As a small business owner, managing expenses efficiently and maximizing rewards can be key factors for growth and stability. A business credit card tailored to your spending habits not only helps streamline cash flow, but it can also offer significant rewards in the form of cashback, travel points, and other perks.
Choosing the right credit card is a strategic decision that can enhance your financial flexibility and even provide additional benefits like expense tracking, purchase protections, and employee card options.
Why Choose a Business Credit Card?
Before diving into the specifics of the best cards, it’s important to understand the advantages of using a business credit card over a personal credit card for your small business:
- Expense Tracking and Organization: Business credit cards often come with advanced reporting features that help track and categorize expenses. This simplifies bookkeeping and makes tax season less stressful.
- Higher Credit Limits: Business credit cards typically offer higher credit limits than personal cards, allowing businesses to cover larger expenses or manage cash flow gaps.
- Rewards and Cash Back: Many business credit cards offer tailored rewards programs that allow you to earn points, miles, or cash back on essential business purchases such as office supplies, travel, and advertising.
- Employee Cards: Business credit cards often provide the option to issue cards to employees, with spending limits and tracking capabilities.
- Build Business Credit: Using a business credit card responsibly can help build your business’s credit profile, which may make it easier to secure loans or better credit terms in the future.
Top Business Credit Cards for Small Business Owners in 2024
1. Chase Ink Business Preferred® Credit Card
Best For: Travel rewards and high-spending businesses.
The Chase Ink Business Preferred® Credit Card is one of the most popular business cards for those who value flexibility in earning and redeeming points. It offers a competitive points system and a massive sign-up bonus, making it ideal for small businesses with significant travel and business-related expenses.
- Rewards: Earn 3x points on travel, shipping, internet, cable, and phone services, as well as advertising purchases made with social media sites and search engines (on up to $150,000 spent in combined purchases each year). Earn 1x points on all other purchases.
- Sign-Up Bonus: Earn 100,000 bonus points after spending $8,000 on purchases within the first three months. These points are worth $1,250 when redeemed for travel through Chase Ultimate Rewards.
- Additional Benefits:
- Points can be transferred to over a dozen airline and hotel partners.
- Cell phone protection of up to $600 per claim when you pay your phone bill with the card.
- No foreign transaction fees.
- Annual Fee: $95
Why It’s Great for Small Business Owners: With the large sign-up bonus, 3x points on essential business categories, and excellent redemption options through Chase Ultimate Rewards, this card is ideal for businesses with travel needs and high expenditure on communication and advertising.
2. American Express® Business Gold Card
Best For: Customizable rewards based on business spending patterns.
The American Express Business Gold Card offers an intuitive and flexible rewards structure, making it a strong choice for businesses with varied spending categories. This card automatically adjusts to your top two spending categories each billing cycle, offering maximum rewards where your business spends the most.
- Rewards: Earn 4x Membership Rewards® points on the two categories where your business spends the most each month (on the first $150,000 in combined purchases per year). Categories include airfare, advertising, gas, shipping, and more. Earn 1x points on all other purchases.
- Sign-Up Bonus: Earn 70,000 Membership Rewards® points after spending $10,000 on eligible purchases within the first three months.
- Additional Benefits:
- 25% points back when you book flights using points through American Express Travel.
- Expense management tools and detailed spending reports.
- Annual Fee: $295
Why It’s Great for Small Business Owners: The ability to earn 4x points on your top two spending categories each month means this card is highly customizable and suitable for businesses with fluctuating expenses across categories like travel, advertising, and shipping.
3. Capital One Spark Cash Plus
Best For: Straightforward cash back with no spending limits.
The Capital One Spark Cash Plus offers one of the simplest and most rewarding cash-back programs for small business owners. It’s a flat-rate cash-back card that doesn’t impose spending categories, which means you can focus on running your business rather than maximizing specific purchase types.
- Rewards: Earn unlimited 2% cash back on all purchases, with no cap or spending categories to track.
- Sign-Up Bonus: Earn up to $1,000 in cash bonuses: $500 after spending $5,000 in the first three months, and an additional $500 after spending $50,000 in the first six months.
- Additional Benefits:
- Free employee cards with individual spending limits.
- No preset spending limit, which can provide added flexibility for large business expenses.
- Annual Fee: $150
Why It’s Great for Small Business Owners: The simplicity of earning 2% cash back on every purchase is ideal for small businesses that want a hassle-free rewards system. The potential $1,000 sign-up bonus also makes this card highly attractive for those planning significant purchases in the first six months.
4. American Express Blue Business® Plus Credit Card
Best For: No annual fee and everyday business spending.
The American Express Blue Business® Plus Credit Card offers fantastic value for businesses seeking a no-fee option with solid rewards. It’s a great card for smaller businesses or those just getting started, as it provides rewards on all purchases without an annual fee.
