Although the US saw 2020 consumer spending driven down in the early months of the pandemic, spending numbers are rising once again. Businesses are beginning to bounce back. Startups and experienced businesses alike are adapting to changes and digital trends of the new economic climate – a large portion of spending and investments will be used to cater to it.
Business credit cards are one avenue being used by businesses to keep up with trends. Let’s look at some of the best business credit cards available to you today.
However, if you’re looking for standard cards, check out this comprehensive list of the best credit cards.
At a glance:
Higher credit limits, 10-20x higher limits than other traditional competitors. No startup fees, annual fees, or interest. Instead, Brex receives small fees from merchants for each purchase you make. No personal guarantee with Brex – meaning you, as an individual, won’t have to take on the liability of business debt. However, Brex does require a minimum amount of money to be available in a linked bank account to qualify. Rewards are plentiful. Brex users can earn points on purchases, depending on the spending category. For example: 8x on rideshares, 5x on Brex travel, 4x on restaurants, 3x on recurring software, and 1x on all other purchases. Unlimited users and cards are available for employees, with the option to set limits.
At a glance: At a glance:
New members will enjoy a one-time $500 cash bonus when they spend $4,500 on purchases made within the first three months. Cashback rewards. Members get unlimited 2% cashback rewards on net purchases. There is no cap, and these rewards can be redeemed with a credit towards the account or a check. No initial annual fee. After the first year, the annual fee is $95, which is still small considering the potential for cashback rewards.Superior account management. Transaction details, year-end summaries, and purchase records are available. Import data into formats like Quickbooks and Excel. Enjoy payment flexibility to make planning more manageable – you pick your monthly due date.
At a glance:
After spending $15,000 on purchases in the first three months, new members enjoy 100,000 bonus points – equaling $1,000 cashback.Earn more points. For every dollar spent on select purchases (travel, shipping, advertising), members will earn three points: one point per dollar spent on all other purchases. Points do not expire as long as the account is active. Better rewards. Points can be redeemed for cashback, travel, and even gift cards. If redeemed for travel, a member’s points are worth 25% more. Account monitoring is important. Members will get purchase and fraud protection to protect their businesses. No foreign transaction fees for purchases made outside the US.
At a glance:
New members will benefit from the 0% introductory APR on purchases in the first 12 months, along with no annual fee. Rates vary after the first year, depending on creditworthiness. (APR after the intro period is 17.99% to 25.99%, variable. See rates and fees.)On up to $50,000 within a year, members will receive 2% cashback that is automatically credited to the account statement on eligible purchases. Flexible credit limits will help increase buying power when business needs arise. Expanding buyer power allows members to spend beyond their credit limit in certain cases – it adjusts with the use of the card, payment history, and other factors.Account tools, such as the American Express Business app and year-end summary overviews, help you better manage your business account.Traveling members will enjoy car rental loss or damage coverage when rentals are purchased with the eligible card.
Many opt to use business credit cards for various reasons, including:
Spending power: Many businesses, especially startups, benefit from the higher credit lines available with business credit cards. Getting a business off the ground requires money to be spent. Avoiding personal expenditures: Business credit cards allow you to keep personal spending and business expenses separate, which is an advantage come tax time.Business credit profile: Although personal credit scores are usually used at the outset of applying for business credit cards, once approved, the business credit line stands separate from your personal credit report. This is an advantage if you plan on building a business credit history and an established line of credit for better rates in the future. Better protection: Many business credit card companies offer purchase protection on eligible purchases. This means you’re protected if those items are stolen, damaged, or lost.
Interest rates: Comparing the interest rates on different cards for purchases is a necessity. While some credit card companies offer low introductory interest rates, the annual percentage rate may change after the introductory period is over. Fees and penalties: It is essential to know if a business credit card comes with an annual fee. Sometimes this fee may negate the advantage of the possible rewards within a given year. The best credit cards have low annual fees or no annual fee at all.Possible rewards: Each company boasts different rewards for their credit card members. Some simply give you flat-rate rewards on every purchase made, while others have bonuses based on spending categories, and others offer cashback or points reward options. You must decide which is right for your business.
