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Compare Business Credit Cards in September 2023
Capital One Spark Miles for Business
- Earn unlimited 2X miles per dollar on every purchase, everywhere, no limits or category restrictions, and miles won’t expire for the life of the account
- Unlimited 5X miles on hotels and rental cars booked through Capital One Travel
- Transfer your miles to 15+ travel loyalty programs
The Business Platinum Card® from American Express
- Get 5X Membership Rewards® points on flights and prepaid hotels on amextravel.com, and 1X points for each dollar you spend on eligible purchases.
- Earn 1.5X points (that’s an extra half point per dollar) on eligible purchases at US construction material & hardware suppliers, electronic goods retailers and software & cloud system providers, and shipping providers, as well as on purchases of $5,000 or more everywhere else, on up to $2 million of these purchases per calendar year.
- Unlock over $1,000 in annual statement credits on a curation of business purchases, including select purchases made with Dell Technologies, Indeed, Adobe, and U.S. wireless service providers.
Benefits of Business Credit Cards
Using a business credit card can provide several benefits for business owners. Here are five common advantages of utilizing a business credit card:
Separation of Business and Personal Expenses
A business credit card allows you to keep your business and personal expenses separate. This separation makes it easier to track and manage your business finances, simplifies tax reporting, and helps maintain accurate records for financial and accounting purposes.
Improved Cash Flow Management
Business credit cards provide a revolving line of credit, giving you access to funds for business expenses when needed. This flexibility can help manage cash flow fluctuations, bridge gaps between revenue and expenses, and provide working capital to support your business operations.
Expense Tracking and Reporting
Business credit cards often come with robust expense tracking tools and detailed monthly statements. These features make it easier to monitor and categorize your business expenses, simplifying record-keeping, budgeting, and financial analysis. Additionally, some business credit cards offer integration with accounting software, streamlining your financial management processes.
Rewards and Perks
Many business credit cards offer rewards programs tailored to business spending. These rewards can include cash back, travel rewards, discounts on business expenses, or points that can be redeemed for various benefits. Taking advantage of these rewards can help offset business expenses or provide additional perks, such as travel insurance or access to airport lounges.
Building Business Credit
Using a business credit card responsibly can contribute to building and improving your business credit profile. Making timely payments and managing your credit utilization can establish a positive credit history, which may be beneficial when seeking financing or negotiating favorable terms with suppliers in the future.
It’s important to note that while business credit cards offer benefits, responsible usage is crucial. Paying off the balance in full each month, monitoring spending, and being mindful of interest rates and fees are essential for maximizing the advantages and avoiding unnecessary debt. Carefully comparing different business credit card options to find one that aligns with your business needs and offers favorable terms is also recommended.
Frequently Asked Questions (FAQ)
How to get a business credit card?
There are plenty of cards to apply for, but make sure you narrow your research to business credit cards only.
So, why not go for a personal credit card?
There are a few differences between personal and business credit cards. Most notably, business spending limits are generally higher than personal credit lines. This is vital because you need the capacity to place large orders with vendors.
The second difference is rewards and perks. Business credit card rewards programs are far more appealing to entrepreneurs.
Here are the best business rewards to look for:
- Travel rewards
- No calendar year credit card fees
- Cashback rewards
- Cashback bonuses
- Gas Station rewards
- Hotel and lodging points
- Office Supply Store rewards
- Substantial credit limit
How do I apply for a business credit card?
Your next step is to apply for a business card. If you want to make the approval process as easy as possible, gather all your required documents before reaching out to a credit card issuer.
Have the following items handy as you apply:
- The legal name of your company
- All of your company’s contact information
- Tax identification number (EIN)
- Social Security Number (for a sole proprietorship)
- Your company’s industry
- Yearly revenue and profit/ cash flow
- Annual company expenses
You’ll also need to present the credit card issuers with your personal financial information. Perform a personal and business credit score check before applying. Financial institutions will look at this information to gauge if you’re worth the financial risk.
One problem new entrepreneurs run into is a lack of credit score or credit history. If you have zero credit history, start building your personal and business credit now. This can help you get approved for a business credit card faster.
New or aspiring business owners should look into the Capital One® Spark® Classic for Business. This card is excellent for building a credit score since only “fair credit” is required for an account opening.
What should you look for in a business credit card?
There are several reasons why a small business owner may want a credit card, which dictate what you’ll look for. If you’re primarily looking for a means of finance, then you’ll want to consider cards that offer an interest free introductory financing offer for new purchases. But if your goal is to earn rewards, go for a card that features the most valuable points, miles, or cash back for the kind of spending you’ll do. Finally, business travelers should look for perks and benefits, such as airport business lounge access.
How do small business credit cards differ from consumer cards?
Most credit card issuers offer cards specifically designed for small business users. But the differences between these cards and consumer cards aren’t as great as you might think. For example, you apply for a small business credit card with your personal credit history and credit score. And when you’re opening an account, you’re personally guaranteeing repayment of your purchases.
Small business credit cards are exempt from many of the consumer protection provisions of the CARD Act of 2009, but most major card issuers have chosen to voluntarily have their small business cards comply with the law. Beyond that, a small business credit card can offer rewards on the kinds of purchases that small businesses are more likely to make, such as office supplies and telecommunications services. A small business card could also come with expense tracking and reporting features that you won’t find on your personal cards.
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