Want to Boost Your Business: Find 5 Best Business Credit Cards for Startups?

Business Credit Cards For Startups

MLMFB.COM - Starting a business, not only requires willingness or ideas, but also requires the capital. If you are a beginner who has just a little capital, don't be worried. You can use a credit card. There are many business credit cards for startups, of course, with various advantages and various promos that will facilitate you. Credit cards are a flexible funding source. To get a credit card there is no collateral, and there is no need to survey home, only survey by telephone. Therefore, you must know what the best business credit cards for startups are.

Is It Possible to Use Business Credit Cards for Startups?

When you do not have collateral assets for loans to banks, one alternative is to use a credit card without the collateral. So, it is possible to use a credit card as a business capital. You can use it as a source of funds to finance your business. Here are the wise steps to using a credit card:

  1. Make a careful calculation
    Get used to making mature financial calculations before you use a credit card for business capital. Do you really need business capital from a credit card? Are you able to pay bills every month? Does your business profit exceed the interest rate of the credit card? And other questions that you must consider first.

  2. Pay attention to the detail of credit cards
    If you want to use a credit card for business capital or other purposes, you must pay attention to the details of it. The things you must pay attention to are the limit, the due date, the interest, the rest of your balance, and others. Pay your overall debt every month before the due date. Use credit cards below the limit to avoid administrative fines.

  3. Pay attention to the character of your business
    Before you use a credit card for business capital, you must pay attention to the character of the business first. Can your business provide fast cash? Or is a long-term tempo needed? You need to recognize the type of your business first. So, you know what to do when the due date of your credit card comes. 

How to Use Business Credit Cards for Startups

The main function of a credit card is as a payment. However, actually, credit cards can also function as a source of funds for your business. Here are how to use a credit card:

  • Pay attention to the credit card limits Each credit card has a limit or usage limit. Well, this limit will affect your plan to open a business using a credit card. The higher the limit, will be the greater your chance. It is not impossible if you have a high credit card. You can take loans of up to hundreds of millions especially if you are diligent in paying bills on time. The bank's trust in you will be stronger.

  • Do the calculation simulation
    This will be useful as an overview of your ability to pay bills. You have to do calculations like the amount you will borrow. The main bill is the amount of the loan divided by the length of the installment. Then, calculate interest with the number of interest times the number of loans. Your total installments are the sum of the loans divided by installments and loans multiplied by interest. Of course, your income must be greater than the calculation of installments. At the very least, you have to have a double profit. So, your business will continue to run. That is why you need to think about a lot of things before starting a business with a credit card. This is to avoid you from the risk of getting into debt.

  • Think of the risks of the credit card
    Credit card debt can threaten you to risk getting into debt. You must be very careful about managing your finances. You need to think about a plan wisely before making a debt decision from a credit card. 

5 Best Business Credit Cards for Startups You Can Choose

There are lots of business credit cards, especially those specifically structured to benefit startups. Here they are:

  1. Chase Ink Business CashSM
    Chase Ink Business CashSM is the best startup credit because it provides the highest value for startup. This card does not have an annual fee. This card also offers $ 500 cash back and gives 1% - 5% cash back on regular business expenses. This card is best for startups with related office or travel costs.

  2. Capital One Spark Miles
    This card offers several prizes in the form of points to travel by plane. So, this card is great for startups who often need air travel.

  3. American Express Simply Cash Plus
    American Express Cards Simply Cash Plus is a flexible card that offers a flexible cash back gift program. The Simply Cash offers a cash back prize of between 1% and 5%. This makes the card perfect for startups who want the flexibility of cash back.

  4. Capital One Spark Classic
    The Capital One Spark Classic credit card is one of the best business credit cards for startups whose owners are not the main borrowers. You only need a 625+ credit score to qualify. This card is easier to get, but the benefits and rewards are a little lower.
    The Capital One Spark Classic Card offers a cash prize program. For every dollar spent on a card, you will receive 1% of the money back. Money back can be issued as cash, checks or credit statements. This gives you the opportunity to get small rewards when you build your personal and business credit.

  5. American Express Blue Business Plus
    This card offers continuous rewards of 1x - 2x points per dollar that you can spend. This is a good choice for startups who need to cover short-term expenses. The American Express Blue Business Plus card gives the holder a 2x point prize for every dollar spent in the first year. The prize is up to $ 50,000. After the $ 50,000, the prize rate drops to 1x per dollar spent.

Using business credit cards for startups is the best solution to start a business. But, don't forget that when you have decided to use a credit card, that means you have dependents that must be paid off. Do not hesitate to consult with experts, and really think about any of your decisions.

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