As a restaurant owner, there is a lot to juggle when it comes to managing your finances – from purchasing ingredients to paying your staff. A business credit card can simplify your bookkeeping and offer access to needed capital for growth. But with so many options on the market, it can be overwhelming to choose the right one. In this article, we’ll go over the best business credit cards for restaurant owners and what factors to consider when selecting one.
Why Restaurant Owners Need a Business Credit Card
Running a restaurant can be a challenging and rewarding experience. As a restaurant owner, you need to be able to juggle many responsibilities, from managing staff to ordering supplies and equipment. One tool that can make your life easier is a business credit card. In this article, we’ll explore some of the reasons why restaurant owners should consider getting a business credit card.
Simplifying Expenses and Bookkeeping
One of the main advantages of a business credit card is the separation between your personal and business expenses. This can make bookkeeping and accounting easier, as you can track and analyze business purchases separately. When running a restaurant, it’s essential to keep track of all your expenses, from food and beverage costs to rent and utilities. With a business credit card, all of your expenses are in one place, making it simpler to track and organize your finances. This can also save you time when it comes to tax season, as you can easily categorize business expenses for deductions or write-offs.
Building Business Credit
Using a business credit card responsibly can also help establish and build your business credit score. This can improve your chances of qualifying for loans or lines of credit in the future. As a restaurant owner, you may need to borrow money to expand your business or invest in new equipment. Building a strong business credit score can make it easier to secure the financing you need to achieve your goals.
Access to Capital for Growth
Running a successful restaurant requires constant investment in your business. Whether you need to purchase new equipment, expand your restaurant’s footprint, or hire additional staff, you need access to capital to make it happen. Business credit cards offer access to credit that can be used to cover short-term expenses or invest in growth initiatives. This can come in handy if you need to make a large purchase or cover unexpected expenses. With a business credit card, you can take advantage of opportunities to grow your business without having to dip into your personal savings.
In conclusion, a business credit card can be a valuable tool for restaurant owners. From simplifying expenses and bookkeeping to building business credit and accessing capital for growth, there are many reasons why you should consider getting a business credit card for your restaurant. As always, be sure to do your research and choose a credit card that meets your specific needs and goals.
Factors to Consider When Choosing a Business Credit Card
When selecting a business credit card for your restaurant, there are a number of factors to keep in mind. Here are some of the most important ones to consider:
Interest Rates and Fees
Interest rates and fees can have a big impact on the cost of using a business credit card. Look for options with low or no annual fees as well as competitive interest rates. However, keep in mind that some cards with higher fees may offer additional perks and benefits that could ultimately save you money in the long run.
It’s also important to be aware of any other fees that may be associated with the card, such as balance transfer fees or foreign transaction fees if you plan on using the card for international travel.
Rewards and Cashback Programs
Many business credit cards offer rewards or cashback programs that can help offset costs and maximize your spending. Consider which rewards program aligns with your spending habits and offers the most value.
Some cards may offer rewards for specific categories, such as dining or travel, while others may offer a flat rate on all purchases. Be sure to read the fine print and understand how rewards are earned and redeemed before selecting a card.
Credit Limits and Flexibility
You’ll want to make sure that the credit limit of the credit card you select is high enough to cover your business expenses. Additionally, look for options that offer flexibility in terms of repayment terms and credit limits that can be adjusted based on your business needs.
Some cards may also offer introductory 0% APR periods, which can be beneficial if you need to make a large purchase and want to avoid interest charges. However, make sure to pay off the balance before the introductory period ends to avoid high interest charges.
Additional Perks and Benefits
Some business credit cards offer additional perks and benefits, such as discounts on business services or travel rewards. Consider options that provide value beyond just the credit line itself.
For example, some cards may offer access to airport lounges or concierge services that can make business travel more comfortable and convenient. Others may offer discounts on office supplies or other business-related expenses.
Ultimately, the best business credit card for your restaurant will depend on your specific needs and spending habits. Be sure to compare multiple options and read the fine print before making a decision.
Top Business Credit Cards for Restaurant Owners
If you’re a restaurant owner, using a business credit card can be a great way to earn rewards and manage expenses. Here are some of the best business credit cards that we recommend for restaurant owners:
American Express Blue Business Cash Card
The American Express Blue Business Cash Card offers 2% cashback on all eligible purchases up to $50,000 per year. This includes purchases made at restaurants, which can be a significant expense for restaurant owners. In addition to the cashback rewards, the card also has no annual fee, making it a great option for those looking to maximize rewards without a high cost.
