Shebudget’s Top Five Best Small Business Credit Cards of 2016

The best business credit cards

The best business credit cards offer small business owners generous sign-up bonuses as well as a chance to earn cash back, rewards and improved business credit. Owning a small business takes dedication and hard work, and not everyone can do it. The vast majority of small businesses fail within the first year, which is why so many small business owners never bother with a small business credit card. However, the best business credit cards enable these small business owners to thrive by offering them the chance to do more and earn more. With the enhanced ability to preserve your businesses cash flow and grow as quickly as possible, the best business credit cards are worth serious consideration.

What we’ve done is compile a comprehensive list of all the best business credit cards we know work well for small business owners. With these cards outlined, highlighted and broken down feature by feature, we make it easier for small business owners to choose the right card to enhance their business rather than detract from their business. We know that as a small business owner, you have to spend your time working on your business and not comparing business credit cards to determine which one is the best of the best. We know that you have so many other things you could be doing, which is why our goal is to make this a decision that’s simple, effective and profitable for your small business. We think that you will enjoy our list of best business credit cards for small businesses.

What You Need to Know About Business Credit Cards

Whether you have the best business credit card or you are simply looking for one of the best business credit cards, there are a few things you need to know about the entire concept. It doesn’t matter if you are the owner of a business with one employee or 1,000 employees, most business credit cards work the same way whether they are the best or the worst on the market. The benefit of a business credit card, best or otherwise, is that it provides your business with quick capital and it allows you to manage your business transactions with ease. It’s highly recommended that all businesses own one of the best business credit cards so that running your business is that much simpler.

However, there is always something you have to know about the best business credit cards on the market, and this information is what is going to make the difference in your life when it comes to managing the finances at your business and making the most of what your business has to offer the community.

  1. Business credit card eligibility rules – All business credit cards use a mixture of the owner’s personal and business credit history to determine eligibility and approval for a small business credit card. The most important thing any business owner can do to ensure that he or she is eligible to have one of the best business credit cards on the market is check your personal credit history. Make sure your score is accurate. If you’ve been a business owner in the past, you will want to check with the business credit bureaus to ensure your score is where it should be with them, too. Additionally, you’re also going to want to make sure your business licenses and insurance policies are up-to-date, as many of the best business credit card issues find this favorable.
  2. Personal Liability – If you open a business, you need to know that you might be liable for your business debts personally. It all depends on how you register your business. Your best bet is to speak with your accountant and find out how you want to register your business and whether or not you want to become a corporation or sole proprietor or even a Limited Liability Corporation. We don’t want to imply that your business will fail, but you just never know. That’s why you need to protect yourself personally.
  3. Credit Limits – The good news with the best business credit cards available right now is that they typically offer business owners a higher credit limit. It’s a lot more typical for a business to spend and pay more than it is for a person. Most of the small businesses that apply for one of the best business credit cards available are able to get a credit limit of at least $10,000, though many carry limits that are closer to $25,000.
  4. Ease of Accounting – The good news for business owners is that the best business credit cards offer something unique. They make it easy for you to keep track of your accounting. Nothing is more frustrating as a business owner than making it to tax time only to realize that you have to sort through receipts and old bills for an entire year to itemize and organize spending for tax purposes. So long as you put all your business spending on your business credit card, you will find that most of the best business credit card issuers do the itemizing for you; sometimes quarterly, but always annually.

What to Look for in the Best Business Credit Cards

It’s easier than ever for small businesses to open a credit card account with a major financial institution, but there are so many things that business owners should know before they go out and apply for cards. For one, it’s a great idea. Even if you are not all that into credit cards, you should know that the best business credit cards offer your business a few things that nothing else does; and we’ve discussed those already. But one thing we did not previously discuss is that it’s often a lot simpler for a new business owner or start-up to receive a credit card for their business than it is to secure approval for a small business loan.

