Financing is a common headache most business startups have to overcome in their early stages. If you require a capital boost to help you improve your small business cash flow, you should consider applying for unsecured business credit cards for startups.
The business credit cards for startups and small businesses have similar terms and conditions to personal credit cards, but with some business-centered features helpful to entrepreneurs. The business cards will also help you build your business credit history, which will enable you to find better interest rates on other business financing options.
Nevertheless, you should carry out thorough research to find the best business startup credit card for your financial needs. We recommend that you review your business needs before you start looking for a business credit card.
Some unsecured business credit cards for startups are better suited for entrepreneurs who travel a lot while others are best for business owners interested in cashback rewards. We bring you some of the best unsecured business credit cards for small and medium businesses to help you improve the cash flow of your startup.
- The 8 Best Unsecured Business Credit Cards For Startups
- 1) Capital One Spark Classic Card
- 2) Credit One Bank Unsecured Platinum Visa
- 3) The Blue Business Plus Credit Card From American Express
- 4) American Express Blue Business Cash Card
- 5) Ink Business Preferred Credit Card
- 6) American Express Business Gold Card
- 7) Business Platinum Card from American Express
- 8) Capital One Spark Miles Select for Business
- Why Apply For The Best Unsecured Business Credit Cards For Startups?
The 8 Best Unsecured Business Credit Cards For Startups
1) Capital One Spark Classic Card
Top on our list of the best unsecured business credit cards for startups is the Spark Classic from Capital One for its building-credit ability. As much as financing is the biggest problem for startups, building credit is also necessary for small businesses.
Spark Classic main goal is to help businesses improve their financial health while building credit and earning rewards. The card targets individuals with fair or average credit. It is a good option for people who have defaulted on a loan in the past five years or those with a limited credit history of three years or less.
Capital One’s Spark Classic has a simple reward program that offers one percent cash back on all purchases. You can redeem the rewards at your convenience as a check or statement credit. The card further allows you to use an automatic redemption trigger that enables you to redeem rewards at a specific time each year.
The rewards you earn will not expire as long as the card is active. Spark Classic from Capital One comes with several perks that include free employee cards, fraud coverage and alerts, account and business management. It also comes with rental collision coverage, travel assistance, roadside assistance, and Eno Capital One’s 24/7. The card does not have annual fees or foreign transaction fees.
- $0 annual fee
- No foreign transaction fees
- 24.49% regular APR
- Account and business management
- Fraud coverage and alerts
- Free employee cards
2) Credit One Bank Unsecured Platinum Visa
People with bad credit have limited options when it comes to unsecured credit cards that accept low credit scores. The unforgiving part with cards that accept bad credit is the lack of rewards. The Credit One Bank Unsecured Platinum Visa is a low credit score credit card for business startups without an established credit history.
The card enables you to build your history while earning rewards. The annual fees range from $0 to $99 with the first being $0 to $75 and the purchase APR is 20.24% to 26.24%.
Credit One Bank Unsecured Platinum Visa has a tiered reward system that depends on your creditworthiness. You will get one percent cash back on eligible purchases, including gas, groceries, cell phone services, and internet services, and 1.1% cash back on eligible restaurant purchases.
Individuals interested in this card can go through a pre-approval process to find if they qualify for the card without harming their credit score. The card has a zero liability policy that protects you from unauthorized purchases. You can also change the date of payment after the first payment by up to six days before or after the initial date.
- $0 to $99 annual fee
- 20.24% to 26.24% variable purchase APR
- 1% cashback on eligible purchases
- 1.1% cashback on eligible restaurant purchases
3) The Blue Business Plus Credit Card From American Express
The American Express Blue Business Plus Credit Card is a good option if you have a good credit score. The card does not have annual fees, which makes it beneficial for businesses looking to save money. It also comes with a host of benefits that allow you to earn cashback with your everyday purchases.
The card offers two reward points for every dollar you spend, which makes it one of the best reward-based unsecured business credit cards for startups. Earning and redeeming points is not complicated. You will earn one point for every dollar you spend past the first $50000 annual spending.
You do not have to pay interest for your purchases. Blue Business Plus credit card offers zero interest on purchases for 12 months, after which the regular 13.24% to 19.24% becomes applicable. The card further comes with a 2.7% foreign transaction fee after conversion to US dollars. The card comes with additional benefits that include, 24/7 global assist hotline, car rental loss, and damage insurance, Amex offers, purchase protection, employee cards, and extended warranty.
- 2 membership rewards points per dollar on the first $50,000
- 1 membership reward point per dollar after passing $50,000
- Zero-interest rate for the first 12 months
- 13.24% to 19.24% variable APR rate
- Secondary car rental damage and loss insurance
- 2.7% foreign transaction fee
4) American Express Blue Business Cash Card
The American Express Blue Business Cash Card is almost similar to the Blue Business Plus Credit Card. The main difference is that the Express Blue Business Cash Card rewards are in cashback rather than membership rewards points.
The cardholders get two percent cash back on the first $50,000 purchase and one percent cash back thereafter. The cashback rewards occur automatically as statement credits. American Express Blue Business Cash Card does not have an annual fee, which adds to business savings. It also comes with a zero interest rate for 12 months and thereafter charges 13.24% to 19.24% variable APR.
