Money Analysed

Maximizing Your Startup’s Finances: Best Business Credit Cards

In today’s world, a business credit card is becoming increasingly important for startups. Business credit cards offer a wide range of benefits, including cash back rewards, travel perks, and other incentives for business expenses.

With a little research, you can find the perfect business credit card that offers the best benefits for your specific needs. This article will provide you with an overview of the best business credit cards for startups, as well as the factors you should consider when choosing a business credit card.

Best Business Credit Cards for Startups

Brex Credit Card

The

Brex Credit Card is designed specifically for startups and offers a range of benefits including no annual fee, zero interest for 60 days, and a rewards program that offers cashback on business purchases. One of the key features of the Brex Credit card is its lack of personal guarantee requirement, meaning that Brex doesn’t require the cardholder to put their personal assets on the line if the business can’t pay their debts.

In addition, Brex’s approval process focuses on the company’s cash balance and the company’s growth potential rather than the owner’s credit score.

Ink Business Preferred Credit Card

Chase’s

Ink Business Preferred Credit Card is designed for medium-sized businesses, and offers many benefits such as travel rewards, cellphone protection, and a sign-up bonus. The sign-up bonus is 100,000 Chase Ultimate Rewards points after spending $15,000 in the first three months of account opening.

The card also offers triple points on the first $150,000 spent on travel, shipping purchases and advertising on social media or search engines.

United Business Card

The

United Business Card is an airline rewards card, designed for frequent United Airlines flyers. The card offers travel benefits including priority boarding, free checked bags, and airport lounge access.

The

United Business Card also offers a sign-up bonus of 75,000 miles after spending $5,000 in the first three months of account opening.

Capital One Spark Cash Plus

The

Capital One Spark Cash Plus card offers a 2% cash-back rate on all purchases. The card also offers a sign-up bonus of $500 (after spending $4,500 in the first three months of account opening), and no foreign transaction fees.

One of the benefits of this card is that it’s relatively easy to qualify for, though this card is not for everyone as it carriesa $150 annual fee.

Bank of America Business Advantage Customized Cash Rewards Mastercard

The

Bank of America Business Advantage Customized Cash Rewards Mastercard is a cashback rewards card that offers 3% cashback on a category of your choice, including gas stations, office supply stores, travel, or TV, telecom and wireless services. The card also offers a $300 cash sign-up bonus after spending $3,000 in the first 90 days of account opening.

There is no annual fee for this card.

Factors to Consider when Choosing a Business Credit Card

Length of time in business

When applying for a business credit card, lenders may consider the length of time your business has been operating. Companies that have been around for at least two years are more likely to qualify for credit without a personal guarantee.

If your company is less than two years old, you may be required to provide a personal guarantee as an assurance of payment.

Personal guarantee requirement

A personal guarantee is a promise that you, the business owner, will pay back any debt, interest, and fees associated with your credit. A personal guarantee helps to secure a loan or credit card when a business lacks the appropriate credit history or has poor credit.

A personal guarantee may be required by the lender in order to provide approval.

Credit check

Many lenders will check your credit score when you apply for a business credit card. Your credit score plays a critical role in the approval of your application and determining the terms of the credit card (interest rates, fees, credit limit, etc).

A credit check can affect your credit report, so it’s important to regularly monitor your credit scores and be mindful of how often you’re applying for new credit.

Credit report implications

Using a business credit card can affect your credit report either positively or negatively. Making on-time payments can help establish a positive credit history, but missing payments can hurt your credit score.

It’s important to monitor your credit report for reporting errors and be mindful of your payment history.

Annual fee

Many business credit cards come with annual fees. These fees can vary widely, and can be anywhere from $0 to $500 or more.

You need to weigh whether the cost of the annual fee is worth the benefits that come with it. Furthermore, some business credit card companies may waive the annual fee in the first year as an incentive to sign up.

Signup bonus

Many business credit cards offer new cardholders a sign-up bonus. These bonuses can be anything from a cashback reward to thousands of airline miles.

Be sure to read the terms and conditions for obtaining the sign-up bonus, which often requires you to spend a minimum amount within a specific time frame after opening the account.

Rewards categories

Rewards categories determine where you can earn cashback or rewards points. Some business credit cards have specific categories such as gas, travel, or office supplies that offer extra points or rewards.

