This blog post will describe the Best business credit cards for small businesses, providing detailed insights into their rewards, features, and overall value. With so many options available, understanding which cards offer the best combination of incentives for your business can help you make an informed decision.
In today’s highly competitive business landscape, efficient financial management can be a key determinant of success for small businesses. One of the most useful tools in this regard is a business credit card. These cards offer numerous benefits, from efficient expense tracking to valuable rewards and flexible financing options. Similarly, if you are looking for cash back, travel rewards, or low-interest financing, choosing the right business credit card can provide significant advantages for your company
Why You Best Business Credit Cards For Small Businesses
Before discussing top card options, it is important to understand why your small business needs a dedicated business credit card. While personal credit cards might suffice for some initial expenses, a business credit card offers distinct advantages to business owners and entrepreneurs:
- Separation of Personal and Business Expenses
One of the biggest advantages is keeping your personal and business expenses separate, which makes tax time easier and improves overall organization.
- Building Business Credit
A business credit card can help you establish and build your company’s credit profile. This can be crucial if you need to apply for loans or financing in the future.
- Expense Management
Many business cards offer tools that make it easier to manage employee spending, track purchases, and analyze spending patterns.
- Rewards and Perks
Business credit cards often provide rewards programs tailored to business spending, offering cash back, points, or miles on everyday business purchases like office supplies, shipping, and travel.
Higher Credit Limits
Business credit cards tend to offer higher credit limits compared to personal credit cards, which can be beneficial for businesses with higher monthly expenses.
Features to Consider When Choosing a Business Credit Cards for Small Businesses
When selecting a business credit card, consider the following features to ensure you choose the one that best fits your company’s financial needs:
- Rewards Structure: Look at where your business spends the most and choose a card that maximizes rewards in those categories, whether it’s travel, office supplies, or advertising.
- Introductory Offers: Many business credit cards offer attractive sign-up bonuses or 0% APR introductory periods. These can provide a significant short-term boost in value, especially for new or growing businesses.
- Annual Fees: Some cards have no annual fee, while others offer higher rewards or perks in exchange for a fee. Determine if the benefits justify the cost for your business.
- Credit Requirements: Different cards have different credit score requirements. Choose a card that aligns with your business’s current credit standing.
- Employee Cards and Spending Controls: If you have employees who need to make purchases on behalf of the business, check if the card allows additional employee cards and offers tools to manage spending.
Chase Ink Business Preferred® Credit Card
Best For: Overall rewards and travel. The Chase Ink Business Preferred® Credit Card is one of the top-rated cards for small businesses thanks to its versatility and generous rewards structure.
It is particularly popular among businesses that have frequent travel expenses, such as those in consulting or sales. The card earns 3x points per dollar spent on the first $150,000 annually in categories such as travel, shipping, advertising purchases, and internet/phone services. All other purchases earn 1x points per dollar.
Features
- Earn 3x points in high-value business categories (travel, shipping, advertising, and internet services), which can add up quickly for businesses with large annual expenses.
- Points can be redeemed for travel, gift cards, or cash back. If you book travel through Chase Ultimate Rewards, points are worth 25% more.
- No foreign transaction fees and extensive travel insurance coverage, including trip cancellation/interruption insurance and auto rental collision damage waiver.
- Chase offers a competitive credit limit for small businesses, and with responsible use, your credit line can grow over time.
2. American Express Blue Business Cash™ Card
Best For Cash back with no annual fee. For businesses that want to earn simple and effective cash back without worrying about an annual fee, the American Express Blue Business Cash™ Card is an ideal option. With 2% cash back on the first $50,000 in purchases each year (then 1% afterwards), it offers value to businesses with moderate annual expenses.
Features
- Earn 2% cash back on all eligible purchases up to $50,000 annually. Once this limit is reached, you will earn 1% cash back on further purchases for the year.
- This card offers expanded buying power, which allows businesses to spend beyond their credit limit based on factors such as your payment history, spending habits, and creditworthiness.
- New cardholders can earn a $250 statement credit after spending $3,000 in the first three months.
- With no annual fee, this card offers great value for small businesses that want to earn cash back without worrying about extra costs.
3. Capital One Spark Cash Plus
Best For: Unlimited cash back. The Capital One Spark Cash Plus is designed for businesses that want a simple, no-nonsense rewards program. It offers unlimited 2% cash back on all purchases, making it easy for business owners to earn without needing to track spending categories. However, it is a charge card, meaning you’ll need to pay your balance in full each month.
Features
Earn unlimited 2% cash back on every purchase, regardless of the category. This can provide significant rewards for businesses with diverse spending needs.
Earn up to $1,000 in cash bonuses ($500 after spending $5,000 in the first three months and an additional $500 after spending $50,000 in the first six months).
This card comes with no preset spending limit, giving businesses more flexibility to make larger purchases when needed.
$150, which can be offset by the rewards earned through regular business expenses.
4. Brex Card for Startups
Best For: Startups and fast-growing businesses. The Brex Card is specifically designed for startups and fast-growing companies that may not have established credit histories. Unlike traditional business credit cards, the Brex Card doesn’t require a personal guarantee or credit check. Instead, credit limits are based on your company’s financials and cash flow.
Features
- Earn 7x points on rideshare services, 4x on travel, 3x on restaurants, 2x on software purchases, and 1x on all other purchases. This is a particularly attractive rewards structure for tech-driven and high-growth startups.
- Since Brex doesn’t require a personal guarantee, the risk to the business owner’s personal assets is minimized.
- Brex provides robust expense management tools and integrates with accounting software such as QuickBooks and Xero, making it easier to track spending and categorize purchases.
- There is no annual fee for the Brex Card, making it a cost-effective option for startups.
5. Bank of America Business Advantage Customized Cash Rewards Mastercard®
Best For: Customizable cash rewards. The Bank of America Business Advantage Customized Cash Rewards Mastercard® allows businesses to choose where they want to earn the most cash back. This customizable approach means businesses can maximize rewards based on their unique spending patterns.
Features
- Earn 3% cash back in one category of your choice (gas stations, office supply stores, travel, TV/telecom & wireless, or computer services), 2% cash back at restaurants, and 1% on all other purchases. The 3% and 2% categories apply to the first $50,000 in combined purchases each year.
- Earn $300 in online statement credits after spending $3,000 in purchases in the first 90 days.
- Bank of America customers enrolled in the Preferred Rewards program can earn up to 75% more cashback.
- This card has no annual fee, making it a low-cost option for small businesses that want to earn rewards without additional expenses.
6. American Express Business Gold Card
Best For: Flexible rewards categories. The American Express Business Gold Card is a premium option for businesses that want flexibility in how they earn rewards. The card automatically applies 4x Membership Rewards® points to the two categories where your business spends the most each billing cycle, making it ideal for businesses with varying spending needs.
Features
- Earn 4x points in two categories each billing cycle from a list of common business expenses, such as airfare, advertising, shipping, gas stations, and more. This applies to the first $150,000 spent each year, after which you earn 1x points on all other purchases.
- Earn 70,000 Membership Rewards points after spending $10,000 in the first three months.
- The card offers numerous perks, including no foreign transaction fees, travel protections, and purchase protection, making it a strong option for frequent travellers.
- $295, which may be justified by the premium rewards and benefits the card provides.
Selecting the right business credit card is a strategic decision that can significantly impact your company’s finances. Whether you prioritize cash back, travel rewards, or low fees, there’s a card that fits your specific business needs. As you evaluate the options, consider your business’s spending patterns, how you want to earn and redeem rewards, and whether additional perks like travel benefits or expense management tools are important to you.
