Credit Cards (US)

5 Must-have Credit Cards for Small Business Owners

Don't let financial constraints hold your business back. Learn how small business credit cards can provide the financial flexibility you need to seize opportunities and achieve your goals!

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5 Must-have Credit Cards for Small Business Owners. Source: AdobeStock

Handpicked credit cards can play a pivotal role in supporting small business owners as they navigate the intricate aspects of their enterprises. These cards simplify financial business growth.

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They provide convenient access to capital for operational needs. Plus, the ability to separate personal and business expenses and the potential to establish and strengthen a positive credit history.

Additionally, these credit cards often come with enticing perks such as cashback rewards and travel points. Dive into the details of 5 credit cards handpicked for small business owners.

What are the best credit card options for small business owners?

Small business credit cards are indispensable tools! They empower entrepreneurs to navigate the intricacies of cash flow management, expense tracking, and access to crucial funds.

Join us as we uncover credit cards finely tuned to meet the individual needs of small business owners!

Blue Business® Plus Credit Card from American Express

What sets this credit card apart is its straightforward approach. Furthermore, cardholders can collect valuable reward points on every purchase, offering a range of redemption possibilities.

Nevertheless, note that the Blue Business® Plus Credit Card comes with an annual spending cap on its rewards. This implies that the earning rate is applicable only up to a specific threshold.

  • Annual fee: The absence of an annual fee makes this card a money-saving option for small businesses.
  • Rewards: When using this card, you can accumulate 2x Membership Rewards points on eligible purchases annually, up to $50,000 in spending. After reaching this limit, you’ll earn 1x point per dollar spent on eligible purchases.
  • APR: For a specified period, experience a 0% initial APR on purchases, followed by a variable APR that can range from 18.49% to 26.49%.
  • Intro offer: No traditional introductory bonus offer. Instead, its primary appeal lies in its ongoing reward structure.

Bank of America Business Advantage Unlimited Cash Rewards Mastercard®

Pay for goods by credit card through a smartphone in a coffee sh
5 Must-have Credit Cards for Small Business Owners. Source: AdobeStock

Small business owners looking for credit cards to earn cash back on business expenses find the Bank of America Business Advantage Unlimited Cash Rewards Mastercard® an exceptional choice.

While it has its advantages, it might not deliver as robust a cash back rate or features as other cards. So you should weigh these factors when considering applying for this card.

  • Annual fee: There’s zero annual fee attached to this card.
  • Rewards: With the Bank of America Business Advantage Unlimited Cash Rewards Mastercard®, you’ll experience the ease of earning an unlimited 1.5% cash back on all eligible purchases.
  • APR: The card often comes with a 0% introductory APR on purchases for an initial period, after that variable is 19.49% to 28.49%.
  • Intro offer: Once you’ve spent a minimum of $3,000 within the initial 90 days of activating your account, you qualify for a $300 online statement credit.

Chase Ink Business Preferred® Credit Card

Another one of the must-have credit cards for small business owners, the Chase Ink Business Preferred® offers robust rewards. Especially for businesses that frequently spend in its bonus categories.

Still, this card does come with an annual fee and a high spending requirement for the sign-up bonus. So it’s essential to assess whether the benefits align with your business’s needs and spending habits.

  • Annual fee: Factor in a $95 annual fee when planning your budget with this credit card.
  • Rewards: Earn valuable Chase Ultimate Rewards points that can be redeemed for cash back, travel, or transferred to partner loyalty programs, offering versatility in how you use your rewards.
  • APR: Variable APR goes from 21.24% to 26.24%.
  • Intro offer: By making $8,000 in purchases within the initial 3 months of opening your account, you’ll earn an impressive 100,000 bonus points, which can be converted to either $1,000 in cash back or $1,250 in travel rewards through Chase Ultimate Rewards®.
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American Express Business Gold Card

The American Express Business Gold Card is a powerful choice for businesses, especially those that regularly spend heavily in the specified bonus categories, as it offers substantial rewards potential.

While it has its benefits, it’s crucial to note the annual fee associated with this card. Small business owners should explore their choices thoroughly, as there might be credit cards better suited to their needs.

  • Annual fee: The annual fee for this card may be on the higher side for some, at $295.
  • Rewards: Gain 4x points in your two preferred categories, 3x points on flights and prepaid hotel reservations, and 1x points on all other transactions.
  • APR: The APR for purchases is subject to variation, ranging from 19.49% to 27.49%, contingent upon your creditworthiness and other relevant factors.
  • Intro offer: If you complete $10,000 in eligible purchases using your card in the first 3 months of Card Membership, you’ll be entitled to 70,000 Membership Rewards® Points.
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Capital One Spark 1.5% Cash Select

In summary, the Capital One Spark 1.5% Cash Select is a cash back card that prioritizes transparency, making it one of the most economical credit cards for small business owners.

it may not come with as many advantages or boast as generous cashback rates in particular categories compared to some of the other business credit cards mentioned previously.

