Best Business Credit Cards for Small Business

Running a small business comes with a unique set of financial challenges, and having the right business credit card can be a valuable tool to manage cash flow, separate personal and business expenses, and earn rewards or cash back. 

Here is a detailed guide on the best business credit cards for small businesses in 2024, based on key features like rewards programs, credit limits, APRs, and additional perks.

What is a Business Credit Card?

A business credit card is a financial tool specifically designed for business owners to manage company expenses, separate personal and business finances, and build business credit. These cards offer features tailored to business needs, such as higher credit limits, employee spending controls, and rewards programs that cater to common business expenses like office supplies, travel, and advertising.

Business credit cards can also provide benefits like cash back, points, or travel rewards, along with perks such as expense management tools and detailed spending reports. They help streamline cash flow by offering short-term financing options and can contribute to the financial growth of a business when used responsibly.

Best Business Credit Card in 2024

Selecting the right business credit card is crucial for optimizing your company's financial management and maximizing rewards. 

Here are some top business credit cards offered by various banks for 2024, each catering to different business needs:

1. American Express Blue Business Cash™ Card

Credit: American Express Cards

The American Express Blue Business Cash™ Card has the following key fees:

• Annual Fee: $0
• Intro APR: 0% on purchases for the first 12 months
• Regular APR: 17.99% to 25.99% variable
• Foreign Transaction Fee: 2.7% of each transaction
• Late Payment Fee: Up to $3

Key Features:

• Cash Back: Earn 2% cash back on the first $50,000 in eligible purchases per year, then 1% after that.
• Intro APR: 0% introductory APR on purchases for 12 months from the account opening date.
• Additional Benefits: Includes expanded buying power, which allows you to spend beyond your credit limit based on payment history and other factors.

Why It’s Great: This card is ideal for small business owners who want a straightforward cash-back structure and flexibility with no annual fee. The introductory APR period is especially beneficial for managing larger purchases.

2. Chase Ink Business Preferred® Credit Card

Credit: Chase Credit Cards

The Chase Ink Business Preferred® Credit Card offers the following key fees and rates:

• Annual Fee: $95
• Regular APR: 20.74% to 25.74% variable
• Foreign Transaction Fee: None
• Late Payment Fee: Up to $40

Key Features:

• Rewards Points: Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping, internet, cable, and phone services, as well as advertising purchases made with social media sites and search engines each account anniversary year.
• Sign-Up Bonus: Earn 100,000 bonus points after spending $15,000 on purchases within the first 3 months of account opening.
• Travel Perks: Points can be redeemed for travel at a 25% higher value through the Chase Ultimate Rewards portal.

Why It’s Great: The Chase Ink Business Preferred card is perfect for businesses with significant travel or advertising expenses. Its generous rewards program and points redemption options offer excellent value for those who prioritize travel benefits.

3. Capital One Spark Cash Plus

Credit: Capital One

The Capital One Spark Cash Plus card has the following key fees and rates:

• Annual Fee: $150
• Foreign Transaction Fee: None
• Late Payment Fee: 2.99% of the unpaid portion of the statement balance

Key Features:

• Cash Back: Unlimited 2% cash back on every purchase, with no caps.
• Sign-Up Bonus: Earn up to $1,000 cash bonus – $500 once you spend $5,000 in the first 3 months, and another $500 after spending $50,000 in the first 6 months.
• Flexible Payment Options: No preset spending limit, which can help businesses with fluctuating expenses.

Why It’s Great: This card is ideal for businesses that make consistent, high-volume purchases. The unlimited 2% cash back helps maximize rewards without the need to track spending categories.

4. Bank of America® Business Advantage Customized Cash Rewards Credit Card

Credit: Bank of America

The Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card offers the following key fees and rates:

• Annual Fee: $0
• Introductory APR: 0% on purchases for the first 9 billing cycles
• Regular APR: 17.99% to 27.99% variable
• Foreign Transaction Fee: 3% of each transaction in U.S. dollars
• Late Payment Fee: Up to $49

Key Features:

• Cash Back: Earn 3% cash back in a category of your choice (gas stations, office supply stores, travel, etc.), 2% at restaurants, and 1% on all other purchases.
• Intro APR: 0% introductory APR on purchases for the first 9 billing cycles.
• Bonus Offer: Earn a $300 statement credit after making at least $3,000 in purchases within 90 days of account opening.

Why It’s Great: The ability to choose a 3% cash back category allows for customization to fit the needs of different types of small businesses. The no-annual-fee structure makes it an affordable choice for startups and smaller operations.

5. American Express Business Gold Card

Credit: America Express

The American Express® Business Gold Card offers the following key fees and rates:

• Annual Fee: $375
• Foreign Transaction Fee: None
• Late Payment Fee: Up to $39

Key Features:

• Rewards Points: Earn 4X Membership Rewards® points on the 2 select categories where your business spends the most each billing cycle (up to the first $150,000 in combined purchases per year).
• Flexible Spending: No preset spending limit, providing flexibility as business needs grow.
• Travel Benefits: Points can be transferred to over 20 travel loyalty programs.

Why It’s Great: This card is well-suited for businesses with varied spending patterns. The 4X points in top spending categories can yield significant rewards, especially for businesses with large expenses in travel, advertising, or supply purchases.

