Best Business Credit Cards for Balance Transfers of 2023

If you’re a small business owner with credit card debt, a balance transfer to another credit card may help you save money and pay off your debt faster. 

With a small business balance transfer credit card, you can get months or longer to pay down or pay off your credit card balances at a lower interest rate—perhaps even 0%—sometimes for a year or more. These savings can be worth hundreds of dollars, while allowing you to pay off your outstanding balances even sooner.  

Here’s how a business credit card balance transfer may work for your business.

What is a Credit Card Balance Transfer?

A credit card balance transfer is when you use one credit card to pay off all or part of the balance of another card. This effectively transfers the balance to the new card. A consumer or a small business owner will typically perform a balance transfer in order to take advantage of a lower interest rate, which is often a 0% APR promotional financing offer. 

The goal is to save money on interest charges while paying off the outstanding balance faster. 

Why Would A Small Business Need A Business Balance Transfer Credit Card?

Business owners can leverage balance transfers in several ways.

Consolidate High Interest Debt: A low-rate balance transfer can help you consolidate debt at a lower cost. You can then figure out a repayment plan for one debt instead of multiple ones.

Save on Interest. Lower your interest rate means more of your payment will go toward the balance instead of interest.

Improve Cash Flow: Credit cards allow you to pay for purchases over time, and a low-rate balance transfer can allow you to make smaller payments while you focus on increasing sales and/or collecting from customers. 

Simplify Financial Management: If you have multiple accounts you pay off with low-rate balance transfer, you can lower the number of payments you need to make each month and record in your bookkeeping software.

Best Business Credit Card for Balance Transfers

While there are a number of major credit card issuers advertising 0% intro APRs for business credit card purchases, there are few offers for low rate balance transfer business credit cards.  

Some cards that featured them, such as the  U.S. Bank Business Platinum Card or the U.S. Bank Triple Cash Rewards Business Card, are not available to new cardholders at the time this article was updated. The Wells Fargo Business Platinum card is also often recommended for low-rate balance transfers, but the intro APR currently applies to purchases and not to balance transfers. 

One place to check if you’re looking for a low-rate balance transfer is with your current credit card issuer. Look on the “promotions” tab in your online account or call your issuer.

PNC Visa® Business Credit Card

If you’re looking for a small business credit card with an intro APR period and a low standard interest rate, check out the PNC Visa® Business Credit Card. Not only does it offer 13 months of 0% APR financing on balance transfers, it also features a standard APR of 14.24% to 24.44%, based on creditworthiness. Qualifying transfers must be completed within 90 days of account opening. 

And unlike most credit cards with an introductory offer for balance transfers, it doesn’t offer a rewards program. However, it does offer an optional feature called Cash Flow Insight® which analyzes your business spending and helps you plan and budget for future business needs. Best of all, there’s no annual fee for this card.

*All information about the PNC Visa® Business 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.

What is a Credit Card Balance Transfer?

A credit card balance transfer is when you use one credit card to pay off all or part of the balance of another card. This effectively transfers the balance to the new card. A consumer or a small business will typically perform a balance transfer in order to take advantage of a lower interest rate, which is often a 0% APR promotional financing offer. Their goal will be to save money on interest charges while paying off their outstanding balance sooner.

However, there is a cost. Balance transfer offers will almost always incur a balance transfer fee of 3% to 5% of the amount transferred, which gets added to the new balance. 

How Do Business Credit Card Balance Transfers Work?

A business credit card balance transfer works just like a balance transfer with a personal credit card. 

The account holder can go online or contact their credit card issuer to request a balance transfer from an existing credit card account. The credit card issuer that the business owner is transferring the balance to will issue a payment to the account that the balance is being transferred from. 

There will also be a balance transfer fee added to the account balance immediately. (It is charged on the account to which you transfer the balance. This fee is usually 3% to 5% of the amount transferred depending on the balance transfer offer.

The introductory rate will usually last for a limited time, often 9—12 billing cycles and sometimes longer. Once the introductory period is over, any remaining balance will incur interest, often at a much higher variable APR. 

Balance transfers do not earn perks like cash back rewards or travel rewards though the card may offer rewards for new purchases. Instead, the primary benefit is the lower cost.

When is a Balance Transfer a Good Idea?