- $0 annual fee
- 0% APR for 12 months
- 13.24% to 19.24% variable APR rate
- 2% cashback on first $50,000 purchases
5) Ink Business Preferred Credit Card
Ink Business Preferred Credit Card is one of the most lucrative unsecured business credit cards for startups in the marketplace. The card is perfect for businesses that spend a lot of money and need to earn back from their purchases.
It comes with a generous three-point reward per dollar on the first $150,000 you spend on shipping, travel, phone services, cable, social media, and search engine advertising purchases. A business that takes full advantage of the reward program will earn 450,000 points that can translate into $4,500 if you redeem for a baseline statement credit.
Ink Business Preferred Credit Card further allows cardholders to redeem points through Chase Ultimate Rewards and get a 25 percent bonus. The travel bonus reward would increase the value of your points to $5,625.
Cardholders also enjoy additional benefits that include trip cancellation and interruption for up to $5,000, cell phone insurance of up to $600, primary rental car insurance, and employee cards. The card further offers generous 100,000 welcome bonus points if you spend $15,000 within the first three months.
- Generous 3 points per dollar for the first $150,000 purchase
- Trip cancellation and interruption for up to $5,000
- Cell phone insurance of up to $600 per claim
- No foreign transaction fees
6) American Express Business Gold Card
Every startup and business has a unique financial requirement and the American Express Business Gold Card offers an opportunity to customize the cashback to suit every business needs. The card has a unique, custom approach that allows businesses to generate four points per dollar automatically on the eligible purchases they spend mostly on each billing cycle.
The four points apply to the first $150,000 in combined purchases from the top two categories. All other purchases will earn one point per dollar. Cardholders will also earn membership reward points for every dollar spent. You can use the card when booking travel by transferring the points to hotel and airline partners.
The American Express Business Gold Card factors in two categories for four points reward from airfare, U.S. advertising purchases, technology purchases restaurants, shipping, and U.S. gas stations. You can earn 70,000 membership reward points if you spend $10,000 on eligible purchases within the first three months of card membership.
The cardholders can redeem points to book flights and earn 25 percent of the points back. That said, the card comes with an annual fee of $295.
- $295 annual fee
- 4 points per dollar reward
- 1 point per dollar on all other purchases
- Custom reward categories
- 70,000 membership reward points for $10,000 eligible purchases
7) Business Platinum Card from American Express
You will like the Business Platinum Card from American Express if you are looking for a platinum card that offers special benefits to business people. The card is not a low-maintenance card, but its benefits easily exceed the $595 annual fee.
The Business Platinum Card is effective for business travelers who frequently travel by air. It allows entrepreneurs to earn five points per dollar on flights and lounge access. Cardholders can access Delta Sky Club, Priority Pass, and Centurion Lounge. Furthermore, you will get 1.5 points per dollar on every eligible purchase of at least $5,000 and one point on all other purchases.
Business Platinum Card from American Express is one of the best high reward unsecured business credit cards for startups that allows businesses to earn up to one million additional points annually. It has a welcome bonus of 100,000 reward points if you spend $15,000 within the first three months on eligible purchases. The card offers access to over 1,200 airport lounges through America Express Centurion Lounges, Priority Pass, and Delta SkyClubs.
- $595 annual fee
- $200 annual credits for dell purchases
- $200 annual credits for incidental airline fees
- 100,000 welcome membership bonus points
8) Capital One Spark Miles Select for Business
Capital One Spark Miles Select for business is a low-maintenance credit card that rewards you for every dollar you spend. The card does not have annual fees, which makes it perfect for startup businesses with limited resources. It also comes with a nine-month zero interest APR holiday for greater savings.
The card features a 20,000-mile welcome bonus once you spend $3,000 within the first three months. It is one of the best low-maintenance unsecured business credit cards for startups that spend about $1,000 every month on their purchases. Furthermore, the card allows businesses to invest in equipment and pay the balance over nine months without accruing interest. Cardholders earn 1.5 miles per dollar every time they use the card.
- $0 annual fee
- Zero deferred interest for 9 months
- 1.5 miles per dollar on every purchase
- 20,000 miles welcome bonus once you spend $3,000 in the first three months
Why Apply For The Best Unsecured Business Credit Cards For Startups?
The unsecured business credit cards for startups offer alternative capital sources to entrepreneurs with a good credit score. Some cards do not have annual fees while others come with deferred interest APR for up to twelve months. You can use the cards with deferred interest to make large purchases and pay over several months without paying interest.
The cards further come with special offers that allow entrepreneurs to access exclusive benefits like travel discounts. Some of the credit card benefits you will enjoy include:
- Cash flow benefit – Capital shortage is a common problem with most startups. Unsecured business credit cards offer short-term credit that can help you overcome your immediate financial need.
- Keep business and personal finances separate – It is a tall order for entrepreneurs to keep personal and business finances separate in the early days. A business credit card allows you to keep personal and business expenses separate for tax purposes. It is easier to track business expenses if you have a dedicated for your business expenses.
- Get rewards – Businesses usually spend a lot of money on hardware and equipment. Most business cards reward cardholders when they make large purchases. You can redeem the rewards for business trips, which allows you to save money.
Every entrepreneur must have a dedicated business credit card. The best unsecured business credit cards for startups offer several benefits: improved cash flow, rewards for your purchases, and money management. However, you must review different card features to find the best card for your business needs. Some cards have better rewards while others do not charge annual fees.