While the bonus is lower than what other lenders offer (you receive a $500 bonus with the Capital One Spark card when you charge $4500 within the first 90 days), you are also not under any obligation to make any purchases within a narrow window either. It makes the reward more universal for businesses.
5% cashback rewards at select retailers
American Express also incentivizes other purchases made by companies. You receive 2% cashback on all expenses related to restaurants, cell phone suppliers, and gas stations. For all other purchases, you receive 1% back. There are no spending caps on the 2% or 1% cashback incentives.
Flexible repayment terms
American Express offers flexibility in how you finance your expenses. You can either take advantage of the 5% cashback incentive or a 90-day interest-free repayment window. If you plan to make larger purchases, this option gives you more wiggle room in your budget to finance them without any added expense. While you will not earn the cashback rewards, you also do not have to worry about paying interest either, which can range from 18.49% to 26.49%.
Easy management tools
Moreover, there are account management tools to make your life easier. The Account Manager is like your personal assistant who can make payments, request more cards for employees, and review transactions. It is a time-saver for those juggling multiple hats within their company.
It does not offer a low, long-term introductory rate
Many business credit cards entice companies with an introductory rate. The Chase Ink Business Cash card offers borrowers a 0% APR rate for the first 12 months of purchases, then 17.74% - 23.74% variable APR.. It is a generous repayment window, allowing companies more time to finance their expenses without interest fees. Sure, American Express does offer a 90-day interest-free option, but it is much shorter in scope, and you forfeit your cashback rewards to use it. With other credit cards, you receive a low introductory incentive and a cashback bonus. So, if finances are tight and you need more time to repay expenses in full, this card might not be the smartest option.
Limited cash back categories
However, you also miss out on the cashback rewards. It is a wise option for companies requiring a little more time to repay the balance in full.
Chase Ink Business Cash card
This card offers a generous APR on all purchases and balance transfers. Your business can also earn 5% back on the first $25 000 spent on office supplies, home internet, cable, and phone expenses. Chase also offers a $900 bonus when your business charges $6,000 within the first three months of opening the account.
Capital One Spark 2% Cash
This business credit card touts simplicity in cashback bonuses. Instead of going through categories, where you might earn more incentives for some purchases over others, Capital One gives you 2% back on all expenses made with the card. There are no minimums, spending caps, and your rewards never expire. Your business can maximize rewards by spending $4500 within the first three months of opening the card, entitling you to a $500 bonus.
