There are many funding options available to business owners, but the most common are business credit cards, business loans, or gifting. When seeking a line of credit, always consider the cost to borrow and weigh the pros and cons. If the APR is unmanageable, it’s definitely not wise to accept the loan or you could risk losing your business.
Using a designated business credit card to help with business expenses is a good idea if you can’t get a business loan with a better APR than a credit card, or, you can’t borrow money from friends or family. Utilizing this separate funding vehicle also helps to differentiate between business and personal expenses, which is something every business owner should do. Four reasons it’s a good idea to open up a business credit card include:
- Building Credit – Although your personal credit score is pulled when applying for a business credit card, it’s still important to establish and build a business credit score for the business.
- Earning Rewards & Perks – Business credit cards have excellent rewards programs. In fact, there’s only one business credit card on the market that offers not-so-great perks, but the vast majority of them are loaded with reward earning potential (cash back, miles, and points) and program perks, like year-end statements.
- Streamlined Finances – As noted above, it’s essential to keep your business and personal finances separate. Many business credit cards allow you to link your account information to your accounting software.
- Employee Credit Cards – Another perk that comes with business credit card programs are employee credit cards. Many banks offer them for free, while others charge a small fee to issue new cards.
What’s great about opening a business credit card at the start of a new year is that many banks are offering 0% interest rates on purchases and/or balance transfers. You certainly can’t take out a loan at 0% interest, so this is a win-win especially if you can pay off the balance within that first year.
4 Business Cards to Consider for Your Business
There are way too many business credit cards on the market to choose just one, so we narrowed the list down to the top few that are currently offering 0% intro APR.
Chase Ink Business Cash Credit Card –This is the only credit card on our list that offers 0% intro APR for 12 months on both purchases and balance transfers. Rewards come in the form of cash back, earning 5% back on office supply store purchases and on cellular phone, landline, internet and cable TV services; 2% back on gas station and restaurant purchases; and 1% back on all other purchases.
Additional perks: No annual fee and a sign-up bonus of $300 after you meet spending requirements in the first three months of card ownership.*
SimplyCash Plus Business Credit Card from American Express – This card comes with 0% intro APR on purchases for the first nine months and earns rewards in the form of cash back. Purchases on wireless phone services (in the U.S.) and U.S. office supply stores can earn 5%, 3% can be earned on purchases in a category of your choice (choose from 8 options), and 1% cash back can be earned on all other purchases.
Additional perks: No annual fee and the chance to earn up to $500 cash back as statement credits after meeting purchase requirements.*
Capital One Spark Miles Select for Business – This business card offered by Capital One is pretty straightforward. You’ll get 0% intro APR on purchases for the first nine months and earn 1.5 mile per dollar spent on all purchases with no cap on the number of miles you can earn. The Capital One Spark Cash Select for Business is a very similar card, but rewards are offered in the form of cash back instead of miles.
Additional perks: Pay no annual fee and earn a sign-up bonus of 20,000 miles after meeting purchase requirements.*
Bank of America Travel Rewards World MasterCard for Business – Another straightforward card, this travel rewards card earns 1.5 points on all purchases and comes with an intro APR of 0% for 9 months. The Bank of America Cash Rewards for Business MasterCard is another very similar credit card, but rewards come in the form of cash back.
Additional perks: Pay no annual fee and earn a sign-up bonus of 25,000 points after meeting purchase requirements.*
It can be confusing choosing the best business credit card for you and your business. Just remember that the best business credit cards will have low carrying costs (minimal fees & charges), offer a rewards program, free employee credit cards, and come with added tools and benefits to help you run your business. As an added tip, be sure to check the credit score requirements for the specific card you’re looking at, compare your options, and read the fine print to make an educated decision before applying.
*Check the credit card terms and conditions for limitations.