Using a Credit Card to Fund Your Business—An Ultimate Guide
Tricia has nearly two decades of experience in commercial and federal government lending. Her expertise is highlighted throughout small business loan content on Fit Small Business.
Benilyn has over a decade of experience as a banking officer. Her expertise is featured throughout Fit Small Business in personal finance, credit card, and real estate investing content.
This article is part of a larger series on Best Small Business Credit Cards.
A business credit card can be a great source of funding for your small business, especially if you cannot yet qualify for a business loan. Business credit cards can provide immediate working capital whenever you need it, and most offer rewards on purchases. Using a business credit card can also help you build your business credit, allowing you to access a wider range of business financing options in the future.
Here are a few good reasons to use a credit card to fund your business:
- You need less than $50,000 in financing: Assess what purchases you plan to make with the card carefully. Most small business credit cards have a peak limit of $50,000, and a few have higher limits. However, it’s difficult to qualify for a credit card limit of more than $50,000 as a small business owner, especially if you’re just starting out.
Are you a new business needing over $50,000 in financing? Consider applying for startup business loans. If you have been in business for a few years, check out our best high-limit business credit cards to find other options.
- You can’t qualify or don’t want to apply for a bank loan: You may be denied a bank loan due to a low credit score, limited time in business, lack of collateral, excessive debt, and/or insufficient income. Moreover, a traditional bank or Small Business Administration (SBA) loan can be time-consuming and difficult to qualify for and doesn’t include the perks, rewards, and bonuses many business credit cards offer.
- You need fast or flexible financing for your business: Applying for a credit card usually results in fast approval and avoids the paperwork required for a bank loan. Once you’re approved, you have a revolving line of credit, which means you’ll have access to the original card limit as you pay down the balance on the card.
Advantages of Using Credit Cards to Fund a Business
There are many advantages to using credit cards to fund a business. Below are some of the benefits that you can enjoy if you choose a business credit card over other forms of financing.
1. No Collateral Is Needed
Most business credit cards are unsecured. If you have a good to excellent personal credit score, you will most likely qualify for an unsecured credit card that offers rewards and perks. For new business owners with excellent personal credit, using credit cards to start a business may be a good idea because you can easily qualify for one. Keep in mind, however, that while most credit cards are unsecured, most issuers will often require a personal guarantee as part of the qualification process. If you don’t want to provide a personal guarantee, check out our list of the leading business cards that don’t require a personal guarantee.
2. Introductory 0% APR Periods
An introductory 0% annual percentage rate (APR) period is usually anywhere from six to 12 months—but others offer up to 18 months of interest-free financing. Credit cards with 0% APR are useful for small business owners because it gives their business time to grow before they have to start paying for expenses. These are also ideal for those needing to make large purchases and new business owners using credit cards to start a business. Explore our roundup of the top business credit cards with 0% APR to see the best options.
On top of that, some cards also offer 0% financing periods for balance transfers. This means you can transfer your balance from an existing high-interest credit card and pay it down over time without interest. For options, see our top-recommended business credit cards for balance transfers.
3. Lower Cost of Capital Than Other Unsecured Debt
Business credit cards typically have interest rates that range from 9.99% to 34.99% annually. Looking at all financing options, this is less expensive than some alternative lenders and loans that don’t require collateral. While business credit cards often charge fees on things like cash advances and balance transfers, you can easily avoid these additional fees with careful budgeting and planning.
It’s worth noting that there are small business financing options that offer much lower interest rates than credit cards. However, these loans require collateral. In addition to requiring collateral, the less expensive forms of financing, such as SBA loans and commercial real estate (CRE) loans, have lengthy application processes, are more difficult to qualify for, and often restrict the use of funds.
Types of Business Financing & Typical APRs
Financing | Typical APR* |
|---|---|
Up to 15.75% | |
Up to 8% | |
Up to 34.99% | |
Up to 60% | |
*APRs are subject to change based on the current prime rate. | |
4. Signup Bonuses & Ongoing Rewards
Many small business credit cards offer signup bonuses, which are typically in the form of cash back, points, or miles. You will earn the bonus after you meet the specific spending requirements, and once the introductory period is over, the cards usually have ongoing cash back, points-based rewards, or travel rewards. Points rewards can also typically be used as a statement credit or redeemed for merchandise or travel.
Check out our leading cash back credit cards, top business credit cards for earning miles, and best travel credit cards for options.
5. Build Business Credit
Another important benefit of using credit cards to start a business is that these can help you build business credit, which is necessary to access other forms of financing with better terms. When you use your business credit card responsibly and pay your bills on time regularly, you will not only improve your personal credit score, but you’ll also establish your business credit.
If you don’t want your business transactions to affect your personal credit score, you may choose one of the top business credit cards that don’t report to personal credit bureaus.
6. Reusable Revolving Credit
A small business credit card acts like a revolving credit, which means you can use up to your approved credit limit, pay your credit card balance to free up your credit limit, and use it again. Unlike a traditional business loan, you don’t have to reapply every time you need to access more funds.
