Why business credit cards are a good finance option for caterers
A business credit card can be a great financing option for a catering business because it allows you to make everyday purchases and defer paying for them. Your business costs can add up quickly. Catering businesses may not get paid in full for an event until after it’s over, so you may not have the money on hand to cover costs upfront. That’s where a good business credit card can help.
Not only do credit cards let you buy items you need now and pay for them later, they can also help you earn rewards just for buying things you already need. You can get easy cash back rewards for qualifying purchases or earn travel rewards or bonus points at office supply stores, for example. Many credit cards offer balance transfers with 0% APR, which can help you pay down existing credit card debt without getting overwhelmed by interest.
Also, many business credit cards let you get free employee cards so that your staff can make business purchases as well.
Types of catering service business funding needs
Running a catering business means paying upfront for frequently used items and ingredients. Your menu may change with every new client, and you’ll have to get fresh ingredients and groceries to cater the event. You’ll also need to have the right equipment, including stoves, ovens, pots, pans, cutting boards, and more. There’s also equipment to transfer food to events and keep it warm or cold, plus serving utensils, plates, and silverware.
Furthermore, you’ll need a way to get the food to the events, which usually means a vehicle or fleet of vehicles — all of which will need insurance, maintenance, and, of course, fuel. Catering businesses also need phone services, including cell phones and data plans, to help keep their business running on-the-go.
Finally, if you have serving staff, kitchen staff, or other employees, you’ll need to have cash in the bank for them to cash their paychecks, which means you need to have some wiggle room in your cash flow. A business credit card can help you make these regular purchases, earn rewards, and keep liquid cash on hand for payroll and other expenses.
Best business credit cards for catering service businesses
The best business cards for catering business will have a rewards program based on eligible purchases in line with your regular business expenses, like groceries, office supplies, phone services, and gas stations. Whether it’s rewards points or cash back through a statement credit on the next billing cycle, finding a card that offers bonus rewards for your top spending categories can help you cover expenses and make money back.
Other features to look for include welcome offers, like sign-up bonuses, bonus reward points, or an introductory APR at account opening. Also, make sure that the card has an annual fee that you are comfortable with. Many cards have low or no annual fees, but if the rewards are high enough that you’ll earn more than the fee costs, it may be worthwhile. Interest rates can add up if you don’t pay the card off on a monthly basis, but 0% intro APR for the first year can help you stay on top of expenses while you build your business.
If you travel internationally and plan to use the business card on travel purchases, look for a card with no foreign transaction fees and card membership perks like airport lounge access or elite status on flights. It’s also a good idea to get a card that offers purchase protection or an extended warranty in case something happens to items you buy.
If you’re looking to make a balance transfer, look for a card that has 0% APR for a set period of time and has a low balance transfer fee. Also, make sure the card allows for additional cardholders at no charge, so any employee who needs a card can get one.
Each card provider will have its own requirements to qualify for its business cards, and terms apply, so check terms and conditions carefully before you sign up. The cards you qualify for will depend on your credit history, personal credit and business credit scores, as well as your annual revenue, time in business, and other factors. Your credit limit will also be determined by these factors, so make sure you get a card with spending limits that actually cover your monthly expenses. If you don’t already have business credit scores, it’s a good idea to learn how to establish business credit and start building.
Best business credit cards for cash back
A good cash back card account will give you a statement credit for qualifying purchases in line with your business needs. For a catering business, you probably want cash back for groceries, kitchen expenses, and gas. Unfortunately, most rewards cards that offer cash back on bonus categories like groceries are personal credit cards instead of business cards. But many of your catering purchases can still be categorized as restaurant or dining purchases, and many business credit cards give great cash back offers on those. Here are a few cards that offer some good cash back rewards for catering businesses.
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One of the highest cash back rates available for small business cards.
Pros
- Attractive intro financing offer
- High rates of cash back for business spending
- No annual fee.
Cons
- No rewards bonus for initial spending
- Foreign transaction fees.
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Best business cards for perks
A rewards credit card should offer membership rewards points for purchases you make often, and a good business card for caterers will provide perks that line up with your needs. If you travel, these business cards offer great cardmember travel perks, like upgrades, lounge access, and bonus miles.
Earn elite status membership and premium perks for business travel.
Pros
- Access to multiple airport business lounges, $200 annual airline fee credits, elite status with hotel and rental car programs, and strong purchase protection policies
- This card also earns points in Amex’s excellent Membership Rewards program.
Cons
- This card has a steep annual fee.
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Delta SkyMiles® Gold Business American Express Card
For business owners who fly Delta enough to want the rewards and benefits without the high annual fee.
Pros
- Amazing limited time offer! Perks when flying with Delta
- Makes it easier to earn Medallion elite status.
Cons
- Delta SkyMiles are not worth as much as other airline miles.
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Best credit cards for new catering business owners
If you’re starting a new business, you need a small business card that will help you purchase new equipment, marketing materials, and other needs to get your business started. These cards can help you get your business off the ground, even if you don’t have much credit history.
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All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Pros
- All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav
- This card is not currently available through Nav
- To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Cons
- All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav
- This card is not currently available through Nav
- To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Intro APR
Purchase APR
Annual Fee
Welcome Offer
BILL Divvy Corporate Card
Eligibility based more on revenue, requires full repayments monthly.
Pros
- Free and flexible expense management platform
- No annual fee.
Cons
- No early spend bonus and lower rewards than other cards
- Must pay off all balances in full each month.
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Best credit cards for no annual fee
For many small business owners, an annual fee on your credit card may not be a worthwhile additional cost especially when you’re just building your business. These credit cards offer no annual fee.
All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav. This card is not currently available through Nav. To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Pros
- All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav
- This card is not currently available through Nav
- To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Cons
- All information about the Chase Ink Business Cash℠ Credit Card has been collected independently by Nav
- This card is not currently available through Nav
- To see what business credit cards are available, please visit the Nav Credit Card Marketplace.
Intro APR
Purchase APR
Annual Fee
Welcome Offer
Intro APR
Purchase APR
Annual Fee
Welcome Offer
If you’re overwhelmed with the number of business credit card offers out there, Nav can remove the guesswork. We use your business data to find you the best options on business credit cards, small business loans, and other financing you’re most likely to qualify for. Use Nav today to start seeing your options.
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Kat Cox
Kat Cox works to provide answers to the questions small business owners have about how to set up, run, or fund their businesses. When she’s not writing blogs, articles, short fiction, or (kind of bad) French poetry, Kat can be found lacing up her tennis shoes for a run or walk with her pup or scouting for the best karaoke spot in Austin, Texas.