Best Credit Card for Small Business
Every small business owner has many concerns in common with his contemporaries. “Payrolls and taxes are too high,” “the economy is too uncertain,” “suppliers = the enemy,” and “expenses are killing my cash flow!” Some of these problems are far too large to get into here, but there are some good solutions to solving your cash flow issues.
Whether you only need to cover occasional expenses, or if you need a revolving line of credit for your expenses, finding the best credit card for small business can be a bit of a challenge. Your primary problem will not be in finding offers, but in choosing among them to find the right card for your own needs. It is important to first identify where most of your problematic expenses are coming from. Air fares, fuel costs, advertising, office supplies, and telecommunications costs are some of the largest expenses that many business owners face. There are credit card options that can help with all of these expenses and more.
In which area does your business need help?
For example, if your primary expense is travel, many cards offer excellent options for rewards that can immediately reduce expenses. With Capital One Venture, one dollar spent is equal to 2 air miles. Business Gold Rewards from American Express OPEN gives 3x points as air miles. If you hold the Starwood Preferred Guest Business Card from American Express OPEN, you get one mile per reward point, but there are no blackout dates, and the points are good on 350 airlines.
Here is a synopsis of the current offers for the best credit card for small business owners:
Plum from American Express OPEN is great for businesses that need the grace period to be longer. This card, with no preset spending limit, requires payoff in 60 days after purchase. The benefit is most important to those who may need to make a purchase, but need to then collect from their customers to pay. Limitations on this card are that your business must have been in operation for at least two years, and the card carries a $185 annual fee.
Simply Cash from American Express offers a wider array of rewards that can be beneficial to many. Considering the high cost of telecommunications, using this card gains you 5% rebates (applied directly to your next statement) on wireless services and on office supplies. A further 3% rebate is given for gasoline purchases, and the card has no annual fee. The Ink Card from Chase is similar, but the 5% category also includes cable television costs. The Chase card only pays 2% rebates for gasoline, while adding dining costs to the 2% category.
The best deal out there may be the Business Gold Rewards card from American Express OPEN. To be clear, this is a charge card instead of a credit card and must be paid in full monthly, so if cash flow is your main concern, this may not be the card for you. Business owners looking for the best overall rewards package, by contrast, will be interested to see 3x points for airfares, coupled with 2x points for spending on advertising, gasoline, and shipping costs.
As you can see, once you’ve decided where to claim the rewards, the search is much easier. There is definitely a card on offer that fits your business. Learn more about Business Credit Cards.