Best business credit cards for startups or For individuals who are still unable to get approved for a small business loan, business credit cards might be an excellent source of capital for businesses. The best business credit cards for new businesses are those with cheap annual fees, 0% promotional APR periods, abundant initial and continued perks, and low ongoing annual percentage rates (APRs). It’s essential to take into account these elements, as well as any other features your business might want when choosing the best card for you. You may get the resources you need to develop and be successful as a company with the aid of a business credit card. While your small business is getting off the ground, having a business credit card for startups helps ease your cash flow. For entrepreneurs, nevertheless, is it possible to obtain a business credit card?
That is a yes-or-no question. Additionally, using a business credit card may benefit your credit score and reward you for your expenditures. Let’s look at some of the top business credit cards for new enterprises, entrepreneurs, and startups.
Top 11 Best Business Credit Cards For Startups At a Glance
The best business credit cards for startups and small businesses are as follows:
#1. AMAZON BUSINESS PRIME AMERICAN EXPRESS CARD
One of the best credit cards for business owners who don’t want to carry a load but simply need a little more time to pay off purchases is the Amazon Business Prime American Express Card. The caveat, as you would infer from the name, is that you can only do so if you make purchases from Whole Foods Market, Amazon.com, or Amazon Web Services.
You have 90 days to pay off those items if you select this option. Alternatively, if you’d rather not wait until the end of the day to pay, you can opt to receive 5% cash back on such transactions. Whichever option you select, you’ll also receive limitless 2% cash back on non-Amazon purchases from eateries, petrol stations, and wireless service providers. Every other purchase you make will result in an infinite 1% cash back. The statement credit that can be obtained from points never expires. One of the best business credit cards for startups and small businesses.
You will get a $125 Amazon gift card when you apply for this business credit card. Remember that to be eligible for this card, you must continue to be an Amazon Prime member ($60–$139/year). This card can be an affordable option for your small business if you currently purchase at Amazon or use Amazon Business or Amazon Web Services. Also, if your business is growing, this card may give you the financial flexibility you need by letting you pay for purchases over 90 days without worrying about interest costs.
#2. BREX CORPORATE CARD
The Brex Corporate Card, which offers up to 8x points, is the best small business credit card for rewards.
The spending category your purchases fall under and the payment options you select will both affect the rate you earn. Taxis and ridesharing apps earn up to 8x points; travel earns 5x points; dining earns 4x points; recurring software purchases and Apple items earn 3x points, and all other transactions earn 1x points. You must, however, pay off your card each day in order to receive those prices. One of the best business credit cards for startups and small businesses.
You may exchange points for gift cards, statement credits, or trips. Additionally, to be eligible for the Brex card, your company must have $100,000 in cash on hand or $50,000 in managed accounts. The Brex card is exclusively offered to C-Corps, S-Corps, LLCs, and LLPs.
Brex also provides special signups for a number of tools and products that should appeal to small business founders, such as QuickBooks, Apple, Gusto, Slack, and Amazon Web Services. Users of Brex also have access to tools for spend management that enable you to track spending, issue staff cards, and match receipts. Brex Cash, a product that goes with this business credit card for startups, offers business banking services in the form of an FDIC-insured business checking account with no minimum balance requirements and free ACH and wire transactions.
#3. AMERICAN EXPRESS BLUE BUSINESS CASH
The American Express Blue Business Cash Card is the best business credit card with a low APR, and it also offers customers the ability to carry debt as their businesses expand. For the first 12 months, you won’t have to pay any interest on purchases. The APR then increases to a variable rate between 13.49% and 21.49% after that. This credit card’s 0% introductory rate might result in big savings if you must carry a load while your business is getting off the ground. One of the best business credit cards for startups and small businesses.
The great welcome bonus of $250 cash back as a statement credit when you spend $3,000 in the first three months adds to the savings. That’s not all, either. On your first $50,000 in annual qualified travel and retail expenditures, you’ll get recurring benefits of 2% cash back. Beyond that point, your earnings rate drops to a respectable 1%.
