Unsecured Business Credit Cards for Startups

What is an unsecured business credit card? An unsecured credit card does not require a personal guarantee from the business owner.  Small business owners prefer an unsecured credit card. Rest assured, there are no affiliate links in this article.

 

Brad Nakase, Attorney

Email  |  Call (888) 600-8654

Craig is the owner of a local startup catering business, which produces delicious dinners and desserts for the local community. As part of his business, Craig has a few vans which the company uses to deliver meals to parties and businesses around town. For a while, Craig has been considering applying for an unsecured business credit card in order to further build up his company’s credit as well as getting valuable rewards to use toward his business. He has researched some cards and found that certain ones offer travel perks, including gas and vehicle coverage, as well as cash back benefits. Craig thinks his startup business could really benefit from these offers, and he is positive that he can pay back bills on time.

Is an Unsecured Business Credit Card a Good Idea for a Startup?

For individuals who are careful about paying their bills on time, an unsecured business credit card can be a useful method of financing for their business. An unsecured business credit card has the advantage of requiring no money down. It offers short-term funding that provides business owners with thousands of dollars in cash flow. This is a great option for businesses that need a little money right away. Also, if an individual chooses a credit card that rewards spending habits, he or she can gain access to impressive benefits. That said, it can take time to determine the best card for one’s specific needs and spending habits.

To determine the best option without spending a lot of time on the issue, a business owner can review this article for advice on the top five unsecured business credit cards.

The following five cards are the best options for small business owners. By reviewing these options, an individual may determine which option is best for his or her specific situation and business.

The Capital One Spark Cash for Business

For an individual to be approved for the Capital One Spark Cash card, he or she will need to have a good or excellent credit score. Should a business owner qualify for this card, he or she will enjoy access to notable cash rewards and other benefits, which include the following:

  • Unlimited two percent cash back on purchases
  • An early spend bonus of $500 cash back should the business owner spend $4500 in the first three months of having the card
  • Annual fee of $95 waived for the first year
  • Free spending reports and employee cards
  • No foreign transaction fees

A business owner should know that the cash back rewards on the Capital One Spark Cash for Business card do not expire so long as the account is kept open. Also, a business owner can redeem cash rewards as either statement credits or paper checks.

Chase Ink Business Unlimited

To qualify for this credit card, a business owner applicant will need to have an excellent credit score. In terms of rewards, this card is similar to the Spark Cash card. That said, there are some important differences between the two cards that are worth considering. Not only does the Chase Ink Business Unlimited card have no annual fee, but it also offers the following features and rewards:

  • Sign-up bonus of $500 if an individual spends $3000 within the first three months
  • Unlimited 1.5% cash back on certain eligible purchases
  • Free employee cards
  • Introductory APR of 0% for the first year
  • Foreign transaction fees of 3%, as well as cash advance and balance transfer fees of 5%

Similar to the Spark Cash card, this card is fairly simple to use because it has no restrictions, spending categories, or expiration to think about so long as the account remains open.

Chase Ink Business Preferred

Chase offers another unsecured business credit card called the Chase Ink Business Preferred. When compared to the Unlimited card discussed above, this popular card offers additional rewards and benefits. While a business owner will be required to pay an annual $95 fee, he or she will benefit from the following features:

  • A sign-up bonus of 80,000 Ultimate Rewards points (equal to $800 in cash back or $1000 in travel purchases) for spending $5000 in the first three months of having the card
  • Three points for every dollar spent on search engine ads or social media, shipping, travel, and communications (capped at $150,000)
  • One point for every dollar spent on any other purchases
  • No foreign transaction fees

In order to qualify for this card, a business owner will need to have an excellent credit score. Unfortunately, the annual fee cannot be waived. That said, for business owners who ship physical products, travel a lot, and invest in Internet advertising, this card is a fantastic option.

