What exactly is a small business credit card?
Small business credit cards work just like any other credit card: buy stuff now, pay for it later. But they also have features just for small business owners—things like travel rewards points, bonus rewards for business purchases, and ways to track and manage spending.
Why should you get a small business credit card?
1. Keep your business expenses separate
The most obvious benefit of having a dedicated business card: keeping your business expenses distinct from your personal expenses. It means at tax time you won’t have to spend hours sorting everything into business and personal buckets for your accountant.
2. Track and manage your expenses
There are few tasks more tedious than tracking expenses. Fortunately some cards have associated apps that let you tag purchases as you make them and even attach a picture of your receipt. These features, along with integration with bookkeeping software, make monthly tracking (not to mention tax time!) that much easier.
Many small business cards also make it simple to issue employee cards, as well as to monitor and limit the spending on them. Bonus: you’ll earn rewards that you’d miss out on if employees used their own cards.
3. Cover the cash flow crunch
Credit cards can save your butt in a cash flow crunch. Like when you have to pay the bills today, but your invoice won’t get paid until the next billing cycle.
In that case, you could pay the bills with a credit card today, and pay it off next week when you get paid. Business credit limits are way higher than personal credit cards (usually starting around $50,000 or more). And a credit card is easier to get than a line of credit.
Some business cards come with flexible payment terms or introductory offers, such as 0% APR financing for one year after account opening—which means you may not need to pay interest for a year or more. If you know you can pay off a large purchase within the introductory period, it amounts to a free loan.
4. Bask in the rewards
Banks are competing for your business, which means business cards often have killer perks.
Some rewards programs help you earn points faster, including welcome offers and bonus rewards on big purchases or in spending categories like office supplies, plane tickets, Facebook advertising and office WiFi.
Others can make travelling easier, letting you speed past security lines, relax in airport lounges, or get free hotel stays or upgrades.
And, of course, there are cashback rewards cards, which earn you money that goes back on your card or directly into your bank account.
5. Build credit for your business
It may not be as sexy as travel perks, but having a good credit score has real-life impact. Paying your credit card bill on time each month is the most important factor in building credit—which, in turn, determines whether your business qualifies for loans, good vendor terms, office or equipment leases, and low business insurance rates.
6. Get automatic insurance on things you buy
You take on enough risk as a business owner. Having a business credit card can reduce it in at least one area. When you pay for things on your business credit card, they’re often automatically protected against things like theft and damage. Sometimes you even get an extended refund or warranty period. This comes in handy for big purchases like laptops or equipment for your business.
Many cards also carry insurance for trip cancellations, delays, accidents, lost and delayed baggage, and car rentals. One less thing to think about.
Types of cards
You might use the terms “corporate card” and “business card” interchangeably, but they are actually quite different: small business cards are issued to a specific individual—usually the business owner—who provides a personal guarantee. Corporate cards are issued to big corporations; the corporation, rather than an individual, is on the hook if they fail to pay.
We’re rooting for you to one day reach corporate card status (if it’s in your long term plan), but in the meantime, you have a couple alternative options as a small business owner: a credit card or a charge card. Here’s a breakdown of the key differences between the two:
2023’s best small business credit cards
Haven’t got the time to spend hours on Google comparing credit card offers? Here are a few of the best small business credit cards according to reviews.
Best small business credit card for cash back
1. Chase Ink Business Cash Credit Card
- Sign up bonus: $750 bonus cash back if you spend $7,500 in three months
- Earn 5% cash back on the first $25,000 spent at office supply stores and on internet, cable and phone services each year; 2% cash back on the first $25,000 spent at gas stations and restaurants each year; 1% cash back on all other purchases
- 0% introductory APR for 12 months on purchases and balance transfers
- Employee cards at no additional cost
- No annual fee
2. Capital One® Spark® Cash Plus
- Earn 2% cash back on all purchases so you don’t have to remember bonus categories
- Earn up to $1,000 bonus cash back in the first six months if you spend over $50,000 ($500 when you spend $5,000 in the first three months and $500 when you spend $50,000 in the first six months)
- Employee cards at no additional cost
- No annual fee
Best small business credit card for travel
3. Chase Ink Business Preferred Credit Card
- Sign-up bonus: 100,000 points if you spend $15,000 in the first three months
- Earn 3 points per dollar on the first $150,000 spent on travel, shipping, social media advertising and internet/cable/phone services each year; 1 point per dollar on everything else
- Points can be redeemed by transferring them to many different airline and hotel partners
- Employee cards at no additional cost
- $95 annual fee
4. The Business Platinum® Card from American Express OPEN
- Sign-up bonus: 120,000 points if you spend $15,000 in the first three months
- Earn 5 points per dollar on airfare and prepaid hotels booked through American Express Travel; 1.5 points per dollar on purchases over $5,000; 1 point per dollar on all other purchases
- A host of cash back bonuses at Dell, Indeed, and Adobe
- $595 annual fee
- Note that this is a charge card, requiring you to pay the full balance each month
Best small business credit cards for hotel stays
5. Marriott Bonvoy Business American Express Card
- Annual fee: $150
- Sign-up bonus: 70,000 Marriott Bonvoy points if you spend $5,000 within the first three months of opening an account
- Earn five points per dollar spent at select Marriott Bonvoy hotels; three points per dollar spent at US restaurants and gas stations, on US shipping purchases, or for US mobile service; and two points per dollar for other eligible categories.