Credit card offers with 0% intro APR offers for balance transfers can be valuable, but they aren’t for everyone. 

First, the balance transfer fee of 3% to 5% isn’t worth paying if you could simply pay off your balance in a month or two. 

These offers are also a good idea for those who have excellent credit and can qualify for the best balance transfer credit cards, and receive a large line of credit. 

You should also consider the value of a rewards credit card with a generous sign up bonus, rather than opening a new account with a card with a 0% balance transfer APR. (Though there are a number of business credit cards that offer 0% intro APRs for purchases plus welcome bonuses.)

Does a Balance Transfer Affect Your Credit Score?

The fact that you used balance transfer won’t directly affect your credit scores. But it could have an indirect impact, positive or negative.

Debt utilization (or debt usage) is an important factor in credit scoring models. High utilization can affect your credit scores. The card you pay off or pay down with the transfer can benefit from lower utilization. But the card you transfer to may have higher utilization and that can impact your credit scores.

Most business credit cards don’t report to personal credit unless you default, so the impact to your personal credit should be minimal.

What to Consider Before Doing a Balance Transfer

When done right, a business credit card balance transfer can save you hundreds, if not thousands, of dollars in interest. But if you’re not careful, it could end up costing you more. Here are some things to keep in mind before setting up a balance transfer:

Know the APR

For large transferred balances, it may be impossible to pay off the entire credit card debt before the introductory APR promotion ends. If you don’t finish it off in time, you’ll get hit with interest charges again on your next billing cycle. The lower that rate after the intro offer, the better.

Warning: You may see references online to best business credit cards for balance transfers that feature 0% APR for purchases, but the balance transfer rate is much higher. Always check the full terms and conditions before you apply.

Have a Plan 

Credit cards don’t have fixed monthly repayment terms like small business loans do, and the minimum payment due each month is typically just 1% or 2% of your balance. If you pay just that minimum, it can take you years to pay off the debt (far longer than that introductory rate lasts), and you could pay hundreds more than you needed to in interest alone. 

Pay more than the minimum due each month and try to pay off your debt before the intro rate expires so you can minimize interest costs. Ideally, you should be able to pay off the entire transferred balance before the welcome offer ends.

Do the Math

With a balance transfer fee of around 3% of the transfer amount, it may cost you hundreds of dollars just to move your credit card debt. But if you’re planning to pay off the balance in just a few months, that fee could cost you more than the interest rate you were paying on your original card. Compare how much you’re paying in interest with the amount you’ll pay if you transfer.

Beware of Fees

Credit cards may carry fees, like cash advance fees or foreign transaction fees, that can quickly eat a hole in your budget. While being able to access cash from your credit card at an ATM may be convenient, cash advance fees are often high. You may want to consider other options that may be more cost-effective, like small business loans.

Focus on Financial Health

A balance transfer card can help you pay down debt, but it won’t provide a solution for the reasons you got into debt in the first place. Take a look at your cash flow and determine what caused you to rack up business credit card debt. Then find a way to address those problems in other ways, such as reducing business expenses, increasing revenue, or looking for cheaper business financing options.

Keep an Eye on Your Credit

How much debt you have on your credit card compared against your credit limit, as well as whether you make your payments on time each month, may impact both your personal credit scores and business credit scores. Keep an eye on your scores as well as your credit reports so that, should you decide to apply for a business loan down the road, you have good options available.

Best Business Credit Cards with 0% Intro APRs for Purchases

If you can’t find a card with a 0% APR for balance transfers, you may still be able to benefit from a card with 0% APR on purchases. Here are some of the best offers currently available: 

The Blue Business® Plus Credit Card from American Express

Capital One Spark Cash Select for Good Credit

Ink Business Cash® Credit Card

Ink Business Unlimited® Credit Card

The Bottom Line

If you have a credit card balance, a small business balance transfer credit card can make your life a whole lot easier. What’s more, the best credit cards also provide other benefits that make them worth holding onto long after the promotional period ends. 

As you look for the right card for your business, shop around. Compare these and other top business credit cards to ensure that you get the features that will best help you and your business.  

Once you get the card, request the balance transfer as quickly as possible to maximize the 0% APR promotion. By aggressively paying down your new balance,  you can avoid dealing with high interest rates again after the promotion ends.

FAQs About Business Card Balance Transfers