  • Annual fee: You can enjoy this credit card without worrying about an annual fee.
  • Rewards: Benefit from a never-ending 1.5% cash back on every business expense, no matter where you make your purchases, with no caps or category constraints. Plus, receive unlimited 5% cash back on hotel and rental car bookings through Capital One Travel.
  • APR: Take advantage of a 0% introductory APR during the initial 12 months, followed by a variable APR between 21.24% and 29.24%, based on your creditworthiness.
  • Intro offer: This credit card doesn’t provide the typical sign-up bonus for new cardholders.

How can small business owners benefit from using credit cards?

Young man hands holding credit card and using laptop with shopping cart icon. Online shopping, Online payment and e-commerce concept. Business financial technology. hand typing on keyboard.
How can small business owners benefit from using credit cards? Discover next. Source: AdobeStock

Firstly, it’s crucial to use business credit cards wisely and within the means of the business’s cash flow. However, there are clear benefits to using them and making the most out of their rewards.

Improved Cash Flow

Credit cards can offer a revolving line of credit, allowing business owners to cover expenses while waiting for payments from customers. This helps in managing cash flow gaps and ensures bills are paid on time.

Separation of Business and Personal Finances

Moreover, using a business credit card helps separate personal and business expenses, making financial record-keeping and tax filing much easier.

Expense Tracking

Credit card statements provide detailed records of all transactions, making it easier to track and categorize business expenses. Therefore, this simplifies budgeting and financial analysis.

Rewards and Benefits

Many business credit cards offer owners rewards programs, such as cashback, travel rewards, or discounts on business-related purchases. These rewards can provide significant savings over time.

Credit Building

Responsible use of a business credit card can help establish and build a business credit history. Moreover, this can be important when seeking business loans or financing in the future.

Purchase Protections

Business credit cards often come with purchase protections, such as extended warranties, fraud protection, and dispute resolution services, which can be valuable for businesses.

Emergency Financing

In case of unexpected expenses or emergencies, having a credit card as a backup source of funding can be crucial for keeping the business running smoothly.

Vendor and Supplier Relations

Using a credit card for business purchases can improve relationships with suppliers, as it demonstrates reliability and can lead to more favorable terms.

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What features should small business owners look for in a credit card?

When choosing among credit cards for their small business, owners should consider several key features to ensure it align with their financial needs and goals. Check out some of them below.

Credit Limit

Firstly, assess whether the card offers a suitable credit limit that matches the business’s financial requirements without risking excessive debt.

Interest Rates

Another very important feature is the card’s APR. So, compare the card’s APR (Annual Percentage Rate) for purchases and balance transfers to ensure they are competitive and affordable.

Annual Fee

Understand the annual fee, if any, and evaluate whether the card’s benefits, such as rewards or features, justify this cost. Some cards may waive the annual fee for the first year.

Rewards and Cashback

Carefully review the rewards structure. Then, determine whether the card offers cashback on specific categories like office supplies, travel, or dining, and assess how these rewards can be redeemed.

Employee Cards

If your business has employees, check if the card allows you to issue additional cards for them. Ensure that you can set spending limits on employee cards and receive itemized statements for each cardholder.

Credit Building

Verify that the card reports your business’s payment history to business credit bureaus. This helps establish and build a positive business credit profile, which can be beneficial for future financing.

How can credit cards help manage expenses and cash flow for small businesses?

Credit cards offer valuable tools for small business owners, providing immediate access to a line of credit, and ensuring that businesses can cover essential expenses even when faced with temporary cash flow challenges.

Moreover, credit cards offer flexibility in payment options. Small business owners can make minimum payments during periods of financial tightness and settle the full balance when funds become available.

Many credit cards offer an interest-free grace period. During this period, no interest is charged on new purchases, allowing businesses to delay payment without incurring interest charges.

Plus, certain credit card expenses, such as interest and specific fees, may be tax-deductible for businesses, reducing the overall tax liability.

The U.S. Bank Business Leverage® Visa Signature® Card is an ideal option for small businesses seeking financial flexibility and robust benefits.

Want to know more? See the full review for this amazing card below!

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About the author  /  Vinicius Barbosa

Vinicius Barbosa is a writer of finance-related content on this portal. Graduated in Social Communication, he writes about everything that involves the world of finances, from credit card recommendations to investment tips, for readers who want to make better decisions when it comes time to spend their money or invest wisely.

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