Best credit cards for small business

Pop quiz: What are the two fundamental ways that business credit cards can help your business?

According to Entrepreneur Magazine columnist David Newton, emerging businesses should use credit cards for two primary functions: asset acquisition and working capital. For assets such as computers, furniture or vehicles, zero APR credit cards offer some of the least expensive methods to spread out payments on new gear over 6 months or longer, provided there is enough cash to pay off the debt before the promotional period expires.

Meanwhile, a growing number of established companies continue to funnel their working capital through business credit cards to earn rewards points and miles as well as to even out cash flow and streamline expense reporting. Processing working capital through a rewards credit card can generate an extra stream of revenue for a young and hungry company. Credit card rewards can include cash rebates, which reduce your bottom line, and free travel, essential for putting you or your key people in front of clients and vendors.

From those two perspectives, the editorial staff presents 8 of the best business credit cards and charge cards on the market:

Ink Cash Business Card from Chase

If you prefer counting cash to tallying rewards points, Chase offers a version of its Ink business credit card with an easy-to-track rebate program. Earn up to $200 in bonus cash back after you spend $3,000 in your first 3 months from account opening with Ink Cash Business Card, then keep earning as much as 5 percent in rebates in featured categories on the first $25,000 spent annually at office supply stores, and on cellular phone, landline, internet, and cable TV services.

Starwood Preferred Guest® Business Credit Card from American Express

Road warriors swear by the Starwood Preferred Guest Business Credit Card from American Express, which offers rewards points good toward nights at Westin, Sheraton, W Hotels and other Starwood properties. Signing up for the card nets you a bonus big enough toward nights at the Westin New York at Times Square.

Capital One® Spark® Cash for Business 

If you have excellent/good business credit, you may qualify for one of the best cash back credit cards on the market. Capital One® Spark® Cash for Business offers a straight 2-percent cash back on every purchase and a reasonable variable APR. This card gives you flexibility to float a balance when necessary, excluding any minimum payments that are due.

The Plum Card® from American Express OPEN

American Express re-imagined its classic charge card for today's business, blending a trade discount for early payment or a cushion of up to 60 days to pay off a balance without interest, or both each month. With The Plum Card from American Express OPEN, you can set your own billing cycles and enjoy the security of separate employee cards. Your first year pay no annual Membership fee, then pay $250 annually. Employee cards do not carry an annual fee. Membership includes access to the OPEN Forum®, a place where you can collaborate with other business owners on new ideas and tactics. Terms and Restrictions apply.

FNBO Business Edition Visa

Maybe there's something in the water in Omaha. It's not just the home to notoriously frugal billionaire Warren Buffet, it's also the headquarters for retail bank card powerhouse FNBO. The FNBO Business Edition Visa Card carries one of the lowest variable interest rates of any business credit card on the market, with APRs starting just below 10 percent for highly qualified applicants. FNBO's online banking system stores up to seven years of statements, making your bookkeeper's life easier, too.

TrueEarnings Business Card from Costco and American Express OPEN

Convert your Costco membership card into a TrueEarnings Business Card for some of the best gas rebates in the country. You're already paying a few cents less per gallon than the competition when you fill up at this national warehouse club. Their partnership with American Express offers you 4 percent cash back on gasoline at U.S. gas stations, including at Costco, for purchases up to $7,000 per year (1% thereafter), 2 percent cash back on eligible purchases at U.S. restaurants, 2 percent cash back on eligible travel purchases, including at Costco and 1 percent on other eligible purchases including at Costco.

Ink Bold Business Charge Card from Chase

Ink Bold Business Charge Card combines the simplicity of a business charge card with the benefits of Chase's Ultimate Rewards program. As a new cardholder, you can earn up to 50,000 bonus points after you spend $5,000 in the first three months of account opening. Eligible business purchases earn points, which you can redeem for rewards, travel or employee rewards.

U.S. Bank Visa Platinum

Even though U.S. Bank might not have a branch near your office, they can still offer your business some of the lowest variable APRs for business credit cards on the market right now for those with excellent credit. The no-annual-fee U.S. Bank Visa Platinum credit card offers a low introductory APR on purchases and balance transfers.

The bottom line

Before completing any credit or charge card application, be aware of the impact of a new account on both your personal and corporate credit profiles. Your brand new business will need a personal guarantee for you to start carrying a company credit card. That means you're on the hook for any charges left unpaid if your venture fails.

As your company grows its own credit report, you can graduate to a business credit card that relies less on your personal credit score. Pick an account with rewards that outweigh fees. Don't run up more credit than you can afford to pay off. Finally, prepare to start out with a small line of credit, and let it grow in tandem with your small business.

Important Note! The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we can not guarantee the accuracy of the information in this article. Please verify all terms and conditions of any credit card prior to applying.

Disclaimer: This content is not provided or commissioned by any company mentioned in this article. Opinions expressed here are author's alone and have not been reviewed, approved or otherwise endorsed by any such company. This site may be compensated by companies mentioned in the article through advertising, affiliate programs or otherwise.

About the Author


Curtis Arnold, a nationally recognized consumer educator and advocate, has been educating consumers about credit cards since 1998. New! Curtis is the author of 'How You Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line' (FT Press, 2008). He is also the co-author of the upcoming Complete Idiot's Guide to Person-to-Person Lending (Alpha Books/Pengiun Group USA, April 2009), a contribitor to The Ultimate Allowance (InnerWealth Publishing, 2008) and is extensively featured in 42 RulesTM for Driving Success With Books (Super Star Press, January 2009).