Your account will be automatically credited with cash back. And there are no yearly fees associated with using this card.
#4. RAMP CORPORATE CARD
A fairly simple cash back rewards program is available with the Ramp business credit card. All purchases will earn you 1.5% cash back, which is really good for a business card. With a range of expenses, startups and small companies stand to gain from this rewards program. One of the best business credit cards for startups and small businesses.
In addition to the 1.5% cash back, Ramp provides tremendous partner benefits and savings totalling over $175K. Here, the $50,000 in segment credits and priority access to AWS credits stand out.
Ramp’s algorithm-driven savings insights are its greatest distinctive advantage. Ramp examines your company’s expenditure patterns to identify areas where you may reduce expenses and make savings. For example, you might think it would be a good idea to combine the same Dropbox memberships that different corporate departments have bought.
#5. CHASE INK BUSINESS CASH
Because it combines the best set of essential features—a sizable welcome bonus, an introductory 0% APR, a respectable rate of rewards, and no annual fee—we think of Chase Ink Business Cash as the best overall business credit card for startups. Overall, there aren’t many credit cards that are more suited to the requirements of entrepreneurs than Ink Business Cash.
This card offers 5% cash back on the first $25,000 spent annually in combined purchases at office supply retailers and on internet, cable, and phone services. Young firms growing into mature companies will profit from this offer. No other business card provides as much cash back for expenses related to setting up your office. One of the best business credit cards for startups and small businesses.
Additionally, you will receive 2% cash back on the first $25,000 in a combined gas station and restaurant expenditures and 1% cash back on all other transactions. Through Chase Ultimate Rewards, you may exchange your cash back for statement credits, vacations, and other things. You must spend $7,500 in purchases in the first three months of card use to qualify for the $750 cash back incentive. And you’ll particularly like the 12 months of 0% APR if your startup has to hold a load for a while while you try to get your business profitable.
#6. CHASE INK BUSINESS PREFERRED
Due to its generous bonus offer, Chase Ink Business Preferred is one of the best credit cards for new businesses. When you spend $15,000 on purchases within the first three months, you’ll receive 100,000 bonus points as a start-up bonus. You can then earn up to 3x bonus points on your first $150,000 in shipping and other business expenses like social media advertising, internet, cable, and phone service, and travel. As long as your account is active, all additional purchases will give you one point for every $1 spent. One of the best business credit cards for startups and small businesses.
If your startup involves travel, this card offers a ton of extra perks since your points are worth 25% more when you redeem them for travel through Chase Ultimate Rewards. At several airlines and hotel partners, you may exchange points for cash back or gift cards at a 1:1 ratio. There is an annual charge of $95 for this card, but you should be able to cover it with the points you earn.
#7. WELLS FARGO BUSINESS SECURED CREDIT CARD
Significantly, while it might be challenging to obtain startup funding when your credit is good, it becomes even more challenging when you have poor credit or no credit history at all. Secured business cards may help with that, and one of the best credit cards for new businesses with bad or no credit is the Wells Fargo Business Secured Credit Card. One of the best business credit cards for startups and small businesses.
You can maximize your spending while simultaneously establishing a strong credit history for your firm thanks to its versatile rewards program that allows you to select between miles and cash back.
Plus, with the Wells Fargo Business Secured Card, use your purchases to earn 1.5% of every dollar spent or opt to earn one point for every dollar spent, with a bonus of 1,000 points for each billing period that you spend $1,000 or more. After you pay a security deposit of $500 to $25,000, you may begin using the card. Your credit limit is determined by that deposit.
Even though it’s not ideal, if you’re starting a business without a reliable credit history, this provides you an opportunity to get things going while you establish the credit you’ll need for the business.
