If you’re on the road to starting your small business, you know that financing is no easy feat. Your personal collateral and loans can help with startup costs, but what about day-to-day operations? For these, you’ll want to look into a business credit card.
There are countless national banks and credit card companies, so there are endless options for choosing the right card for your business. Your first step should be research--which card has the best rewards, the lowest APR, best mileage? Depending on the nature of your business, your credit card selection will depend on one or more of these factors.
Take a look at our list of the best credit cards for small businesses in 2016 and choose the card that will do the most for growing your business.
Best for Rewards: Chase Ink Plus Business Credit Card
The Ink Plus Credit Card comes with a huge sign-up bonus--you earn 60,000 bonus points if you spend $5,000 on company expenditures in the first three months. The reward rate for this card is top of the list:
- 2 points per dollar spent at gas stations and hotels up to the first $50,000
- 5 points per dollar spent on purchases on office supplies, phone service, Internet and cable television up to the first $50,000
- 1 point per dollar spent on everything else, with no limit
If you reach the $50,000 spending limit, you receive $3,500 in rewards each year. Points can be redeemed for travel, or you can transfer your points to several different loyalty programs.
If office supplies and monthly bills are the top expenses for your company, this card is your best bet. It lets you set spending caps for employees on extra cards, so you can keep the company budget in check.
Unlike other card issuers, Chase doesn’t report business credit card activity to personal credit reports, unless you default. This keeps your personal credit separate from your business credit.
Best for Fair Credit: Capital One Spark Classic Business Credit Card
If your credit is less-than-stellar, Capital One offers a business credit card that can help you get on track. Some benefits include:
- $0 annual fee
- Free additional cards for employees
- Itemized statements on a quarterly and yearly basis to help balance your books for tax deductions
One downside of the Spark Classic credit card is the low reward rate and high APR. If you don’t want to pay a lot in interest fees, make sure you select this card with the plan of carrying a $0 balance.
However, this card can benefit those who have a hard time qualifying for higher-reward business cards.
Best for Low Interest Rates: Chase Ink Cash Business Credit Card
If you’re looking for a card with the lowest APR, the Ink Cash credit card is the best choice with a 0% introductory APR period for the first 12 billing cycles on transfers and purchases. If you’re an established company, this can help minimize debt accrued in the past.
Once the introductory period is over, the interest rate is still competitively low--as low as 13%, 3 percentage points below the industry average of 16%.
In addition to low interest rates, the Ink Cash business card offers rewards:
- 5% cash back on office supplies and technology services
- 2% cash back at restaurants and gas stations
- 1% cash back on any other purchase
Whether you’re looking for low interest rates, great rewards, or cash back, it’s worth looking into your options with Chase, Capital One, and other issuers to find the best business credit card for your company.