Additionally, a credit card account in the name of your new business is a must if you want to establish business credit history. With so many factors to consider, however, it’s difficult to know which of the best business credit cards is right for your small business. Unfortunately, we cannot answer that question for you. All we can do is guide you by discussing some of the best business credit cards available right now for various businesses and situations, and educate you on what to look for before you apply for a business card. What is best for you might not be best for other businesses and vice versa, so it’s important to understand what you do need to look for before you apply for one of the best business credit cards around.

  1. Interest Rates – The interest rate you pay with your business credit card is highly important. If you plan on carrying balances at all, you need to remember that you will pay far more if your rate is high. Sometimes, though, it’s not possible to apply for a card with a low interest rate. Since credit card issuers do take your credit history into consideration, you might not qualify for one with a low rate. On that note, if you do not plan on carrying your balances because you will pay them in full each month, it might not matter so much to you what the rate is on the best business credit card for you business.
  2. Rewards – Everyone loves a good reward, even businesses. Some business owners forget that they, too, earn rewards when applying for a credit card for their business, and that’s a problem. Your business has different needs than other businesses, so let’s look at that. Do you or any of your employees travel regularly? If so, you might want to consider one of the best business credit cards in the travel department. Earning miles and taking advantage of free checked luggage and priority boarding, lounge access and other travel related perks might be the most beneficial way for you to use your business credit card. If you are not a business that does a lot of traveling, you might find that you are more likely to enjoy a business credit card that’s best for cash back. This way, you can earn money with every purchase that you make. Everyone enjoys earning money for spending money; it’s kind of like being paid to shop – and that is always good. Another consideration is office supplies; many of the best business credit cards offer higher rewards rates for business purchases that are profitable for offices and other businesses that use a lot of office supplies and even pay for employee cell phones.
  3. Annual Fees – No one wants to pay for things that they don’t actually buy, but annual fees are a big part of the credit card industry. However, there are some credit card issuers that do not charge annual fees to their cardholders, and others that waive the annual fees for a year. Even still, other card issuers charge affordable annual fees in comparison to some of the higher fees on higher-end cards.
  4. Usage – Sometimes one card might look like the best business credit card all the way around, but it’s not for your business. Why? Because you might not use the card all that often. If you are not big on charging things to your business, you probably do not need a business credit card. However, if you like to get paid to spend money, you might consider one of the best business credit cards available to pay you for spending money. We recommend that usage is frequent and always paid in full. We recommend that you charge everything to your credit card so that you are able to do two things; keep your purchases itemized using the card issuer’s itemization and annual tax statement benefit as well as earn more points by making more purchases.
  5. Your Credit – Before you assume that you can apply for the best business credit card for your personal business needs, consider your credit. If it’s not excellent, you might not be able to qualify for many of the best business credit cards. This means you’ll need to find a card that works with your credit, and it might not be the best business credit card available. But it could be a stepping stone for you to use to work your way to better credit.

capital one spark best business credit card

Best Business Credit Card for Statement Credits – Capital One Spark Miles for Business

There is something to be said about credit card simplicity; mostly that it’s underrated and should be offered by more cards. That’s what makes this Capital One card one of the best business credit cards in the world for 2016. This business credit card offers business owners the flexibility to earn points to use for travel or anything else by redeeming them for a statement credit. It’s almost as if you spend money, earn points and then turn around and have a portion of what you owe at the end of the month erased from your bill. That’s not a bad concept, and it could work very well for you and your business.

Small business owners that are willing to spend at least $2,950 per year on this card are going to find that it is the most beneficial to their business. This is the minimum amount to spend if you want to eliminate the annual fee by balancing it out so that it does not cost your business a thing. However, it’s also important to note that this annual fee is not one of the higher annual fees sometimes associated with some of the best business credit cards on the market. The annual fee is waived for all small business owners for one full year, and it’s only $59 per year after that.

