Published By Janet Gershen-Siegel at July 16, 2018
Written by Janet Gershen-Siegel
Do you want the best Amex card for small business? Then read on. We have got you covered!
Per the SBA, business credit card limits are 10 – 100 times that of personal cards! This shows you can get a lot more money with corporate credit. And this also means you can have personal credit cards at stores, and now have an additional card at the same stores for your small business. And you will not have to provide collateral, cash flow, or financial information in order to get small business credit.
Perks vary, so make certain to pick the advantage you prefer from this selection of possibilities.
For an introductory 0% APR period, we like the Blue Business ℠ Plus Credit Card from American Express. It has an introductory 0% APR for 15 Months. Earn double points on routine business expenses up to annual limit. The normal APR is 12.24% – 20.24% (variable).
Get it here: https://creditcard.americanexpress.com/blue/
For Travel Points, we prefer the Gold Delta SkyMiles Business Credit Card from American Express. Get 30,000 bonus miles after you make $1,000 in purchases in your first three months. Terms and limitations apply.
Also earn a $50 statement credit after you make a Delta purchase with your new card within your first 3 months. Earn two miles per dollar spent on purchases made straight with Delta. Earn one mile on each qualified dollar spent on purchases.
Check out the Business Platinum Card from American Express. Travel benefits including access to these airport lounge networks:
You also get Gold Status when you sign up for the Starwood Preferred Guest program. There is also a $200 annual air travel fee credit.
There is a $100 credit towards the Global Entry application fee. This also includes access to TSA PreCheck program. Get one point for every dollar spent on most purchases. You get 1.5 times the points on charges of $5,000 or more on qualified purchases. However, this is up to one million additional points yearly.
You get five points per dollar spent buying flights and prepaid hotels from the American Express Travel site.
Investigate the Blue Business Plus Credit Card from American Express. It has a 15-month initial 0% APR offer. There is no annual fee. Right now companies can get double points on the initial $50,000 in purchases each year.
Get it here: https://creditcard.americanexpress.com/blue/
Check out the SimplyCash Plus Business Credit Card from American Express. You can earn as much as $400 cash back. Earn a $200 statement credit after spending $5,000.
You get 5% cash back at US office supply stores and on wireless phone services from US service providers. However, this applies to the first $50,000 of annual spending.
You also get 3% cash back on spending category of your choice, from eight distinct categories. These include airfare, gas, advertising and computer purchases. However, it applies to the first $50,000 of yearly spending. And also you get 1% cash back on all other purchases.
Consider the Business Gold Rewards Card from American Express OPEN. You can earn 50,000 Membership Rewards points after $5,000 in purchases on the card within first three months. Get three points on your choice of five categories. Also, get two times the points on the remaining categories. In addition, get one point per dollar on all other purchases.
It has a $0 yearly fee for the first year. However, after that your yearly fee climbs to $175.
Also, check out the Business Platinum ® Card from American Express OPEN. Get as many as 75,000 Membership Rewards points upon account opening.
You can also earn 50,000 Membership Rewards points after spending $10,000. Also, get an extra 25,000 points after spending $10,000 more on all on qualifying purchases in the first three months. Also, you can get five times the Membership Rewards points on flights and pre-paid hotels on amextravel.com.
However, it has a $450 yearly fee.
In case the best Amex Card for small business somehow doesn’t work for you, try other cards. Advantages vary, so be sure to choose the reward you prefer from this collection of alternatives.
For a 0% APR time frame, we like the Ink Business Cash ℠ Credit Card. Also, you pay no annual cost. It’s got an interest-free period. It has flexible cash-back rewards. There are spending limits for your employees. However, you will need a credit score of 690 or better.
Company Credit Cards for Fair Credit
For Fair Credit, we like the Capital One Spark Classic for Business. It has no annual fee. There are cash-back rewards. However, you will need a credit score of 690 or better.
KEEP IN MIND: the standard APR is 23.99% variable APR.
Make sure to check out the Ink Business Preferred Card from Chase. Earn 80,000 bonus points after you spend $5,000 on purchases in your initial 3 months from account opening.
Earn three points per dollar on the first $150,000 spent in combined purchases on travel, shipping purchases, internet, cable and phone, advertising purchases made with social media sites and search engines. However, this is for each account anniversary year.
Also, earn one point for each dollar on all other purchases. There is no limit to the amount you can earn.
