Best Credit Cards for Small Business

Small-business credit cards are becoming increasingly popular as a form of business financing, especially for entrepreneurs who may not qualify for standard business loans or have access to networks of wealthy family members, friends, and coworkers. No matter what your company does, a credit card can definitely help – as long as you use it responsibly and avoid making expenditures that your firm cannot afford.

 

Business credit cards help firms and corporations reduce expenses while also providing a variety of business-specific benefits. In today's market, several banks offer business credit cards with numerous benefits.

 

Why Use a Credit Card?

 

A credit card is a financial device that allows you to obtain credit for all of your financial transactions. In layman's terms, a credit card is a loan instrument that permits you to purchase items now and pay for them later. All credit cards have a credit limit that the issuer determines depending on your credit score and eligibility conditions.

 

You walk into a department store, select a pair of jogging shoes, proceed to the payment counter, swipe your credit card, collect the bill and receipt, and leave the store with your purchases. The entire process was simple and just took a few minutes. No one needs to worry if your bank knows and trusts you to refund the money it spent for the shoes.

 

You do not need to go to the bank and explain why you want to borrow money. Instead, you might use your credit card to make purchases of any kind, pay interest solely on revolving credit, and pay off your balance whenever convenient. A credit card has altered people's shopping habits by providing them with easy access to credit. You may have multiple credit cards from different banks, and it is normal for anyone to use a card to pay for items or services.

 

How to select the best suited Credit Card

 

When evaluating small-business credit cards, we consider several essential variables. Those who score the highest on an acceptable blend of characteristics deserve a place on the list.

 

1. Qualification requirements

 

Virtually all small-business credit cards evaluate applicants' creditworthiness. Some candidates are fine with utilizing their personal credit scores to apply, as long as they personally guarantee the account.

 

Other small company credit cards require applicants to have a business credit score before applying. This is a Catch-22 for new firms because it is difficult to establish credit without a credit history. However, there are ways to accomplish this. For additional details, see our post on how to quickly establish company credit.

 

2. Personal Guarantee Requirements

 

If you're looking for your first small-business credit card, look for one that offers a personal guarantee. That is your entry ticket into the world of business credit cards, and it may help you grow business credit over time. But beware. If your account goes late, your personal credit may suffer.

 

3. Welcome Offer (Sign-up Bonus)

 

Many of these cards provide bonus benefits to new cardholders. Typically, these sign-up bonuses, also known as welcome offers or early spend bonuses, necessitate significant upfront investment. 

 

But that's no problem for capital-intensive firms. So, all else being equal, we choose business cards that offer appealing sign-up bonuses.

 

4. Interest Rates & Promotions

 

Carrying a credit card balance is never ideal, but sometimes you have no choice — especially when you're starting a business and need to keep track of every penny.
 

With that in mind, we favor small-business credit cards with low regular interest rates and extended 0% APR introductory offers. The latter is less popular in the business card sector than it is in personal cards, but you can still discover 0% APR rates if you know where to search.

 

Best Small Business Credit Cards

 

To determine which business cards provide the best overall value, we analyzed dozens of popular options and chose cards that fall into eight categories: cash back, travel, no annual fee, welcome bonus, luxury, special financing, average credit, and shipping. These are our top picks.

 

1. Capital One Spark Cash Plus Credit Card

 

If you want to earn a competitive cash-back rate on all purchases, choose the *Capital One Spark Cash Plus, which pays 2% cash back on every qualified transaction.

 

The cash-back programme is uncomplicated, with no bonus categories or spending limits like those found on many other business cards. Business owners can easily receive cash back at any time and in any amount. There is also the opportunity to set up automatic redemption at a predetermined time or when a certain cash-back sum is reached.

 

2. HDFC Infinia Credit Card

 

HDFC Infinia Credit Card has a joining and renewal charge of Rs. 10,000, The network used: VISA.

 

Complimentary Priority Pass Membership: Enjoy unlimited complimentary domestic and international lounge access at over 1,000 airport lounges. Use the refreshment and business centre services provided in these lounges. One positive aspect to note is that these benefits are also available to add-on Priority Pass customers.

 

The HDFC Infinia Credit Card is thought to be one of the top super-premium cards available in India. In terms of advantages, this card ranks first among all of HDFC Bank's credit cards. 

 

3. The Ink Business Preferred® Credit Card

 

The Ink Business Preferred® Credit Card offers rewards for common business expenses, including travel, shipping, internet, cable, and phone services, as well as advertising on social media and search engines.

 

This card offers a large welcome bonus of 100,000 points once you spend $8,000 on purchases within the first three months of account setup. Furthermore, points are worth 25% more when redeemed for travel through Chase Ultimate Rewards®. So the 100,000-point incentive is worth $1,250 in travel.

 

4. Kotak Corporate Gold Credit Card

 

A renewal charge of Rs. 1000. Fuel surcharge remission of 2.5% at all petrol pumps in India for purchases between Rs. 500 and Rs. 3000, with a ceiling of Rs. 3500 per calendar year.

 

The Kotak Corporate Gold Credit Card, a worldwide accepted credit card, has been specifically intended for corporations. It assists Corporates by providing unique kind services such as expense management, consolidated statements and payments, enabling more savings, and providing higher reward points. The Corporate Gold Credit Card is unique due to various factors such as there's an absence of additional charges, it's easy to use, and has a provision obtaining tailor-made benefits and privileges as per your requirements

 

5. The AMEX Platinum Travel Credit Card

 

The AMEX Platinum Travel Credit Card is ideal for business travelers who frequently travel worldwide or domestically. Thus, if you're a high-spender looking for great travel deals, the American Express Platinum Travel Credit Card is an ideal choice. The credit card offers travel vouchers as well as Taj Hotel incentives, which will undoubtedly appeal to frequent travelers and loyal Taj Group of Hotels customers. As a bonus, the cardholder will receive one free domestic lounge access per quarter. 

 

On general spendings, the cardholder can also earn an above-average rewards rate of 0.88% (1 point per Rs. 50 spent; 1 point = ~Rs. 0.44). Cardholders have the option to redeem rewards in travel vouchers, cash, or InterMiles

 

To Sum Up 

 

Business credit cards are designed specifically for business spending, not personal use. However, when applying for a credit card, one of the most important things to remember is to always apply for the cards directly through their official website. Avoid applying for them through online marketplaces or telecallers, as they may then call you constantly to sell other things. Furthermore, all of your critical financial information and papers are not secure with them.