Small Business Credit Cards have always been a great way for start-up businesses to obtain the capital they need to open the doors of their dreams. When the economy took a tumble in 2008, some of the first products to be removed from the market were these very same small business credit cards that had helped so many for so long.
Advanta was the most well known small business credit card provider and not only did they stop allowing new customers access to credit cards but they close their doors entirely because their debt was just too much. Today, there are still a handful of issuers looking to lend a hand to small businesses and while the offers are not as lucrative as they once were, small business credit cards are a great start for any new business.
PT’s Pick For The Best Small Business Credit Card
CitiBusiness® Advantage World MasterCard - The CitiBusiness® Advantage World MasterCard is as diverse as a business credit card can be. Perfect for the American Airlines traveler, this card awards 30,000 American Airlines AAdvantage bonus miles AND two Admiral’s Club Lounge one-day passes after $1,000 in purchases is spent in the first three months of card ownership. Using this card on an American flight will also get you the first checked bag (and four traveling companions bags) free of charge. Two AAdvantage miles are earned on every $1 spent on American Airlines purchases (flights, beverages etc.) and one AAdvantage mile is earned for every other dollar spent. The ongoing APR is 15.24% variable and there is a $95 annual fee; waived during the first 12 months.
Ink Cash Business Card – Before digging into the details, the biggest benefit of the Ink Cash Business Card (compare to others on this list) is that it does not charge an annual fee. Figure in those savings with the $200 up front cash bonus for all new cardholders when $3,000 is spent during the first three months and the Ink Cash Business Card becomes much more attractive. 5% cash back is earned on the first $25,000 spent annually on office supplies and utilities (internet, phone, cable TV); 2% cash back is earned at gas stations and restaurants (again on the first $25,000 spent annually) and 1% cash back earned on all other purchases.
The Enhanced Business Gold Rewards Card from American Express OPEN – A nice up-front bonus of 30,000 Membership Rewards Points awaits new customers of the Enhanced Business Gold Rewards Card from American Express OPEN when $5,000 is spent in the first three months. Also for a limited time, new members will also get a free one year membership to Amazon Prime (which among other things allows you get two day shipping on all Amazon purchased items). There is a substantial $175 annual fee; but that is waived for all first year cardholders and because this is a charge card (not a credit card), the balance needs to be paid off each and every month.
Capital One Spark Cash for Business – The card with the largest rewards tier on the board, the Capital One Spark Cash for Business dishes out 2% cash back on all purchases, all the time. Plus, there is a generous $100 cash bonus when you spend $1,000 in the first three months of card ownership (small bonus, but small spend hurdle as well). Even with all of the rewards offered, there is no annual fee the first year ($59 afterwards) and because this card is issued by Capital One, there are no foreign transaction fees (so you can use this card oversees, fee free).
Plum Card from American Express – One of my personal favorite business cards, the Plum Card from American Express OPEN offers a 1.5% discount for all purchases; so long as your balance is paid off within 10 days of the statement date. For businesses with large purchases, that kind of savings can be very substantial on a yearly basis and even though this is a charge card, the Plum Card from American Express OPEN allows members to pay within a 60 day window, interest free. There is a rather large $250 annual fee, but again that fee is waived for all first year cardholders.
Ink Bold Business Card - You won’t find a larger up front bonus than the 50,000 bonus points after spending $5,000 in the first three months from account opening the Ink Bold Business Card provides new cardholders. Five points for every dollar spent are earned office supply and utility purchases (phone, internet, cable TV) for the first $50,000 spent annually and the $95 annual fee is waived during the first year. Unlike many Chase consumer cards, the Ink Bold Business Card does not charge a foreign transaction fee; and this is a charge card, not a credit card so the full balance is due each and every month.
Capital One Spark Miles Select Card – Second verse, very similar to the first. The Capital One Spark Miles Select Card offers the same benefits as it’s counterpart, the Capital One Spark Cash for Business; except instead of cash earned, the rewards are two miles for every dollar spent. The $59 annual fee is waived during the first year and the ongoing APR for purchases and balance transfers is 13.9% – 20.9% variable. Don’t forget, any charges made across the pond will not be charged a foreign transaction fee.