*Editorial Note: This content is not provided or commissioned by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.
This article was last updated Feb 06, 2015, but some terms and conditions may have changed or are no longer available. For the most accurate and up to date information please consult the terms and conditions found on the issuer website.
There are close to 28 million small businesses in the United States, and approximately 543,000 small business start-ups each month. A discouraging statistic shows that 7 out of 10 new employer firms survive the first 2 years, and only 25% stay in business for 15 or more years.
Starting a small business takes hard work, long hours, and money! That’s why we created our newest infographic, Survival Kit: Credit Cards and Your Small Business, to help make your small business a success with our survival checklist and overview of large-bank business credit card programs.
Survival Check List
We recognize that choosing the best credit cards to fit the needs of your company can be a complicated process. Our Survival Check List breaks down what features to look for, including:
- Carrying Costs. Credit cards come with all sorts of fees such as the annual fee, over-limit, cash advance, and balance transfer fees. Don’t pay to carry unless the rewards outweigh the cost to carry.
- Rewards. We believe everyone should earn rewards for their purchases. Make sure you choose a business card that earns you the most rewards on the purchases you plan to make for your business needs.
- Number of Cards. This is an important feature for businesses that want their employees to carry an employee business card.
- Spending Limits. Carrying a card that limits how many rewards you can earn won’t do you much good if you know you will spend more than the set limitations. For example, one credit card limits bonus rewards to $25,000 per year; after that, you only earn 1%. That’s not good.
- Tools and Features. Most business cards come with tools that will help you run your business, such as tracking business expenses and setting employee spending limits.
- Protections. Not all business cards offer the same protections as personal credit cards, which have to comply with the CARD Act, so choose wisely.
Credit Cards for Your Small Business
Business credit cards can be a valuable tool for your business, and could also be detrimental if not utilized. Roughly 7% of all start-up capital comes from credit cards, making credit cards the third most popular business financing choice after retained earnings and bank loans.
Most of the major banks offer business credit cards that are designed to assist with the challenges that come with running your own business. Here are a few of the business credit card programs offered and a list of our favorite features
- Capital One Spark Business Credit Cards
- Free employee cards
- $0 fraud liability
- Year-end summaries
- Extended Warranty Protection
- Travel and emergency assistance
- No Foreign Transaction fees
- Chase Ink Business Card Program
- Free employee cards
- Rewards program available
- EMV equipped
- Roadside dispatch
- Travel protection
- Purchase protection
- American Express Corporate Cards
- Expense reporting
- Discounts and rebates for services
- Travel and emergency support
- Membership Rewards program
- OPEN Savings benefits
- Purchase protection
Keeping Business and Personal Finance Separate
Every small business owner can agree that keeping business and personal finances separate can be a tricky process, but are interrelated to a certain degree. One key factor to ensure success is to arm yourself with information. That means surrounding yourself with a team of experts, maintain records, and use the resources available to better manage your finances.
Small businesses are the foundation of the American economy. They create jobs, support communities, and encourage entrepreneurship. It’s important to take advantage of the resources and tools available to set your small business up for success.