When I started my new business, getting a credit card was the last thing on my mind. As expenses came up that I needed to charge, such as buying something online, I used a personal card. Then it came time to file my taxes. Oh how I wished I’d used a business credit card, or at least a card that I used for nothing other than company expenses.
Having learned my lesson the hard way, I spent a ton of time researching the best business credit cards for a small business like mine. While the business doesn’t have any employees, I did want the flexibility to be able to request more cards if and when the business grows. The results of this research were enlightening. Here are few things I learned:
- Many Cards–Three Flavors: While there are many business credit cards to choose from, they all basically fall into about three categories: Low Interest, Cash Back, and Travel.
- Nice Rewards: I was surprised to see some of the perks offered on business credit cards. Depending on what you value most, you can find everything from 0% introductory offers (which can be great for a start up) to significant cash bonuses and incentives.
- Sole Proprietorship: It’s perfectly fine to get a business card even if your company is a sole proprietorship. You don’t have to incorporate or form an LLC to qualify for a business credit card.
Which type of card is best for any small business depends on how the card will be used. If you plan to travel a lot, a business credit card with travel rewards can offer substantial savings on airfare and hotel stays. If travel is not your focus, but everyday purchases of supplies and equipment is, a cash back rewards card may be the best choice. And if you are looking to finance your company in part with credit cards, a card with a 0% offer may be the way to go.
There are many business credit card options. I carry a cash back business card for my company. Whatever choice you make, whether it’s listed above or not, don’t make the same mistake I did. Keep your business expenses on a separate credit card, and take advantage of the perks offered by these business cards. After all, a start up needs all the help it can get!
About Rob Berger
I want to start my own business, but don’t have good credit, are there any options for someone like me?
I was reading about getting credit for a business when the owner has bad credit. I read somewhere that when you are a corporation, you and the corporation are two separate entities. Meaning that you should be able to get credit for you business with out your past credit issues being a problem.
I recently gave them a try to replace my American Express Platinum Business Card. What a terrible mistake. They gave me a card with a $1,800 credit limit but did not tell me there was a limit at all. I experienced 2 embarrassing declines before calling. Their customer service is a joke. Don’t waste your time with this card.