There are a number of features that make this card one of the best business credit cards on the market, including the fact that the standard mileage earned for every dollar spent is 2 miles. That’s a bit higher than some other credit cards, who will offer a higher rate of return on certain purchases and then 1 point for every dollar spent on other purchases. The downside is that business owners looking to travel a lot can earn a significant number of points, but they will not earn things such as free priority boarding or checked luggage, which can really add up throughout the course of a year. Additionally, the miles you earn with this card are not transferrable to any other airline or travel partner, which is one thing that some of the other best business credit cards in the market offer to their cardholders.

Despite the few drawbacks that this card offers to cardholders, it’s a great card for small business owners. It’s not a charge card, so businesses have the opportunity to spread out their repayment options longer than usual if they are not working with a steady cash flow. It is also a card that has a low annual fee, which is always more affordable for a small business (especially one just getting started). The quarterly tax statements that Capital One provides for cardholders is also what makes this card one of the best business credit card available right now. There is very little that can beat your tax information being totaled and handled for you on a regular basis.

Redeeming miles is easy when you use the Capital One online Orbitz-powered travel tool. However, you can also forgo that and make this one of the best business credit cards for your business by utilizing the Purchase Eraser tool. This allows you to turn your miles into cash and pay off a portion of the balance on your account each month, which is a great concept for anyone willing to lower their bills and better their businesses.

Capital one Spark Miles for Business Benefits

  1. Earn 50,000 bonus miles by spending $4,500 within the first three months of opening this card
  2. No annual fee for one year
  3. Low annual fee after the first year compared to other business credit cards
  4. Additional cards for employees are free
  5. Quarterly tax statements are mailed to you every quarter
  6. Annual tax statement at the end of the calendar year
  7. Earn 2 miles per dollar spent – more than many of the other best business credit cards available right now

capital one spark classic best business credit card

Best Business Credit Card for Business Owners without Excellent Credit – Capital One Spark Classic for Business

Let’s get right to the point here; we all know that having excellent credit following the collapse of the economy in 2008 is a bit of a struggle for many. Even many of those who are so careful with their finances seemed to have gone through a period of misfortune and desperate times, and it’s been something that they haven’t been able to bounce back from all the way. One mistake with your credit – one bad month, a bad year – can cause you serious consequences as far as your credit is concerned, which is why so many business owners with great financial prowess still have some average credit scores.

Some of the best business credit cards on the market, however, are not available to anyone without excellent credit. That really does eliminate the ability for many small business owners to apply for a credit card to benefit their company, and that can be difficult. This card, however, might not be one of the best business credit cards in general, but it certainly is one of the best business credit cards for borrowers and business owners that have less than stellar credit.

Very little about this business credit card is outstanding or even worth mentioning as far as rewards are concerned. However, it’s a good start for anyone who is willing to make the jump and apply for a business credit card with an average personal credit score. This card is a good stepping stone for those in need, and it’s one that you can use to help build your credit so that you can one day apply for one of the most beneficial and best business credit cards available.

What we really love about this card, and what we think makes it the best business credit card for business owners with average credit is the fact that there is no annual fee. Additionally, even though it is not a high-end card for business, the card does not cap or limit your rewards earnings. This means you can earn points with every dollar you spend, no matter how many dollars you spend. The drawback here is that you might not get the credit limit that you want applying for this card. After all, it is the best business credit card for those with average credit; not for those with great credit.

Another drawback to this card is the lack of sign-up bonus available. There is not one, which means that you will not be very likely to earn ample rewards points and bonuses throughout the year. It’s all right, though, if your reason for applying for this card is to build your credit and focus on that aspect through your business right now. It’s what makes this the best business credit card for people in this particular financial situation.