Another benefit of the American Express Blue Business Cash Card is that it offers a 0% introductory APR on purchases for the first 12 months. This can be especially helpful for restaurant owners who need to make large purchases to stock up on supplies or equipment.
Chase Ink Business Cash Credit Card
The Chase Ink Business Cash Credit Card offers 5% cashback on office supplies, internet, cable, and phone services up to $25,000 a year. This card also offers 2% cashback on dining and gas, making it a great option for restaurant owners who need to make frequent purchases in these categories. Plus, they offer a $750 cashback bonus after spending $7,500 in the first three months.
Another perk of the Chase Ink Business Cash Credit Card is that it offers free employee cards, which can help restaurant owners keep track of employee spending and earn rewards on those purchases.
Capital One Spark Cash for Business
The Capital One Spark Cash for Business card offers unlimited 2% cashback on all purchases with no minimums or maximums, making it a great option for restaurants with significant monthly expenses. This includes purchases made at restaurants, as well as other business expenses like equipment and supplies.
One unique feature of the Capital One Spark Cash for Business card is that it offers free fraud alerts and account notifications, which can help restaurant owners stay on top of their account activity and prevent fraudulent charges.
Bank of America Business Advantage Cash Rewards Mastercard
The Bank of America Business Advantage Cash Rewards Mastercard offers 3% cashback on one of six categories of spending: gas, office supplies, travel, advertising, computer services, or telecom services. This card also offers a $300 statement credit after spending $3,000 in the first 90 days.
For restaurant owners, the 3% cashback on gas purchases can be especially helpful, as many restaurant owners need to make frequent deliveries or travel for business purposes. In addition, the card offers a 0% introductory APR on purchases for the first nine billing cycles, which can be helpful for managing cash flow.
Overall, each of these business credit cards offers unique benefits and rewards for restaurant owners. By choosing the right card and using it wisely, restaurant owners can earn rewards on their purchases and manage their expenses more effectively.
Maximizing Rewards and Benefits for Your Restaurant
Running a restaurant can be a challenging task that requires a lot of effort and resources. As a restaurant owner, you need to ensure that you are making the most of your business credit card to maximize rewards and benefits. Here are some tips to help you do just that.
Choosing the Right Card for Your Spending Habits
Choosing the right business credit card is crucial to maximizing rewards and benefits. It is important to consider your spending habits and choose a card that aligns with them. For instance, if you spend a lot on restaurant supplies, you may want to consider a card that offers cashback or rewards for such purchases. This can help you earn more rewards more quickly.
Additionally, you may want to consider the annual fee and interest rates of the card. Some cards may have higher fees but offer more rewards, while others may have lower fees but fewer rewards. It is important to weigh the pros and cons of each card and choose the one that best suits your business needs.
Combining Multiple Cards for Maximum Rewards
Combining multiple business credit cards can help you earn even more rewards or cashback on all of your business expenses. Consider having separate cards for certain categories of spending or combining cards from different companies to maximize your benefits.
For example, you may want to have one card for restaurant supplies, another for travel expenses, and a third for office supplies. This way, you can earn more rewards on all of your business expenses and save money in the long run.
Utilizing Card Perks to Save on Business Expenses
Many business credit cards offer additional perks and benefits that can help you save money on your business expenses. For example, some cards offer discounts on business services, such as accounting or legal services. Others may offer travel rewards or access to cashback or rebate programs.
It is important to read the fine print and understand the perks and benefits of your business credit card. This way, you can take advantage of all the benefits and save money on your business expenses.
In conclusion, maximizing rewards and benefits for your restaurant requires careful consideration of your spending habits and the perks and benefits of your business credit card. By choosing the right card, combining multiple cards, and utilizing card perks, you can save money and earn more rewards for your business.
Choosing the right business credit card can make all the difference in managing your restaurant’s finances and improving your bottom line. When selecting a card, keep in mind the factors listed above and consider the options that align with your individual business needs. By doing so, you can maximize rewards and access the credit needed to take your restaurant to the next level.
This article was originally written on April 23, 2023 and updated on August 17, 2023.