Are you a small business owner or serial entrepreneur looking to fund an upcoming campaign to boost visibility and get new leads? Do you need credit to purchase new equipment at your workplace? We all know that capital is what drives the success of your business, but it can be a challenge for small businesses and entrepreneurs to have readily available. This is where a business credit card comes in.
Whatever your purpose is for a business credit card, it helps to know which credit cards are the best fit for your needs. Since there are dozens of options to choose from, we did the hard work for you and rounded up three of our favorite business-friendly options from American Express.
American Express Blue Business offers a simplistic points-earning rewards system that is beneficial for every type of business owner. The card offers 2 points for every dollar spent, up to $50,000. After you’ve exceeded the $50,000 threshold, you earn one point for every dollar. With the American Express Blue Business card, there’s no hassle in making purchases in certain categories or paying an annual fee. This card is best for entrepreneurs who don’t plan to use it as their go-to source for cash flow because of the $50,000 limit to earn double points.
If you plan to use your business credit card extensively and want to be rewarded for your expenses, consider applying for the American Express Business Gold Rewards. This card is touted for its point-earning flexibility as cardholders can choose the category in which they earn the most points. This, in turn, allows you to maximize your savings.
With a 50,000 point sign up if you spend $5,000 in the first three months and a waived annual fee for the first year, this card definitely offers great benefits. You can choose to earn 3 points for every dollar spent in a category of your choice, including advertising, airfare, gas, shipping, and computer software. You’ll earn 2 points for every dollar spent on the remaining category and a point for every dollar on other purchases.
The biggest difference with this card is that it’s not a charge card. You cannot maintain a balance on this card which means the full amount must be paid after you receive your statement. Some purchases may be eligible for Pay Over Time which allows for extended payments.
Saving money tends to be the primary goal for many business owners. If you want to save as much as possible, the American Express SimplyCash Plus card makes that happen. The card offers 5% cash back on wireless telephone services and purchases made at office supply stores. You will earn 3% cash back from a category that you choose. Options include:
- Direct hotel purchases
- Direct airline purchases
- Car rentals
- Gas stations
- Select advertising
- Computer hardware, software, and cloud computing purchases
If your business makes significant purchases in one of these areas you can save a good chunk of money. Note that cash back perks stop once you spend $50,000 in each category. Once you top $50,000 in expenses, you only earn 1% cash back on all purchases. The perks reset each anniversary year.
Choosing a Business Credit Card
When choosing the right credit card, be sure to think about the needs of your business. Consider what you will be purchasing and how often you plan to use the card. These factors will allow you to choose the best business credit card for your company.
If your business relies heavily on travel, get a card that rewards you for buying plane tickets and traveling. If you purchase tons of inventory, a cashback on purchases card will help you earn money on the materials you need.
At the end of the day, finding the best business credit card really comes down to what you need, what you buy for business, and your credit eligibility. Sit down and evaluate what you need from your credit card, and get a rough idea for what you can realistically apply for.
Most business credit cards require a 600+ credit score for approval, so make sure you know where you sit before you apply. If you sit below the credit line, there are still options for obtaining a business credit card, but you will probably have to put up collateral or start with a card that is loaded with your upfront funds. These cards can help you raise your credit score, so you can reapply for better cards after your credit score goes up.
Which AmEx business cards do you currently use? Leave us a comment and let us know!
Gary Wilkinson is a 27-year-old internet marketer from the north of England, His company Link Kings specializes in link building services for a number of high profile clients.