best business credit cards
Introduction
Easy accessibility to cash can create a new opportunity in business or any other area of human endeavor. Business credit cards are the answer to it. For cash management, they are used as control over expenditure levels and as a reference for cash back or other reward programs. There are thousands of offers available for buying and it turns into a confusing process to identify the most optimal one that fits the specific business.
Problem
If you are starting your business, a new business, or a fast-growing one, you require a business credit card that addresses your needs. Although some of the cards promise big rewards, they charge very high fees for making the offers or they set a very high spending limit.
Others offer low interest to say this but they do not come with the extra tools to help your business expand. To top it off, managing employee spending or handling irregular cash flow can be made harder with the wrong card in your wallet.
The wrong credit card can lead to:
- Missed rewards opportunities
- Unnecessary interest payments
- Limited purchasing power
- Unclear tracking of business expenses
Agitation
As you can consider yourself as the manager of a small consulting firm. You have just closed a giant deal with a client and you are geared to start the operations. You should address the following expenses: transport, stationery, and equipment. You take out your business credit card to find out that the limit is not as high to cater for these expenses. The interest rate is not as you expected, and debts keep on accumulating.
The wrong business credit card keeps things complex. It is possible to be deprived of the benefits of freeing expenses that could otherwise have been paid for. Perhaps you keep getting caught with high annual fees for services and privileges that are not very relevant. Perhaps your employees running charges that they may have no good method of tracking and settling.
A survey on small business credit card mistakes for 2023 by CardRatings revealed that 35% of the small businesses that make erroneous decisions in choosing their credit cards confessed that they were hugely affected as far as growth was concerned.
Solution
Here are the top business credit cards by category
American Express Business Gold Card
Why It’s Great:
The American Express Business Gold Card is a premium option crafted for businesses seeking to optimize rewards while enjoying flexibility. Holders can earn 4X points in two categories where their business expenditures are highest, up to a total of $150,000 in combined purchases each year.
Key Features:
- 4X Membership Rewards points in two select categories
- 1X points on all other purchases
- Flexible payment option to help you manage cash flow (pay over time or in full)
- $295 annual fee
Case Study
Smith Consulting, a marketing firm with high monthly ad spending, chose the Amex Business Gold Card. With significant expenses in digital advertising and airfare, they consistently earned the maximum 4X points each year. The firm used these points to offset travel costs, earning roughly $5,000 in free flights within a year, significantly reducing overall travel expenses.
Ideal For:
Businesses with significant spending on advertising, travel, or shipping
Those who can leverage the flexible payment options for better cash flow management
Best for Cash Back: Capital One Spark Cash Plus
Why It’s Great:
For businesses that favor uncomplicated, direct cash back instead of managing points, the Capital One Spark Cash Plus is an excellent choice. It offers unlimited 2% cash back on all purchases, eliminating any concerns about spending categories or points redemption.
Key Features:
- $1,200 cash bonus after spending $30,000 in the first 3 months
- No preset spending limit—ideal for high-spending businesses
- $150 annual fee
Case Study
Green Landscaping made frequent large purchases of equipment and supplies. They needed a card that didn’t have category restrictions. By using the Capital One Spark Cash Plus, they earned 2% cash back on everything, translating into $6,000 in cash back after spending $300,000 throughout the year. This additional capital helped offset operational costs and allowed them to upgrade their equipment fleet.
Ideal For:
- Businesses with high, varied spending
- Companies that want straightforward cash back without having to manage categories
Best No Annual Fee: Chase Ink Business Cash Credit Card
Why It’s Great:
The Chase Ink Business Cash offers great rewards without the burden of an annual fee. It’s perfect for small businesses looking to maximize cash back on office supplies, internet, and phone services.
Key Features:
- 5% cash back on the first $25,000 spent on office supplies and internet, cable, and phone services
- 2% cash back on the first $25,000 spent on gas and dining
- 1% cash back on all other purchases
- $750 bonus cash back after spending $6,000 in the first 3 months
- No annual fee
Case Study
Jones Accounting Services did not wish to be charged an annual fee to incur constant costs, which included printing and stationery, software, and client meals. With the Chase Ink Business Cash Card, they were able to receive 5% cash back on most of their expenses without attracting additional fees and save over $1,200 on cash back per year.
Ideal For:
- Small businesses with moderate office or tech expenses
- Those looking to avoid an annual fee while still earning substantial rewards
Best for Startups: Brex Card for Startups
Why It’s Great:
The Brex Card for Startups is especially suitable for new companies with great prospects for scaling up their business. Unlike a guarantee from an individual or a credit check from the owner, Brex checks your business’s performance to set credit limits.
Key Features:
- No personal guarantee required
- 7X points on rideshare services, 3X points on restaurants and travel, 1X points on everything else
- 30-day payment terms
- No annual fee
Case Study
TechApp LLC, a startup developing a mobile application, opted for the Brex Card due to its lack of a personal guarantee. Since they were reinvesting all their revenue back into product development, traditional credit cards were not ideal. The Brex card allowed them to manage high initial spending without impacting personal credit. Within the first year, TechApp used the points they earned on employee travel, saving $2,500 on flights.
Ideal For:
- Startups and tech companies
- Businesses without a long credit history
FAQs
What is a business credit card?
A business credit card is one meant for usage with the company’s expenses for its facilitation; it has features for the company.
How much does one have to have creditworthiness to obtain a business credit card?
This often ranges from a good to an excellent credit score, which ranges from 670 and above.
What do business credit cards entail?
Of course, there are, and with it, you get bonuses in the form of cashback, travel points, and discounts for business expenses.
Are new businesses allowed to open business credit cards?
Yes, startups are welcome but depending on their personal and business credit history.
Conclusion
Selecting the right business credit card is therefore all about ensuring that the facility has advantages that suit the needs of the business. Whether you are looking to get the most from your rewards, wanting the ease of cash back, attempting to control travel expenses, or just looking for clarity, the right card is out there for your business.
Now, it’s your turn. Review your own business’s tendencies of spending and/or find out which credit card is suitable for the management of cash outflow as well as the provision of rewards to ensure that your business continuously expands.