As the owner of a small business, you likely use a credit card or several to purchase office supplies and pay for other everyday expenses. Small business credit cards are a great way to get short-term financing when every dollar matters and you want to prioritize savings because they offer generous reward rates and sign-up bonuses. Additionally, choosing the right credit card for your small business can help you establish or improve your credit worthiness and help your business grow. Below is a list of some of the best credit cards in the 2016 market.
Ink Cash Business Credit Card: Best for Cash Back Rewards and Low Interest
This card from Chase offers a sign-up bonus of $300 cash back when you spend $3,000 in transactions within the first three months of opening the account. You also get 5 percent cash back on up to $25,000 in purchases when you buy office supplies and cellphones as well as pay for cable television, internet and landline phone services. The rewards program also offers 2 percent cash back on restaurant and gas station purchases with the same spending limit. On everything else that you buy, you earn 1 point for each dollar with no spending limit. For the first 12 months of your account being open, there’s no interest on purchases and balance transfers. After that, you’ll have a variable annual percentage rate between 13.49 and 19.49 percent. Furthermore, there’s no annual fee.
Spark Cash for Business: Better Sign-Up Bonus and Unlimited Cash Back
This Capital One credit card offers a sign-up bonus $500 when you spend $4,500 within the first three months of account activation. Its rewards program offers 2 percent cash back on every purchase, and there’s no spending limit. If you charge just $300 a month with the card, you’ll earn $72 a year in cash back. This more than recoups the $59 annual fee, which is waived for the first 12 months. When you spend $1,000 a month, you get $240 in cash back for the year. The rewards can pile up fast, and they don’t expire. You can also redeem any amount of the cash back whenever you want. Spark Cash includes Visa Business Benefits as well, including purchase security and extended protection.
Ink Plus Business Credit Card: Best for Rewards
As another small business credit card from Chase, this one features a point-based rewards system that some business owners may find more beneficial than the Ink Cash card. When you spend $5,000 within the first three months of opening your account, you can earn 60,000 bonus points. After that, you earn five points for every dollar up to $50,000 when you buy office supplies and cellphones as well as pay for cable TV, internet and landline phone services with the card. You earn two points per dollar with the same spending limit on hotel accommodations and gas station purchases. For all other purchases, you earn one point per dollar with no spending limit. Each point is valued at 1.25 points when redeeming through Chase Ultimate Rewards, which makes the rewards go further. However, there’s a $95 annual fee.
Also from Capital One, this is one of the few credit card options for small business owners who don’t have excellent credit. The card allows you to earn 1 percent in cash back for every purchase, and there’s no annual fee. Capital One will provide quarterly and yearly itemized statements that help you track business deductions. However, it comes with a relatively high variable APR of 23.24 percent. If you plan to use this card, you’ll want to do your best to pay off the balance every month to avoid spending extra on interest. Being responsible with this small business credit card can help you rebuild your credit over time so that you eventually qualify for lower-interest cards.
SimplyCash Plus Business Credit Card: Most Flexible Business Credit Card
American Express offers a $250 credit on your statement after you spend at least $5,000 within the first six months of account activation with this card. Its cash-back rewards program features 5 percent cash back on office supplies and wireless phone services with a spending limit of $50,000. You can also earn 3 percent cash back on up to $50,000 in purchases across a range of categories. Additionally, SimplyCash Plus is part of the Amex Open family of cards, so you can enjoy discounts of up to 5 percent, potentially allowing you to earn up to 10 percent in rewards.
These are only a few of the small business credit cards that have benefited business owners in 2016. Compare these and more to find a card that best fits your business spending needs.