Starting a business is an incredible challenge. Aside from serial entrepreneurs, most small business owners must create their company’s infrastructure from scratch including payroll, accounts receivables, human resources and more. And when it comes to credit cards, new business owners are faced with a wealth of choices.
What New Small Business Cardholders Should Look For
New small business cardholders will want to start with a simple business credit card that meets their basic needs. The primary function of a small business card is to make business purchases that are separate from your personal expenses. Small business cards can offer additional bonuses, like reporting features that make it easier to plan, budget, and prepare your taxes, and they can help you establish business credit (and build it if you make on time payments). Also, a good small business card should offer additional cards for employees at no cost.
A small business card can be a means to finance purchases. If you’ll be relying on this capability, then your card should have a low standard interest rate, and possibly a promotional financing offer. But as with any credit card, the key to controlling your costs is to minimize the amount of debt that you carry.
Finally, a small business credit card can offer valuable rewards in the form of points, miles or cash back. If you’re a first time business credit card user, you should be content to earn cash back while avoiding the confusing reward programs offered by airlines and hotels.
4 Small Business Cards to Consider
Here’s a card that has many of the qualities that a new small business owner would look for. It has no annual fee and offers unlimited. New cardholders can also earn .
You can also order additional employee cards a no cost. This card comes with aintroductory financing offer , and the standard rate will be APR after that, based on your creditworthiness. Other benefits include quarterly and year-end summaries, purchase security and extended protection policies, and no foreign transaction fees. (Editor’s note: This credit card offer was updated June 29 to reflect new terms.)
This is the entry-level card offered in Chase’s Ink line of business cards, and it’s perfect for new small business owners. It offers the chance toThis applies to your first $25,000 spent each card anniversary year in combined purchases at office supply stores and on cellular phone, landline, Internet and cable TV services.
There’s aannual fee for this card, but it still offers many of the other features found on other Ink cards. You can order employee cards at no additional cost, and you can use the Ink app to download your receipts, tag your purchases and create reports. It also includes extended warranty coverage, a purchase protection policy, baggage delay insurance and lost luggage reimbursement.
3. Business Edge Platinum Card From US Bank
(Editor’s note: This credit card offer was accurate as of publication date. Rates and Terms and subject to change.) This is a simple small business card which includes an outstanding promotional financing offer. New applicants receive 12 months of 0% APR financing on both new purchases and balance transfers, followed by a standard APR of 10.74% – 18.74%, based on your creditworthiness. It also offers you free employee cards and the ability to download a year-to-date summary or an annual account summary. There’s no annual fee for this card.
American Express currently offers 11 different credit and charge cards for small business owners, but this is one of the simplest. It offers you.
Benefits include a baggage insurance plan, purchase protection, extended warranty coverage, and additional employee cards at no cost. You can also use the ReceiptMatch app to help track your expenses, and account alerts to be notified of employee spending. There’s no annual fee for this card.