea may be limited to some. A credit card comes in handy in the line of cash flow by facilitating purchases for stock or equipment, thus empowering businesses to deliver service or any other orders.
Access to account management tools
The primary benefit of using business credit cards compared to cash is that every cent is usually accounted for. Most companies offer periodical summaries and access accounting programs like Quickbooks, which help them follow their transactions and track their spending.
Streamlined employee expenses
A business credit card is also a smart way to centralize the company expenses and limit them to a single bill. Additionally, it saves business owners the hassle of reimbursing employees whenever they spend on their personal bills and allows them to regulate employee spending.
Redeemable rewards
Typically, purchases made on credit cards earn rewards, redeemable in various ways. Therefore, business owners can compare reward programs while shopping for a business credit card and go for the most sensible ones.
Travel and purchase protections
Business credit cards, like personal cards, also offer exciting travel and purchase protections such as cell phone protection, zero foreign transaction fees, auto rental damage collision waivers, Trip cancellation, interruption insurance, etc. Also, depending on the nature of your business, some credit cards may offer better deals than others.
The 7 Best Credit Cards For Small Businesses
A good business card offers higher spending limits, several rewards, an insurance benefit, and perhaps some cash back. Now that you understand the importance of having a credit card for your small business, here is a round-up of some of the best options for various situations.
Capital One Spark Miles is an excellent choice for business owners chasing after generous cashback as it has a welcome offer of up to a $1000 cashback bonus. The bonus is broken down into two- $500 on the first $5000 spent within the first three months and the other half upon spending at least $ 50,000 within the first six months.
The card also has something for frequent travelers, whereby users get rewards in miles rather than cash or points. A Capital One Spark Miles Card earns you 2X unlimited miles on each purchase made for the business and an additional 5X on rental cars and hotels booked through their affiliate service, Capital One travel.
Other benefits include:
Zero foreign transaction fees
Free employee cards
Low credit score permits- applicants with limited fair credit may qualify
Offers business spending management tools
2. American Express Business Gold
The American Express Business Gold is ideal for the big spenders as it has a relatively high annual fee. Regardless, users stand to earn massive rewards thanks to the 4X reward rate in two categories from the following options:
Shipping
Gas Stations
Advertising Purchases
Technology
Restaurants
Airfare
The 4X points are redeemable for the first $150,000 spent annually and any top two categories, and a point per dollar earned after that. The Amex Business Gold Card also offers customers robust travel benefits and flexible redemption and point transfer options.
Chase Ink Business Cash is the ultimate go-to for many business needs. They reward you for things you are sure to spend your money on, such as business phone services, Internet and cable purchases, gas stations, and restaurants. They offer 2% to 5% cash back on the first $25,000 spent on these essential services and guarantee a 1% cash back on all other purchases.
With a Chase card, you can save on collision insurance, usually offered by rental car companies, and allow you to protect valuables from theft or damage for 120 days on $10,000 per claim and $50,000 per account. It certainly does not end there, as the benefits extend to manufacturer warranties on purchases made within an additional year.
This card offers zero annual fees and 2% cash back for $50000-worth of purchases made within a year, followed by 1% cash back on other purchases. The Blue Business Cash Amex also empowers its users to spend above their credit limit through an expanded buying power program.
Other considerable benefits include the following:
Automatic crediting of rewards to your statement
Zero charges for employee cards
Account management tools, including an end-year summary and expense report
Access to account alerts and monitoring
Purchase Protection
Extended manufacturer’s warranty on purchases
5. Chase Ink Business Unlimited Credit Card
The Chase Ink Business Unlimited credit card is an excellent addition to the Chase Ink credit card line-up. It has numerous similarities to a personal credit card, offering 1.5 % unlimited cashback on purchases across all categories. It also provides employee cards at no additional costs and a zero annual fee.
Similar to the Ink Business Cash Card, the Unlimited version has a $900 cash-back sign-up bonus for newcomers for $6,000 spent within the first month. However, Chase Ink Business Unlimited earns customers the highest base rate, which could benefit businesses that spend huge amounts on expenses.
6. The Business Platinum Card from American Express
The major selling point of the Business Platinum Card is the welcome offers that usher new users to 120,000 Amex Membership rewards after spending $15000 within the first three months. Other considerable benefits include the following:
5X points earned on booking flights and making hotel reservations through the Amex platform
Statement Credits for purchases with Dell and a CLEAR membership
1.5x points on purchases from various categories
A free pass to Global Lounge Collection
The premium card may have a $695 annual fee. Regardless, the perks definitely outweigh this hefty price.
7. CitiBusiness Advantage Platinum
The CitiBusiness Advantage Platinum credit card is a great option for small business owners looking for a standard rewards program with some benefits, including:
Introductory APR for purchases and balance transfers
No annual fee
A chance to earn 1 point per dollar on purchases and 2 points per dollar on travel and dining purchases
The chance to earn 5 points per dollar spent on qualifying business expenses, including business cards and business checking accounts