September 3, 2018 By SmartBiz Team

Small business credit cards help fund small to midsize businesses. In a report from the American Bankers Association, small businesses with business credit cards had more assets, loans, revenue, and employees on average.

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Ask yourself what’s important to your business when searching for a card. Many small business owners agree that discounts and rewards rank high on their priorities for a credit card. Some cards help cut costs and earn money, which improves your bottom line. As long as you use a business credit card with discipline, these cards will send positive card activity to the business credit reporting bureaus. As an extra result, your business’s credit improves. With good business credit, you’re likely to get approval for a favorable SBA loan.

Using Business Credit Cards with Discipline

Like any personal credit cards, small business credit cards require self-discipline and the ability to budget any funds appropriately. Make sure that you understand all of your credit terms inside and out. This includes interest rates, due dates, rewards, and any benefits available with the card. The failure to understand how to use credit cards correctly results in expensive debt and fees that negate any benefits they offer.

Advantages & Benefits of Small Business Credit Cards

Small business credit cards provide your business with a number of advantages. They make it easier to separate your personal and business expenses. Small business cards usually offer a higher credit limit than any personal consumer cards. They give you the ability to manage cash flow, as in most cases you’ll have 20 to 30 days to pay off any business expenses without interest.

Small business credit cards allow you earn rewards like points or cash back on most business expenses. Depending on your card, they’ll come with perks such as travel credits, elite member statuses for airlines and hotels, and free night stays. They’ll provide benefits on merchandise discounts, purchase protections, warranties, and travel insurance. Most cards provide protection against any theft and damage.

Best Credit Card for Cash Back

Some small business owners want to earn cash back without figuring out bonus reward categories and complicated redemption options. The Capital One Spark Cash for Business card is perfect for those people.

As advertised, the rewards are very simple. Your business gets 2% cash back on all purchases, with no limit. Unlike other small business credit cards which reward you more for certain types of purchases, the Spark Cash offers a flat rate for everything you buy. This is an advantage for businesses that spend a lot on a variety of purchases, rather than certain categories.

You’ll also get $500 cash back after spending $4,500 in the first three months of having the account. The $95 fee is waived for the first year. After that, the fee can be offset by spending as little as $4,750 per year on expenses.

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Best Credit Card with No Annual Fee

There are many credit cards available to owners without an annual fee, but the Chase Ink Business Cash card is one of the most rewarding for small businesses. As long as you pay off your bills on time and in full, you’ll get reward value back for no extra costs.

This card allows your business to earn 5% cash back for the first $25,000 spent each year at office supply stores and internet, cable, and phone services. In addition, the first $25,000 spent each year at gas stations or restaurants will earn 2% cash back. You’ll get 1% cash back on all other purchases with no limit.

You’ll get $300 bonus cash back for spending $3,000 in the first three months of having the account.

Best Credit Card for Business Travel

The American Express Business Platinum card is a travel rewards card. It’s intended for small business owners who travel frequency and want rewards. This card rewards cardholders with Membership Rewards points.

The rewards available to cardholders are:

  • 5X Membership Rewards points per dollar on flights and prepaid hotels on the American Express Travel site.
  • 2X Membership Rewards points per dollar on other purchases from the American Express Travel website.
  • 1.5X Membership Rewards points per dollar on eligible purchases of $5,000 or more.
  • 1X Membership rewards point per dollar on all other purchases.

You’ll also get a $200 annual airline credit towards incidental fees like in-flight meals. Although the card has an annual $450 fee, it can be offset by spending as little as $3,704 per year, if you make good use of the benefits. You’ll earn a big welcome offer of 75,000 Membership Rewards Points if your small business spends $20,000 in your first 3 months of card membership.


While researching business credit cards, find the best fit for your unique small business. Some cards offer cash back rewards, while others provide membership points on purchases. Generally, cards that are more rewarding come with an annual fee. However, there are still rewarding no annual fee business cards as well.

Remember to use any business credit cards with discipline by paying off the balance on time and in full at the card’s due date. These are great credit habits to learn and allow your business to earn the maximum value back in terms of rewards and benefits.

See if you pre-qualify