#8. CAPITAL ONE SPARK CLASSIC
The best business credit card for those with mediocre credit is Capital One Spark Classic, which is ideal for startups and business owners aiming to achieve their objectives. Despite not having many frills, the Spark Classic For Business Card has a lot going for it, including a $0 annual fee, limitless 1% cash back on all purchases with no caps or limitations, and the potential to improve and boost your business credit rating. One of the best business credit cards for startups and small businesses.
The rewards rate is respectable and better than you may anticipate with only a good credit rating, even if it is not the best we’ve seen. You may cash out your card rewards as a statement credit or a cheque. As long as your account is active, there is no minimum redemption requirement and your points never expire. Remember that this card has a high APR, which is now 27.24%, so you shouldn’t use it to carry a debt.
#9. SVB INNOVATORS CARD
One of the best business credit cards for startups with no annual charge is Silicon Valley Bank’s Innovators Card, if you’re prepared to save money by eliminating recurrent payments. Also, because it is made for new businesses, you won’t have to worry about giving a long and detailed credit history.
Because you cannot carry a balance on the Innovators Card and will be subject to a late payment penalty of up to 2.5% of your outstanding amount, it is not a genuine credit card. Your credit limit will probably be low at first, but you can expect it to grow over time as your business’s credit does.
As your business expands and you decide to add cards for your staff, there are no additional costs for you to worry about. No matter how many cards you use, each dollar you spend will result in the accumulation of two bonus points into a single pool. Redeem your points for gift cards, goods, vacations, and statement credits. You should definitely choose the statement credit right away because there aren’t many reward options.
#10. CAPITAL ON TAP BUSINESS CREDIT CARD
The best credit card for flat-rate rewards is also one of the best for startups: Every purchase made with the Capital on Tap Business credit card earns a flat 1.5% cashback. Even though the rewards rate isn’t the highest we’ve seen, it is one of the easiest to track. One of the best business credit cards for startups and small businesses.
Additionally, if you’re focused on getting your business off the ground, you might not have time to consider which spending categories provide the best reward potential. This card gets rid of uncertainty and gives you a good rate of rewards while you pay for your growing business.
The Capital on Tap credit card offers free cards for use by every employee of your business; spend tracking features; accounting software interfaces; and a $200 incentive if you make $15K in purchases during the first three months. Although there is no annual charge, you must take your creditworthiness into account when applying for this card.
If you intend to carry debt, you will be subject to an APR ranging from 9.99% to 34.99%. To put it another way, you won’t want to carry a balance for very long.
#11. US BANK BUSINESS PLATINUM CARD
The Business Platinum Card from US Bank is one of the best introductory rate credit cards for new businesses. On both new purchases and balance transfers made with this card, you will benefit from a complete 20 billing cycles of 0% interest. That’s 20 months with no interest, which should be appealing to new business owners who might have a negative cash flow while they improve their products, make a new business plan, and get more customers. One of the best business credit cards for startups and small businesses.
You may use this card without paying an annual fee, and the alluring APR is undoubtedly alluring. If you want to move money that’s already in your account, you’ll have to pay a transfer fee of 3% of the balance, but the 0% interest will probably make up for that.
The ARP will increase to 12.24%–21.24% after 20 months, depending on your creditworthiness at account opening. If you carry a balance after the promotional period, you may anticipate an APR of 29.99% if you make late payments, go over your credit limit, or incur additional penalties. What you shouldn’t expect from this card is cash back or points that can be turned into gift cards, statement credits, or travel perks.
FAQs
Business credit cards: Are hard pulls performed?
A rigorous pull on your personal credit report is necessary for business credit cards. The majority of business credit cards demand a personal guarantee, which means the principal cardholder will be responsible for any debts that the business is unable to pay. As a result, the issuer must assess the applicant’s personal creditworthiness.
How can I establish credit with my EIN?
You can open credit trading accounts with a number of businesses that provide revolving credit lines. When filling out applications, use your EIN, charge only what you require, and then pay the balance in full and on time to build good credit. Businesses like Dell, Staples, and Lowe’s frequently collaborate with start-ups.