Be sure to choose a card that offers rewards categories that align with your business expenses.

Other benefits

In addition to the rewards and sign-up bonuses, many business credit cards offer other benefits such as insurance coverage, travel perks, rental discounts, and fraud protection. Reviewing these benefits can help you decide which card is the best fit for your business.

Conclusion

Choosing the right business credit card can play a big role in your business’s growth and financial success. Being aware of the factors outlined above – personal guarantee requirements, rewards categories, annual fees, and sign-up bonuses – and understanding your business’s particular needs can help you make an informed decision when selecting the ideal card for your business.

Brex Credit Card

As a startup, managing finances can be a challenge, but the

Brex Credit Card is designed to make it easier. The card offers several features and benefits that cater to the needs of business owners.

Here are some details about the

Brex Credit Card:

Features and Benefits

The

Brex Credit Card has several features that are beneficial for startups. The credit card offers:

– High credit limits: Brex’s underwriting process considers the cash balance of the company, not the individual owner’s credit score.

This often results in higher credit limits, providing companies with more financial flexibility.

– No personal guarantee or credit check: You won’t need to provide a personal guarantee, and there are no credit checks required to obtain approval for the card.

Rewards Program: The Brex rewards program is impressive, as it offers cash back on several business-related purchases. For example,

– 7x on rideshare services, including Uber and Lyft.

– 4x on Brex Travel, which is a booking platform for travel expenses like airfare and hotels. – 3x on restaurants and food delivery services.

– 2x on recurring software and hardware purchases. – No

Annual Fee: The Brex Card doesnt charge an annual fee, which helps startups save money. This lack of fees is particularly useful for new companies who want to minimize costs.

Credit Limit

Brex Credit Card assigns credit limits based on a companys cash balance, which is in contrast to traditional credit cards that are based on a persons credit score. This means that cardholders can get a higher credit limit, especially if they have a large amount of capital available.

No Personal Guarantee or Credit Check

Because

Brex Credit Card has no personal guarantee requirement, this means that startups are not required to provide collateral as a form of security for obtained credit. Personal assets, like homes or vehicles, are not on the line if the company goes under.

Additionally, the

Brex Credit Card doesn’t check an individual’s personal credit history when you apply.

Rewards Program

The Brex rewards program is structured to benefit startups. With no preset spending limit, you earn cashback rewards on purchases, beginning with the following:

– 7x points on rideshare services, including Uber and Lyft.

– 4x points on Brex Travel. – 3x points on restaurants and food delivery services.

– 2x points on recurring software and hardware purchases. – 1x points on everything else.

Cashback rewards earned with Brex are deposited directly into the cardholder’s account and can be used to pay the balance off or use for other business expenses.

Downsides

While the Brex credit card offers several benefits, it also has some downsides that startups should consider before applying:

– Charge Card:

Brex Credit Card is a charge card, which means the balance must be paid in full, as opposed to a credit card, which allows for carrying a balance. – Limited Value: Companies may find limited value in the Brex rewards program if they dont utilize the specific categories that come with higher points earning rates.

– Spending Limit: Since Brex doesnt offer a pre-set spending limit, it’s possible that unanticipated purchases can lead to declined transactions.

Ink Business Preferred Credit Card

The

Ink Business Preferred Credit Card is a popular credit card for small business owners that offers cashback rewards, a range of benefits, and other features that cater to the needs of business owners, including:

Features and Benefits

The

Ink Business Preferred Credit Card has several features that are beneficial to small business owners, such as:

– High Rewards Rate: Cardholders can receive 3x point rewards on the first $150,000 spent in select categories each year, including travel, shipping, internet, cable/phone services, and ads purchased with social media sites or search engines. – Travel Benefits: The

Ink Business Preferred Credit Card provides several travel benefits, such as primary rental car coverage and trip cancellation coverage up to $5,000 per trip. Cardholders also get access to a valuable points transfer partners program.

Signup Bonus: New cardholders earn a 100k-point signup bonus after spending $15,000 in the first three months of card membership, which equates to $1,250 in travel rewards or cash. – No Foreign Transaction Fees: The

Ink Business Preferred Credit Card doesn’t charge foreign transaction fees, which is useful for business owners who travel overseas.

