5 Best Business Credit Cards for Start Ups

Business credit is an important financial tool for all businesses. It is used to help business owners qualify for loans and any other form of financing. It is also a vital tool for developing relationships with B2B (business-to-business) sellers, and vendors. Business credit can be used as leverage for your business when cash flow is low, and/or expansion of your services and products. In general, having business credit cards is a key indicator of the financial health of your business. If your company doesn't have business credit, it'll struggle to get loans. Therefore, business credit cards are where you want to start if you're planning to get funding for your business in the future. 

While there is no one-size-fits-all when it comes to choosing the best business credit card for your start up. The right card will depend on your company's spending patterns and what type of rewards you value most. However, there are a few key factors to keep in mind when comparing business credit cards.

Business Credit Building Tips before applying for Credit cards

As a start up business, never forget these tips while building business credit:

1. Pay early and often
2. Use the credit card of your business
3. Open a business checking account 
4. Continue to build relationships with vendors
5. Get your EIN
6. Register your business with the secretary of state
7. Maintain a website presence

Best Business Credit Cards to Help Build Your Credit

If you're ready to build your business credit and enjoy the benefits of credit cards, below are some credit cards to consider:

• Lowe’s Business Credit Card by American Express 

If you're looking for a business credit card that can offer you rewards and convenience, the Lowe's Business Credit Card by American Express is a great option. This card allows you to earn points on every purchase, which can be redeemed for Lowe's merchandise or statement credits. You can also take advantage of exclusive offers and discounts at Lowe's stores. Plus, if you're ever in a bind, the Lowe's Business Credit Card by American Express comes with an extended warranty program that can help protect your purchases. So if you're in the market for a new business credit card, be sure to check out the Lowe's Business Credit Card by American Express!

The Lowe's Business Credit Card by American Express gives 5% cash back the first six months, and 2% after at when used at restaurants. The Lowe's Business Credit Card by American Express can be used everywhere American Express is accepted.

•   American Express Blue Cash Card for Business

If you are searching for a rewards card that is straightforward, then look no further than this cash card. The business credit cards provided by American Express are reported to the SBFE, meaning you can see the information on several business credit reports which is determined by the report that a lender purchased.

 This is one of the top business credit cards for business owners who want low-cost financing as you'll be able to get 0% on 12-month purchases from the day you opened the account. They also provide a welcome offer where you can earn a statement credit of $250 after making pursuers worth $3,000 on your credit card within your initial three months.

•  Chase Ink Business Preferred

When it comes to building business credit, one of the best options is to go for Chase Ink Business Preferred. This business credit card in particular is attractive. Users will get an excellent signup bonus where they can earn 100,000 points after purchasing things worth $15,000 in the initial three months after opening the account, as long as they are qualifying purchases. This is worth a cash back of $1,000 or $1,250 as travel rewards if you redeem via their travel portal, which is Chase Ultimate Rewards.

•  Capital One Spark Cash Select

If you own a business where you want to carry a balance that has an introductory APR, then this card might be the best choice for you.

 It has an annual fee of $0, and it gives an introductory APR on any purchases for twelve months, with a variable APR of between 17.49% and 25.49% after that. You'll also enjoy unlimited 1.5% Cash Back on each purchase and a cashback of 5% on rental cars and hotels booked via Capital One Travel. You do need good credit. If you’re just getting started and not ready for the business card, the Capital One Platinum is a good alternative. Capital One platinum gives higher limits and approves lower credit scores.

•  Divvy Smart Business Credit Card

This credit card helps to streamline spending management by

 merging free expense management software with corporate cards. With this, the admin can completely control employee spending and can adjust the spending limits within seconds. With Divvy, your business can get rid of expense reports, build business credit, and spend within your budget.

Biggest Mistake made by New Business Owners getting Credit 

Separation of Personal and Business Expenses:

Maintaining a clear distinction between personal and business finances is crucial for LLCs. Business credit cards provide a dedicated means to cover business expenses, helping you streamline accounting processes and simplify tax filings. This separation also protects your personal assets in case of legal liability or financial difficulties.

Conclusion

Learning how to build business is very important towards the growth of your business in general. The tips shared above should help in your journey towards building your business credit and also choosing the best business credit cards for your business.

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