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Does your startup business have a credit card? As a brand new business, building business credit will be vital to the growth of your company. While some of you may be able to generate enough cash revenue to not need credit, the majority of you won’t have as much cash on hand, so building and having credit is important.
Some of you may be wondering, “how can a new business get credit?” Fair question. After all, if the business has no credit history at all, how could they get credit? Credit cards for new businesses with no credit history, many people believe they would be denied immediately, but that’s not the case at all.
The good news, you can use your personal credit history to show lenders you’re responsible with your credit. Since the majority of startup businesses are sole proprietors, you’re likely the face of the business, so you’ll use your own credit history. If you’ve been responsible with credit, your chances of getting approved for startup business credit is high.
Best Credit Cards For Startups
When it comes to the best credit cards for start up businesses, there’s a number of different options out there for you. Today, we’re going to focus on Ink Business Cash credit card and the Capital One Spark Cash for Business. Out of all the credit cards we’ve reviewed, these are the two that have the best options.
If you’re an established business, be sure to check this out: Best Business Credit Cards
Ink Business Cash Credit Card
If your business spends a significant amount on office supplies, telecommunications, gas and restaurants, you may want to give the Ink Business Cash Credit Card a glance. Let’s take a look at everything Ink has to offer.
- Earn $750 bonus cash back when you spend $7,500 on purchases in the first 3 months from starting your account.
- Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year.
- Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all of your other purchases.
- With Zero Liability you won’t be held responsible for unauthorized charges made with your card or account information.
- Fraud Protection ensures your card transactions will be monitored for possible signs of fraudulent activity using real-time fraud monitoring.
- No Annual Fee.
- Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards.
- 0% introductory APR for the first 12 months on purchases.
Capital One Spark Cash
The Capital One Spark Cash credit card is definitely one of the best startup business credit cards on the market. While many business credit cards require you to have excellent credit, the Capital One Spark Cash card does not, so it may be a better option for some of you that want to get your business credit going.
If you look at Capital One Spark Cash reviews, many people are getting approved for $1K-$2K with credit scores in the mid 600s.
With unlimited 2% cash back on all purchases, the Capital One Spark Cash for Business is a great deal on its own and is worthy of being in your wallet. Here’s the benefits you get with the card.
- Earn a one-time $500 cash bonus once you spend $4,500 on purchases within 3 months from starting your account.
- Earn unlimited 2% cash back for your business on every purchase, everywhere, no limits or category restrictions.
- Purchase above your credit limit with no hassle and no over-limit fees.
- $0 annual fee for the first year; $95 after that.
- Free employee cards, which also earn unlimited 2% cash back on all purchases.
- $0 Fraud Liability if your card is lost or stolen.
- Rewards won’t expire for the life of the account, and you can redeem your cash back for any amount.
- No foreign transaction fees.
Full Review Here: Capital One Spark Cash Business Credit Card Review
Can You Apply For Startup Business Credit?
While a lot of people think you need to have an official business to apply for a small business credit cards, that couldn’t be further from the truth. Start-up credit cards can be a solution for anyone who is in business for themself, it doesn’t matter if that’s a full-time job, freelancing, gig work or a side job.
In fact, you don’t need to be incorporated or have a formal business structure, like an LLC or partnership, to apply for this type of credit. Many entrepreneurs today are “sole proprietors, “ which make up over 70 percent of all businesses in the U.S. – and you’ll be eligible to apply for small-business credit cards.
Why get a startup business credit card? There’s a number of reasons why it makes sense to get this type of credit card, let’s explore them.
(1) Help Fuel Growth – A startup business card can help you fuel the growth of your business. If you have a great product or service, you can use that credit card to drive targeted traffic to your offers, allowing you to build revenue and pay that debt back later.
(2) Keep Business And Personal Finances Separate – When you use the card only for business spending, interest and fees on the card can be tax-deductible business expenses. And small-business cards offer rewards, perks and bonuses that rival (and in many cases surpass) those on consumer credit cards.
(3) Leverage The Rewards – Instead of paying cash for the needs of your business, you can put them on your startup credit card and you can earn cash back. For example, if you spend $50,000 on your card and you earn 2 percent cash back, that would earn you an additional $1,000. If you spend $100,000 on your card, a 2 percent cash back rate can earn you $2,000.
If you take advantage of the bonuses, both of those amounts can be greater as both of the business credit cards we recommend give you welcome bonuses in cash for opening an account.
(4) Category Awards – You can also take advantage of the category bonuses business credit cards offer. For example, the Ink Business Cash credit card allows you to earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year.
(5) Starting Business Credit – If you have a growing business, having a business credit card is very important to ensuring you have the funds you need to inject into your business. If your startup business has sales and you have proven the model, you should get a startup business credit card to begin building credit for your business. Be responsible of course, but even if you don’t use the card a lot, you’re building business credit and that’s going to be big leverage as you grow.
Credit Cards For Start Up Businesses
Business credit cards for new business, yes, you should be building your business credit. Every business should have a business credit card, at least one that can be used in times of need. Building your business credit is important, both of these cards will do just that.
If you don’t have a credit card for your business, we recommend giving it some thought.
If you’re already spending thousands of dollars or more a month, yes, get a business credit card and earn cash back rewards.
As long as you’re using your card responsibly, every business owner should have one credit card to use. At the very least, take that opportunity to build your business credit.