For Low APR/Balance Transfers Business Credit Cards, we prefer the U.S. Bank Business Edge Platinum. So you begin with twelve months of 0% APR financing on new purchases and balance transfers. There is a 3% balance transfer charge.
After that, the purchase APR is a variable 10.49% – 18.49%, which depends on creditworthiness. There is no yearly fee. This card is just available to those with great or excellent credit. However, there is no rewards program for purchases.
Check out the Wells Fargo Business Secured Credit Card. It allows cardholders to secure a credit limit of $500 – $25,000. The amount offered is the same as the amount of cash you provide to secure the line.
Your purchase APR rate can be as low as a variable 13.15%. The yearly fee is $25. The more cards you have, the more expensive your annual fee is going to be.
This card lets company owners with inadequate personal credit to obtain a card to make purchases and establish business credit.
However, the card will only report to the personal credit bureaus if you default or are overdue on payments.
Take a look at the Bank of America Business Advantage Cash Rewards MasterCard Credit Card. With it, you can get a $200 statement credit after $500 in purchases during 60 days of account opening.
You also get 3% cash back on purchases at filling stations and office supply stores. However, this is as much as $250,000 annually.
Also, you get 2% cash back on purchases at eateries, and 1% cash back on all purchases. There is no yearly fee. It is offered to applicants with outstanding credit.
However, you can only redeem your cash back in $25 increments.
Furthermore, consider the Spark Cash Select from Capital One. So you get 1.5% cash back on all purchases, without limitations.
New cardholders can also get a $200 cash bonus once they spend $3,000 on new purchases during the first three months of account opening. New customers also get initial APR of 0% on purchases for nine months. Also, there is no annual fee.
The very first thing you can do, and it’s easier said than done, is to have patience, and establish credit worthiness for your company in the same manner that you have established your personal credit history. For most businesses, this means settling your debts promptly, plus keeping in business for some time, to develop a record of creditworthiness.
In order to get rid of the sticking point of a personal guarantee, you will need to show the bank that your company is robust, that it can generate consistent profits, it has a health cash flow, and the business has a sparkling repayment history. If all of these can be verified, it will be a lot easier to find a business credit card without a personal guarantee.
Here are steps you can take:
Distinguish yourself from your small business. This means you can really help your cause by incorporating or becoming a limited liability company (LLC). This is an independent entity from the owner( s) and it means you must register for a different identification number with IRS. If your small business is already an LLC you can skip this step altogether.
Get several company credit cards with personal guarantees. The ones with high spending limits will be better for they are the ones reported to the business credit bureaus. Make certain when you obtain these products, they have the personal guarantee removal feature built in. Keep your credit utilization at one third of your credit ceiling or less. Pay promptly each time.
Don’t forget to make use of these business credit cards to make your business’s more sizable orders. These purchases, in combination with a low revolving debt and of course timely payment will show to the financial institution that your small business can take care of its financial resources effectively. It will also persuasively show that the available resources your business brings in suffices to cover debts and more.
Make sure that your personal credit history stays spotless. Eventually (six months– to one year), you can file a personal guarantee removal request for these preexisting business credit cards. The bank will hold an account review, but they might also investigate your private credit report. If the bank approves your request then you have achieved your objective. If the bank refuses, don’t give up, just go to the next step.
You can choose to apply for third-party guaranteed lending. For instance, this can be an SBA loan, for funds. Settling such a loan will help you grow your business credit score. You can also make an application for a business credit card from a particular store. These store credit cards ordinarily do not call for a personal guarantee. Select a store where your small business makes purchases frequently and of course do not forget about those timely payments!
These store credit cards, together with an SBA loan will grow your PAYDEX score provided by Dun and Bradstreet. If you are unfamiliar with the terminology, the quick version is that PAYDEX is for small businesses what FICO is for consumers. Store credit cards will grant you from the start an additional fringe benefit; they will reduce your individual liability for your business debt.
Ask the financial institution again to take off the personal guarantee clause or make an application for new company credit cards without a personal guarantee, after you have generated an 80 PAYDEX score under the above conditions. Your opportunity to acquire such credit cards will increase significantly.
Your absolute best Amex card for small business will hinge on your credit history and scores. Just you can determine which perks you want and need. So make sure to do your homework.
And, as always, make sure to build credit in the established order for the maximum, fastest benefits. Check out how this will help your company get business credit cards.