6. Wells Fargo Business Elite Signature Card®

Credit: FinanceBuzz

The Wells Fargo Business Elite Signature Card® offers the following key fees and rates:

• Annual Fee: $125, waived for the first year
• Regular APR: Prime + 3.99% on purchases
• Foreign Transaction Fee: None
• Late Payment Fee: Up to $49

Key Features:

• Cash Back: Earn 1.5% cash back on every purchase or choose to earn points, with 1 point per $1 spent.
• Sign-Up Bonus: $1,000 cash back or 100,000 bonus points after spending $25,000 in the first 3 months.
• Extra Perks: Business management tools, employee cards at no additional cost, and customizable spending limits.

Why It’s Great: The Wells Fargo Business Elite card is tailored for larger businesses or small businesses with higher spending needs. Its robust rewards program and management tools make it a solid choice for managing multiple employee expenses.

What to Consider When Choosing a Business Credit Card

When choosing a business credit card, it’s important to assess various factors to ensure the card aligns with your company’s financial needs and goals. Here’s a detailed breakdown of what to consider:

Rewards Program

• Spending Categories: Analyze your business’s spending patterns to choose a card that offers the highest rewards in the categories where you spend the most, such as travel, office supplies, advertising, or dining.
• Type of Rewards: Decide between cash back, points, or travel rewards. Cashback is straightforward and flexible, while points can often be redeemed for travel, gift cards, or merchandise, sometimes offering higher value through specific redemption methods.

Annual Fees

• Fee vs. Benefits: Determine whether the card’s rewards and benefits justify its annual fee. Higher annual fees often come with better perks, such as premium rewards, travel credits, or concierge services, but only makes sense if your business will take advantage of these features.
• No-Fee Options: For smaller businesses or startups looking to save on costs, consider cards with no annual fee that still offer decent rewards and benefits.

Introductory APR Offers

• Interest-Free Periods: Cards with 0% introductory APR on purchases or balance transfers can be valuable if you anticipate making large purchases and need time to pay them off without incurring interest.
• Duration: Review the length of the introductory period and the regular APR after it ends to ensure the terms align with your financial planning.

Credit Limit

• Spending Needs: Ensure the card’s credit limit meets your business’s spending needs. Some cards offer high credit limits or no preset spending limits, which can be beneficial for businesses with fluctuating expenses.
• Potential for Growth: Choose a card that allows for credit line increases as your business grows, giving you more flexibility to manage larger expenses.

Employee Cards and Spending Controls

• Employee Management: If you plan to distribute cards to employees, look for features that allow you to set individual spending limits, monitor transactions, and manage expenses easily.
• Additional Card Fees: Check if the card charges fees for issuing employee cards, as this could impact your overall cost.

Expense Management Tools

• Integration Capabilities: Cards with built-in expense tracking tools or those that integrate with accounting software like QuickBooks or Xero can streamline financial management and simplify bookkeeping.
• Detailed Reporting: Look for cards that provide comprehensive spending reports to help monitor and analyze business expenses, making budgeting and financial planning more efficient.

Perks and Benefits

• Travel Perks: For businesses that require frequent travel, perks like airport lounge access, TSA PreCheck/Global Entry fee credits, travel insurance, and no foreign transaction fees can be valuable.
• Purchase Protection: Benefits like extended warranties, purchase protection, and return assistance can offer peace of mind for major business purchases.
• Business-Specific Benefits: Some cards offer business-focused perks such as advertising credits, shipping discounts, or higher points on business services.

Security and Fraud Protection

• Fraud Alerts and Zero Liability: Ensure the card offers robust fraud protection, including real-time alerts and zero liability on unauthorized purchases.
• Virtual Cards: Some issuers provide the ability to create virtual cards for secure online transactions, adding an extra layer of protection.

Credit Score Requirements

Approval Chances: Most premium business cards require good to excellent credit scores. Review the card’s credit requirements and ensure your business credit profile aligns with the criteria to increase your chances of approval.

Foreign Transaction Fees

International Business: If your business deals with international clients or makes overseas purchases, choose a card with no foreign transaction fees to avoid extra charges on international transactions.

Sign-Up Bonuses and Offers

• Welcome Bonuses: Look for cards that offer attractive sign-up bonuses. These can provide significant value, especially if your business can meet the spending threshold within the required timeframe.
• Conditions: Check the terms associated with earning and redeeming the bonus to ensure it aligns with your spending habits.

Repayment Flexibility

• Flexible Payment Terms: Cards with no preset spending limit or those that allow for pay-over-time options can be beneficial for managing cash flow during varying business cycles.
• Grace Periods: Ensure the card offers a grace period for purchases, allowing you to avoid interest charges if the balance is paid in full each month.

Customer Service and Support

• 24/7 Support: Reliable customer service is essential, especially if you encounter issues with transactions or account management.
• Dedicated Business Support: Some cards offer dedicated business support lines or account managers for added convenience and assistance.

Conclusion

Choosing the right business credit card can provide numerous benefits, from earning rewards and cash back to managing cash flow and building business credit. Assess your business’s spending habits, desired perks, and budget to select a card that supports your financial goals and day-to-day operations. With the right credit card, small business owners can gain valuable rewards and enhance their business's financial health.