- Rewards: Earn 2x Membership Rewards® points on the first $50,000 in purchases each year, then 1x points on everything else.
- Intro APR Offer: 0% APR on purchases for the first 12 months.
- Additional Benefits:
- Expanded buying power feature allows you to spend above your credit limit, depending on your payment history and other factors.
- No annual fee.
- Annual Fee: $0
Why It’s Great for Small Business Owners: For small businesses that want to avoid paying an annual fee while still earning valuable rewards, this card is a great option. The 2x points on all purchases make it a versatile choice for everyday business spending.
5. Bank of America® Business Advantage Customized Cash Rewards Credit Card
Best For: Customizable cash back with no annual fee.
The Bank of America Business Advantage Customized Cash Rewards Credit Card is designed for businesses that want flexibility in their cash-back categories without paying an annual fee. It allows you to select your highest cash-back category, giving you control over your rewards.
- Rewards: Earn 3% cash back in one category of your choice (gas stations, office supply stores, travel, TV/telecom, or other), 2% on dining, and 1% on all other purchases. The 3% and 2% cash back are limited to the first $50,000 in combined purchases each year.
- Intro Offer: 0% APR on purchases for the first nine billing cycles.
- Additional Benefits:
- Free employee cards with customizable limits.
- No annual fee.
- Annual Fee: $0
Why It’s Great for Small Business Owners: This card is perfect for businesses that want to customize their rewards categories based on their spending needs. It’s particularly appealing for businesses with fluctuating expenses in categories like gas, office supplies, or travel.
6. Brex 30 Card
Best For: Startups and growing businesses looking for no personal guarantee.
The Brex 30 Card is a unique offering in the business credit card market. Unlike many other business credit cards, Brex doesn’t require a personal guarantee, meaning your personal credit score won’t be affected. This card is particularly useful for tech startups and businesses with venture capital backing, as it offers impressive rewards across key business categories.
- Rewards: Earn 7x points on rideshare, 4x points on travel booked through Brex, 3x points on dining, 2x points on recurring software subscriptions, and 1x points on all other purchases.
- Additional Benefits:
- No personal guarantee required.
- Higher credit limits based on your business’s cash flow and financial profile.
- Integration with expense management software like QuickBooks and Xero.
- Annual Fee: $0
Why It’s Great for Small Business Owners: The Brex 30 card is ideal for startups and growing businesses that want flexible rewards and a no-personal-guarantee option. The high rewards in key spending categories, along with no annual fee, make it a top choice for high-growth businesses.
How to Choose the Best Credit Card for Your Business
Choosing the right business credit card requires evaluating your business’s specific needs and spending habits. Here are a few factors to consider when making your
own decision:
1. Spending Habits
- Analyze where your business spends the most. Do you spend heavily on travel, shipping, or office supplies? Cards like the Chase Ink Business Preferred or Amex Business Gold are great for travel and advertising, while the Capital One Spark Cash Plus provides flat-rate cash back for all purchases.
2. Annual Fees
- If you’re trying to avoid an annual fee, consider cards like the American Express Blue Business® Plus or the Bank of America Business Advantage Customized Cash Rewards. These cards offer competitive rewards without a fee, but they may have spending caps on rewards.
3. Sign-Up Bonuses
- Sign-up bonuses can be incredibly valuable for businesses that plan to make large purchases in the first few months. Cards like the Chase Ink Business Preferred and Capital One Spark Cash Plus offer hefty bonuses, but they come with spending requirements. If you can meet those requirements, it’s an easy way to get significant rewards upfront.
4. Rewards Flexibility
- Some cards, like the Chase Ink Business Preferred and Amex Business Gold, allow you to transfer points to travel partners, offering greater flexibility in how you redeem rewards. If you don’t travel often, cash-back cards like Capital One Spark Cash Plus offer simplicity and direct monetary benefits.
5. Intro APR and Financing
- If you need to finance large purchases or want to pay down balances over time without incurring interest, look for cards that offer 0% APR introductory offers. The American Express Blue Business® Plus offers 0% APR for 12 months on purchases, providing flexibility if you need to manage cash flow or make significant investments in your business.
Conclusion
Choosing the best credit card for your small business in 2024 depends on your specific needs, spending habits, and financial goals. Whether you prioritize travel rewards, cash back, or flexibility, there’s a card out there that can optimize your business’s finances and help you grow. Consider factors such as reward categories, annual fees, sign-up bonuses, and how you plan to use the card. Cards like the Chase Ink Business Preferred, Capital One Spark Cash Plus, and Amex Business Gold offer excellent options depending on your business’s priorities. Evaluate your spending habits and long-term needs to select the card that will deliver the most value for your small business.