Capital One Spark Classic for Business Benefits

  1. No annual fee
  2. Earn 1% cash back on all purchases no matter how much you spend throughout the year
  3. You need only have average credit to apply for this card
  4. Extra cards for your employees come at no cost
  5. Quarterly itemized tax statements are created for all business owners
  6. Annual itemized tax statements are created for all business owners

chase ink plus best business credit card

Best Business Credit Card for Business Rewards – Ink Plus Business Credit Card

Who doesn’t love rewards? This is one of the best business credit cards on the market because it offers so many amazing rewards, and that’s why we’ve included it on our list of best business credit cards. What makes this card amazing for business owners everywhere is the rewards. There are so many of them, and they are very beneficial to small business owners. This is a card we like to say is made for those who own businesses in which there is some travel involved, as the rewards here are really beneficial to travelers. What we’d recommend to make the most of this particular business credit card is using it in combination with the Chase Ultimate Rewards program so that you can earn more points, combine your points and redeem them for serious rewards.

One of the most amazing features this card is equipped with that makes it one of the best business credit cards in the market is the fact that all business owners who spend $5,000 within 3 months of opening this card are eligible to earn 60,000 bonus points. This is the equivalent of $750 worth of travel, which is always nice when it comes to scheduling conferences and business meetings.

Another very good reason that this card is great for small business owners is that Chase does not report your credit to any personal consumer credit bureaus. Unlike other credit card issuers, they only report your credit to the business credit bureaus unless you default on your payments. This is a hugely profitable concept, and it works well for many. We like this card because it does offer so much, and it’s great for those who run offices that use a lot of office supplies. This is one of the best business credit cards on the market for several reasons, but primarily because it offers not only savings but significant earnings for all card holders.

We like this card as one of the best business credit cards on the market because it’s worth it if your business spends only $1,900 per year on the card. This helps to offset the $95 annual fee and make the card worth it to carry. This card is a great one for travel, but the only thing that you might want to consider when choosing this card to carry is that it is not going to offer you some of the other perks that many cards offer when they are branded through a major airline. For example, if your business is one that does a lot of traveling, it might be more profitable for your business to choose an airline branded card that allows you to check bags free of charge. After all, paying for your employees to each check their bags on every trip could cost thousands of dollars a year depending on how often your business promotes and pays for business travel.

As long as you spend $1,900 per year, this card works itself out as free. If you do spend significantly on hotels and on office supplies, you’re going to find that it is a highly profitable card to carry. That’s what makes it one  of the best business credit cards on the market.

Ink Plus Business Credit Card Perks

  1. Earn 60,000 bonus points when you spend $5,000 or more within three months of opening your account ($750 worth of free travel)
  2. Earn 5 points for every dollar spent on cell phones, business phones, office supplies, internet access and cable television access throughout the year up to $50,000 worth of purchases
  3. Earn 2 points for every dollar you spend on gas and hotel rooms throughout the year up to $50,000
  4. Earn 1 point for every dollar you spend on all other purchases throughout the year
  5. Reward points are worth 1.25 when they are redeemed using the Chase Ultimate Rewards program, which is a significantly higher rate than any other card on the market
  6. Points are transferrable to many reward program affiliates at a 100% value
  7. Set spending limits for all cards on your account to keep the company budget on track and to monitor and track employee spending with their own cards

ink cash best business credit card

Best Business Credit Card for Cash Back – Ink Cash Business Credit Card from Chase

With a great cash back bonus and no annual fee, this is one of the best business credit cards on the market. It offers serious cash back and value that is through the roof. This card is designed with the business owner in mind, allowing you to earn cash back on the things that matter most in the business world. Designed so that meeting spending caps in one year guarantees you will earn at least $1,750 cash back every year, these cards know that every little bit helps. Additionally, this is one of the best business credit cards available because it makes it easy for you to organize your business expenses come tax time.

We love this card and consider it one of the best business credit cards available because it offers small business owners the chance to pay for business purchases, advertising needs and so much more to help you get your business up and running successfully without paying too much for it. The chance to finance your purchases for a full year with no interest is astounding, and it can mean everything to a small business owner. The only thing we can stress about this is that you have to pay off those finance charges immediately – at least before the year is up – so that you are not hit with accrued interest and end up paying far more than you should for the things you purchased.