American Express SimplyCash Plus Business

The American Express SimplyCash Plus Business card is simple in structure but offers significant cash rewards. With this card, there is no annual fee and 0% APR for the first 15 months of use. In addition, there are the following features and benefits:

  • 5% cash back on wireless phone service and office supply purchases (capped at $50,000 a year)
  • 3% cash back on one of the following categories of an entrepreneur’s choice: gas, car rental, advertising, hotel, shipping, restaurants, or computer software and hardware
  • Unlimited 1% cash back

For entrepreneurs with good credit scores, the American Express SimplyCash Plus Business card is an excellent choice. It may be an especially good option for a business owner who spends primarily in one area, such as advertising, shipping, or computer software, due to the cash back benefits offered.

Bank of America Business Advantage Travel Rewards World Mastercard

This credit card is an excellent choice for entrepreneurs that spend a lot of time traveling for their businesses. There is no annual fee, and the benefits consist mainly of travel-focused rewards:

  • Sign-up bonus of 25,000 points (equal to a $250 statement credit) if a business owner spends $1000 or more in the first two months of opening an account
  • Introductory APR of 0% for the first nine billing cycles
  • No international transaction fees
  • Three bonus points per dollar spent on travel purchases via the Bank of America Travel Center
  • Unlimited 1.5 bonus points for each dollar used on certain eligible purchases

This card is different from others mentioned previously because the point-based reward system is unlimited. This means that if an entrepreneur spends a lot of money on travel, he or she can earn significant rewards using this card. That said, a business owner will need to have an excellent credit score to qualify for this card.

Summary

It is generally simply and easy to apply for these credit cards. In fact, applications can often be completed online or by phone, taking only a few minutes to submit. However, before a business owner applies for one of these cards, he or she should take the opportunity to explore their options. It is important that an entrepreneur understands how his or her business needs and uses money, so that the business owner can choose the right card for their circumstances.

Indeed, any of these cards may be a good fit, but it is still wise to study each one to pick the best for one’s business.

Please tell us your story:

1 + 3 = ?

See all blogs: Business | Corporate | Employment

What Is a Gap Analysis

What is a Gap analysis?

Gap analysis helps businesses compare current performance with desired goals, identifying inefficiencies. This method aids in developing action plans to bridge performance gaps.
SWOT Analysis Example

SWOT Analysis Example

Conducting an HR SWOT analysis helps identify strengths, weaknesses, opportunities, and threats within and external to an organization. This process aids in developing strategic HR actions aligned with the company's objectives.

Costco Hot Dog Price Story

The story about Costco $1.50 hot dog price began in 1993 when the Costco merged with Price Club. Costco's $1.50 hot dog price remains unchanged in 2024.

Request for Production of Documents, RPOD, CCP 2031.280

Starting January 1, 2020, California's civil litigants face stricter discovery rules under Cal. Civ. Pro. § 2031.280(a). All produced documents must now be labeled by request number, impacting both new and ongoing cases.
What is a default judgment

What is a default judgment

A default judgment is issued when a defendant fails to respond to a lawsuit, allowing the plaintiff to win by default. Understanding this process is crucial for both parties involved in litigation.
What is a quitclaim deed

What is a quitclaim deed

Quitclaim deeds offer a quick way to transfer property ownership without guarantees, distinct from warranty deeds. Ideal for non-sale property transfers among family or into trusts, they require careful legal consideration.
Sole Proprietorship Business License

Sole Proprietorship Business License

Sole proprietorships offer simplicity and fewer formalities for new business owners, with benefits like no separate taxes. Remember, personal and business assets aren't distinct, impacting liabilities and the need for proper licensing.
What is the most important part of your business plan

What is the most important part of your business plan

The executive summary shines as the pivotal element of a business plan, serving as a decisive factor for readers to delve deeper. A comprehensive guide on crafting an impactful business plan, focusing on unique strategies and essential components.
Easy Businesses To Start