6. The Hilton Honors American Express Business Card
- Annual fee: $95
- Sign-up bonus: Get 130,000 Hilton Honors points when you spend $2,000 within your first three months of signing up.
- You earn 12 points per dollar spent at hotels and resorts within the Hilton portfolio, and six points per dollar on select business and travel purchases. On all other eligible purchases, you earn three points per dollar.
- As a cardholder, you get Hilton perks, such as late checkout, continental breakfast, free wi-fi, and room upgrades.
Best small business credit cards for fair credit
7. The Capital One® Spark® Classic for Business
- Annual fee: $0
- For average to fair credit scores—580 or higher.
- A relatively high interest rate, at 24.74% variable APR
- Late payment fees can cost up to $39
- Earn 1% cash back on all purchases
Best small business credit card for 0% APR
8. The US Bank Business Platinum Card
- Get 0% APR on all purchases and balance transfers for the first 12 months
- After that, it’s a 11.99% – 19.99% APR (variable rate)
- Regular balance transfer fee is 3%
- $0 annual fee
9. The Blue Business®️ Plus Credit Card from American Express
- Get 15,000 membership reward points after you spend $3,000 on eligible purchases in the first three months
- 0% APR introductory offer for the first 12 months
- Regular 14.74% – 20.74% APR (variable rate)
Best small business credit cards for balance transfers
10. U.S. Bank Business Cash Rewards World Elite™ Mastercard®
- Get 0% APR on purchases and transfers for the first 15 months
- Regular APR is 13.99% - 24.99% (variable)
- $0 annual fees
- Introductory offer: Get $500 back if you spend more $4,500 or more on eligible purchases within the first 150 days of opening
- Must have excellent credit to apply
11. Chase Slate®
- Get 0% APR on purchases and transfers for the first 15 months
- New cardholders earn $100 in statement credit after you spend $500 in the first month
- $0 annual fees
- Regular APR is 14.99% – 23.74% (variable rate)
- No introductory offer
- Must have good or excellent credit to apply
Best small business credit card for specific airlines
12. Southwest Airlines: Chase Southwest Rapid Rewards Premier Business Credit Card
13. United: United MileagePlus® Explorer Business Card
14. Delta: Gold Delta SkyMiles® Business Credit Card from American Express
15. American Airlines: CitiBusiness AAdvantage Platinum Select World Mastercard
Avoid these common pitfalls
Read the terms and conditions
You know that small print? The text that makes your eyes glaze over? In this case it actually matters. Business credit cards aren’t regulated by the consumer protections offered under the federal Credit CARD Act of 2009—so keep an eye out for changing interest rates, due dates, or fees.
Pay your balance (yes, every month)
Avoid a world of pain by diligently paying off your card each month. Penalty fees on charge cards and interest on credit cards will quickly eat into your bottom line—unless, of course, you’re still within an 0% introductory APR period. That said, if you do end up paying interest for a balance on a business credit card, you can claim it as a business expense on your taxes.
Carrying a balance will also hurt your business’s credit score, which will hurt your ability to secure financing in the future. It can also hurt your personal credit score. Though some issuers only report seriously sketchy activity to consumer credit bureaus, others (like Capital One), report all business credit activity.
Manage employee cards
If you’re giving cards to employees, only give them to people you trust, who have frequent expenses.
Set some simple, clear rules around spending. What’s the limit on meals? Hotel rooms? If employees have alcohol with a meal, can that go on the card as well? The policy can be different depending on the needs and seniority of the employee, but it should always be written down—and each card-holding employee should sign it.
Some cards will trigger a text or email each time an employee makes a purchase (or a certain type of purchase). Others will allow you to cap expenses on individual cards—like limiting gas to $50 per day. Regardless, you or your accounting department should review each statement and quickly pull cards from employees with any suspicious activity.