Because this is one of the best business credit cards on the market, your payments are not reported to any of the major consumer credit bureaus. However, they are reported to the business credit bureaus, which means you will be rated on your timeliness when paying your bills. If you default, you will find that the payments and the default are sent to the consumer credit bureaus and you do take a personal hit as well as a professional hit.

What makes the Ink Cash Back Business credit card one of the best business credit cards available is the fact that it caters to business owners in the small business sector with no finance charges and no annual fee. However, there is one drawback to this card, and that is the fact that the cash back rewards are always a little less profitable than other business reward cards. Additionally, any business owner not intending to use this card for the 0% APR financing for one full year might not find that this is the best business credit card available. Without using this feature, the card becomes only a cash back card that offers great points and rewards, but little use in terms of your business. You’ll find that you might use another of the best business credit cards on the list with more success for your small business. Read on to see if the benefits of the Ink Cash Business credit card make it the best business credit card choice for your small business.

Ink Cash Business Credit Card Benefits

  1. No interest on purchases made with the best business credit card for cash back for one full year
  2. Earn a $200 cash back bonus when you spend $3,000 in purchases throughout the first 90 days of opening your account
  3. Earn 5% cash back on all office supply, cell phone, landline phone, internet and cable television purchases and bills up to $25,000 per year/1% cash back after that
  4. Earn 2% cash back on all gas purchases and all restaurant purchases up to $25,000 per year/1% cash back after that
  5. Earn one point for every dollar you spend elsewhere throughout the year
  6. Combine your cash back rewards with the Chase Ultimate Rewards to earn even more rewards, cash back and other benefits and bonuses through Chase
  7. No annual fee to have this card, at all – what makes this the best business credit card for cash back is that the fee is not just waived for one year, it does not exist
  8. Acquire additional cards for your employees to use when making purchases, when traveling for business and when doing other business related spending
  9. Set limits on each employee credit card to cap spending limits each month
  10. No APR on any purchase for 12 full months from the date you open this business credit card account

american express business card best business credit card

Best Business Credit Card for Airline Perks – Business Platinum Card from American Express

Here is the best business credit card on the market for anyone who owns a business in which one or more of your employees travels regularly. When you spend more time in the airport than you do in the office, it only makes sense that you spend more time focusing on the importance of things like great travel service. This particular card offers some seriously impressive access to airport lounges, which is hugely beneficial. One reason this is so beneficial is that airport lounges often offer free Wi-Fi and snacks to members, more time to relax and priority access in other areas of travel, such as boarding. This card allows you to have access to all Delta Sky Clubs, Centurion Lounges, Priority Pass Select Lounges, and Airspace Lounges.

The annual fee to have this card is high for a small business. It’s $450 per year, but that’s the same price that it costs to purchase a one-year membership to Delta’s Sky Club, so it might work out for you if at least one person in the office is traveling for business several times a month. Free snacks, an open bar and privacy to work when you’re in the airport means a lot more productivity and fewer airline bills to pay when your employees begin tabulating the costs of their trips. Let’s also remember that your annual fee and your interest charges on this card are tax deductible, too, so there is additional savings to be had with this particular credit card.

If you’re looking for the best business credit card in the market for a business that has an unpredictable income, you are not going to want this card. This card has to be paid in full every month, which might not work with businesses that work without a constant cash flow and a predictable budget every month.

Business Platinum Card from American Express OPEN Benefits:

  1. Earn 40,000 bonus points when you spend $5,000 or more within three months of opening your account
  2. Access to airport lounges of various types in airports across the world
  3. Free Gogo and Boingo wi-fi in the air
  4. All cardholders receive an annual $200 statement credit to help cover the cost of checked baggage fees and other airline incidentals
  5. There is no credit limit on this card
  6. It’s a charge card, so you can charge as much as you’d like and then you have to pay it off in full each month (which keeps your business finances in check)
  7. Earn 2 points for every dollar spent booking travel through American Express
  8. Earn 1 point on all other purchases throughout the year

 

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