Easy Businesses To Start

Unleash your entrepreneurial spirit with these straightforward home-based business ideas, from e-commerce to creative pursuits. Embrace the flexibility and potential for financial independence with diverse options suited for various interests and investment levels.
What is the standard deduction

What is the standard deduction

Understand the IRS standard deduction, a straightforward option for reducing taxable income without needing detailed documentation. Delve into eligibility, amounts for 2023-2024, and considerations for itemizing versus standard deduction.
How to get a business license

How to get a business license

Grasp the essentials of obtaining a business license in California, focusing on local and state-level requirements. Uncover specifics on when and why different types of business licenses are needed.
Why Do Businesses Fail

Why Do Businesses Fail?

Uncover the key factors contributing to small business challenges, including financial obstacles, inadequate management, and flawed marketing strategies. Understand the role of a comprehensive business plan in ensuring long-term success.
What is a BOC 3

What is a BOC 3

Understand the essentials of a BOC-3 filing for transportation businesses in California, detailing the designation of process agents for FMCSA certification. Learn the requirements, costs, and benefits of choosing the right process agent for your business.
Standard deduction vs itemized deduction

Standard Deduction vs Itemized Deduction

Understand the key differences between standard and itemized deductions to effectively reduce your taxable income and potentially save on taxes. Choose wisely to maximize your tax benefits based on personal financial details.
How to calculate net income

How to calculate net income

Unveil the significance of calculating net income for business profitability, a key indicator for financial health and decision-making. Understand the formula and practical applications for determining net earnings.
Itemized deductions

Itemized Deductions: What they mean on a tax return

Optimize your tax return by understanding the differences between itemized and standard deductions, crucial for minimizing tax liability. Learn the benefits and challenges of itemizing to make informed financial decisions.
What are intangible assets

What Are Intangible Assets

Discover the value of intangible assets like patents and trademarks in your business, crucial for strategic and financial planning. Learn how to manage and amortize these non-physical yet essential resources.
What is accounting

What Is Accounting

Understand the importance of accounting in monitoring financial activities and making informed decisions for your business. Gain insight into accounting fundamentals and its role in legal and tax matters.
Dysfunctional family

Dysfunctional Family: Key traits and impacts

Explore the impact of growing up in a dysfunctional family, where constant conflict, neglect, and various addictions shape childhood experiences. Understand common traits, the consequences on children, and the cycle of unhealthy parenting behaviors.
When Was the Great Recession

When Was the Great Recession?

Delve into the Great Recession's timeline, an era of financial distress from December 2007 to June 2009. Understand the causes, including the 2007 housing bubble crash, and worldwide effects.
When Was the Last Recession in the US

When Was the Last Recession in the US?

Review discussions on America's most recent downturn, comparing the impacts and definitions of Covid-19 and the Great Recession. Analyze the significant effects of past economic crises on US policy and business approaches.
What to Invest in During a Recession- 4 Ideas

What to Invest in During a Recession: 4 Ideas

Uncover effective strategies for investing during a recession, assessing personal goals and current market situations. Examine four robust investment approaches to manage through economic declines effectively.
Will the US Get Hit with a Recession in 2024

Will the US Get Hit with a Recession in 2024?

Experts debate the likelihood of a 2024 US recession, analyzing factors like the yield curve and consumer confidence. Predictions vary, with a focus on interest rates and tech layoffs impacting the economy's future.
How Long Do Recessions Last

How Long Do Recessions Last?

Learn about typical US recession lengths and influencing factors, noting recent trends with shorter durations averaging 10 months. Investigate how external factors and government decisions affect recession timelines, comparing historical data.
When Will the Recession End

When Will the Recession End?

Economists predict a mild US recession with limited impact on employment and spending. The duration and impact of the recession depend on Federal Reserve policies and business cycle patterns.

See all blog: Business | Corporate | Employment

© Copyright | Nakase Law Firm (2019)