Start-up businesses can consider taking out a business credit card as one of the short-time business financings.
Business credit cards are very much helpful especially during the early phases of an industry, when the start-up is struggling to arrange the capital for expansion.
Business credit cards also help start-ups to manage their cash flow which is challenging especially during the early phases. Also, a business credit card helps the new growing industries to build a strong credit history that is effective for the future.
Business credit cards offer more attractive rewards to start-ups compared to personal credit cards. You can be offered perks that range from up to 2% cash back on purchases on point-based rewards schemes. This strategy enables start-up businesses to redeem points against purchases.
So, starting with a business credit card is one of the best bets for start-ups. Below, we are going to cover the 7 best business credit card options that you must consider today.
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A business credit card is one of the great financial tools to gain access to funds and grow the business very quickly for start-up businesses. Especially for businesses that don’t qualify yet for business loans. Business credit cards are very much essential for not only big firms but also for small industries, freelancers, and start-ups.
The best business credit cards offer balance transfers, travel packs, higher credit limits, 0% intro APR, and rewards in specific purchase categories. A business credit card helps you to keep your business and personal account separate and distinct.
Intro APR: 0% Intro APR on purchases
Annual fee: $0
Regular APR: Variable; 16.24%-22.24%
Credit needed: Good, Excellent
Chase Ink Business Cash is our no. 1 business credit card for startups because it offers various opportunities to lower your credit cost and generous rewards. When you are establishing a new office for your business, you can earn a 5% cashback offer on office supplies, cable, internet, and phone services for up to $25,000 each year.
Chase credit card also offers:
Intro APR: N/A
Annual fee: $0
Regular APR: 29.99% (variable)
Credit needed: Fair
If you owe a fair credit score (580 to 699) and are planning for a new business, you have a chance to be qualified for the Capital One Spark Classic business credit card. It provides you with various benefits that help you to boost your business. It offers startup businesses a 0% annual fee and unlimited 1% cash back on each purchase. It also helps you to strengthen your credit rating and also comes with free employee cards with customizable spending limits.
Some other benefits are:
Intro APR:
Annual fee: $0
Regular APR: variable 16.74%- 25.74%
Credit needed: Good/ excellent credit
If the primary need of your startup is to frequently purchase business equipment and furniture, then you can opt for a US bank Business Platinum Card. This will be a great choice for your business to grow. It provides the longest 0% APR periods compared to other credit card companies on the list. So, it makes this card the best 0% APR Business credit card in the US.
It provides you with a zero-interest financing option on purchases and balance transfers for 18 billing cycles. This helps you to budget your monthly payments because within a year or half your balance is likely to be zero till the time when regular APR kicks in.
Some other benefits are:
Intro APR: 0% APR for first 15 billing cycle
Annual fee: $0
Regular APR: Variable 16.99%-25.99%
Credit needed: Excellent/Good
If you are looking for a business card that offers you free interest for the longest period for both the purchases as well as the balance transfers and also you want to get rewards on purchases, then you can go forward with US Bank Triple Cash Rewards World Elite MasterCard. It is one of the great options for startups.
You can enjoy the benefit of zero-interest financing for the first 15 months of opening the account. Additionally, you can also earn up to 5% cash back based on the purchase category.
Some other benefits are:
Intro APR: 0% on purchase
Annual Fee: $0
Regular APR: Variable 17.99%-25.99%
Credit needed: Good/ Excellent
The American Express Blue Business Cash credit card enables you to earn 2% cash back on eligible purchases ranging up to $50,000 per calendar year; after that 1% cash back. It comes with expanded buying powers that let you purchase beyond your credit limit whenever you require to.
The amount that you will spend beyond your credit limit will be adjusted based on your card usage, credit record, payment behavior, and financial resources. It will be a great initiative if you plan to use the business card right away as it offers an easy approval process if you meet the requirements.
Some other benefits that you will be offered are:
Intro APR: no
Annual fee: $195
Regular APR: Variable 18.74%-26.74%
Credit needed: Good/ Excellent
If your business requires big purchases frequently, Chase Ink Business Premier Credit Card offers you 2.5% cash back on transactions of $5,000 or more. So, you can save $125 per $5,000 purchases. Additionally, you can also enjoy 5% cash back on travel purchased via Chase Ultimate rewards.
Also, you can enjoy 2% cash back on other purchases. This business card is a pay-in-full card, which means your balance is due in full each month.
Some other benefits are:
Intro APR: 0% on purchases
Annual fee: $0
Regular APR: variable 16.24%-22.24%
Credit needed: Good/ Excellent
Chase Ink unlimited business credit card offers unlimited 1.5% cash back on every purchase, making this card an ideal one for startups who don’t have enough time to track their spending categories. Similar to Chase Ink business cash, this card also comes with a 0% APR for 12 months. Additionally, you can also earn a $750 bonus when you spend $6,000 within the first three months of the card membership.
Some other benefits are:
Ans: Using a business credit card for funding a startup is an ideal idea if you do not qualify for a startup business loan. A credit card application process is quite simpler and you will get approved quite fast compared to a small business loan.
Ans: Yes, you can opt for a business credit card for a startup business. A business credit card helps you out with business expenses. It is available for many businesses including startups.
The best business credit card for your startup is the one that is tailored to your needs. You need to choose the business card that offers you lucrative rewards for each expense. Also, a business card helps you with interest-free financing on substantial purchases.
So, if you are getting confused in selecting the best business credit then check out our list of 7 best business credit cards for startups.
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