Rewards Program

The

Ink Business Preferred Credit Card rewards program is a popular feature for small business owners. Cardholders can earn points on their purchases and redeem them for either cashback or travel-related costs.

One point is equal to one cent when redeemed for cash, and more when the rewards points are redeemed for travel-related costs through the Chase Ultimate Rewards program.

Points Redemption

Cardholders have several points redemption options, including the Chase Ultimate Rewards program, cashback, gift cards, and merchandise. However, the best points redemption option by far is through Chase Ultimate Rewards where cardholders can travel via leading airlines and hotels with up to 25% more value received.

The option to book travel directly with Chase Ultimate Rewards – and the elevated point redemption rate that comes with it – makes the annual fee that comes with the

Ink Business Preferred Credit Card well worth the cost for many small business owners.

Annual Fee

The

Ink Business Preferred Credit Card comes with an annual fee of $95, which is relatively low in comparison to other business credit cards in similar categories. The card benefits, rewards, and particularly the transfer partners program make the annual fee well worth paying.

Conclusion

Both the

Brex Credit Card and the

Ink Business Preferred Credit Card have several features that appeal specifically to the needs of startups and small business owners. Before applying for the credit card of your choice, be sure to consider which rewards categories and benefits will be of most value to your business.

By assessing the specific financial needs and the purchasing habits of the business and owners, entrepreneurs can make a more informed decision about which card to apply.

United Business Card

The

United Business Card is an airline rewards card that offers travel benefits such as free checked bags, priority boarding, airport lounge access, and an extensive rewards program for frequent flyers. Here are some additional details about the

United Business Card:

Features and Benefits

The

United Business Card offers several features and benefits to small business owners who travel frequently for business. The features include:

– Free Checked Bags: Cardholders and a traveling companion receive their first and second checked bags for free when flying United on the same reservation.

– Priority Boarding: When available for their flight, Cardholders and up to two traveling companions can enjoy priority boarding. – Airport Lounge Access: Cardholders receive two complimentary United Club lounge passes annually and are eligible for discretionary upgrades to Premium Cabins.

– Expanded Opportunities to Earn Mileage: Cardholders receive 2 miles per dollar spent on eligible purchases from United Airlines. This card offers 2 miles per dollar spent on local transit including taxis, mass transit, tolls, and ride-share services, as well as on restaurants and purchases made at gas stations.

– No Foreign Transaction Fees: The

United Business Card doesn’t charge foreign transaction fees, allowing business owners to conduct business transactions while traveling abroad without incurring fees.

Rewards Program

The

United Business Cards rewards program offers airline miles and up to 5 miles per dollar spent on United purchases, depending on your status with United MileagePlus. The airline miles earned through the

United Business Card can be used to book future flights on United Airlines or United’s airline partners. Additionally, miles can be used towards other redemptions, including hotel stays and car rentals.

For every dollar spent on United purchases, cardholders can receive 2 miles, and 1 mile per dollar is earned for all other purchases.

Signup Bonus

The

United Business Card offers an attractive signup bonus of 50,000 bonus miles after you spend $5,000 on purchases within the first 3 months of your account opening. This bonus is equal to a minimum of $500 towards travel rewards, as it is worth 1 cent/mile.

Extra Benefits

In addition to the benefits outlined above, the

United Business Card offers a variety of extra benefits to the cardholders, including:

– Hertz Gold Plus Rewards: Enroll in Hertz Gold Plus Rewards for free, and enjoy special discounts on rental cars booked through Hertz. – 25% Back on Food, Beverage, and Wi-Fi Purchases: Cardholders will receive 25% back on in-flight purchases of food, beverages, or Wi-Fi when made using your

United Business Card. – Baggage Loss and Delay Coverage: When travel plans are disrupted, baggage loss and delay coverage give cardholders access to reimbursement for lost or delayed baggage.

Annual Fee

The

United Business Card charges an annual fee of $99, which is typical of most airline rewards cards. However, this fee will easily pay for itself with the benefits and rewards provided to the cardholder.

Capital One Spark Cash Plus

The

Capital One Spark Cash Plus credit card is a cashback rewards card aimed at small business owners who spend frequently. With a straightforward rewards program and a high cashback percentage, this card can provide significant value to the business owner.

Features and Benefits

The

Capital One Spark Cash Plus card offers several

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