With traditional business credit cards, you are required to pay down at least a portion of your balance every month. It’s important to pay off your balance in a relatively short period to avoid high financing costs. For business charge cards, you need to pay your full balance every billing cycle.
7. Business Expenses Are Tracked Easily
Small business credit cards allow you to monitor any business-related expenses easily. You can use your monthly statements and set account alerts to help you stay on track. In addition, most business credit cards integrate with accounting software, such as FreshBooks, QuickBooks, and Xero, to save time with bookkeeping.
Don’t have business accounting software yet? Take a look at our top-recommended business accounting software to see which one is right for you.
8. Short-term Interest-free Financing
Business credit cards are a great option if you only need short-term financing. A business credit card essentially offers interest-free financing for almost a month because if you pay your balance in full every billing cycle, you won’t be charged with interest. Plus, if you get a credit card that doesn’t charge an annual fee, you will save on your overall credit cost. For options, see our list of the best business credit cards with no annual fee.
Meanwhile, business loans, even short-term ones, come with interest right away and, in most cases, you also need to pay certain fees.
Disadvantages of Using Credit Cards to Fund a Business
Using a credit card to fund your business also comes with risks and drawbacks. You need to keep track of your purchases to avoid overspending and ensure that payments are made on time, as late or missed payments can negatively impact your credit score.
1. Balances Can Accrue Quickly
Since credit cards are relatively easy to use (and you can use them almost anywhere), it is easy to spend beyond your intended budget—or worse, beyond your means. If you are not careful, your balance can accrue quickly, and you might end up not being able to afford to pay off your balance on time.
2. Penalty APRs Can Increase Cost of Capital
While it’s possible to use credit cards to lower your cost of capital, this won’t be the case if you fail to make a payment and end up being charged a penalty APR—the rate providers charge once you fall behind on payments, which typically are about 30% or higher. If this happens, you could talk to the card issuer and try to negotiate a new rate, but the best course of action might be to transfer the balance to a new credit card or seek out a less expensive form of financing.
3. Can Affect Your Credit Score Adversely & Future Borrowing Might Be Restricted
Most card issuers will perform a hard credit check when you apply for a card, and this will typically affect your credit score. Also, using up your credit card’s limit can impact your overall credit utilization ratio, which may also have a negative effect on your credit. Once your credit score is adversely affected, you will have a hard time getting approved for another funding in the short term if you decide to take out a small business loan.
Credit utilization ratio refers to the amount of revolving credit you use versus the total credit available to you. This is generally expressed as a percentage.
4. Possible Misuse & Abuse
Credit card misuse and abuse are possible, especially if you are not being careful. To avoid this, you should identify employees and business partners with access to your business credit card account and check your monthly bills to ensure all expenses are approved and accounted for. Also, be mindful of potential identity theft and see to it that all monthly transactions are consistent with the intended use of the credit card.
5. Credit Limits Are Relatively Low
If you’re using a credit card to start a business, you’ll be restricted to an approved credit card limit. Most often, small business credit cards have credit limits of up to $50,000, which might not be enough to fund your business. For larger borrowing needs, you can seek out other financing options. One solution is credit card stacking, the practice of applying for multiple credit cards to have a much larger line of credit. You can do this yourself or pay a company to do it for you.
6. You’re Typically Personally Liable
Most card issuers require a personal guarantee for a business credit card. If your business fails to repay any outstanding balances, you are personally liable to repay the debt. If your business is unsuccessful, it can result in putting your own personal credit history and credit score at risk. While this is no different than what’s required for most small business loans, this is something that you should be aware of. Note that while there are business cards that don’t require a personal guarantee, they typically come with restrictions and have more rigid requirements.
How To Use Credit Cards to Fund Your Business
Using a business credit card to fund your business is a good idea if you need immediate financing. It’s crucial to know how to use the card responsibly and make on-time payments to avoid unnecessary fees, maintain good personal credit, and build business credit. Building good business credit can eventually help you qualify for other business financing options in the future.
Step 1: Identify a Card That Is Right for You
There’s a wide variety of cards that offer cash back rewards, travel rewards, points rewards, or low interest. Determine the best business credit card for you based on your specific business situation, including the type of rewards you want. If your business is a startup, consider one of the top-recommended business cards for startups and choose one that’s designed specifically for your needs.
Step 2: Know the Fees Associated With the Card
Before applying for a card, it’s important to know the fees, including the ongoing APRs, annual fees, balance transfer fees, cash advance fees, and foreign transaction fees. Business credit cards usually carry an annual fee from $0 to $695 (or even more) and ongoing APRs from 9.99% to 34.99%. Ongoing APRs may change based on the prime rate. Other fees that you need to be aware of are penalty APRs, overdraft fees, returned payment fees, and late fees.
Step 3: Apply for a Credit Card
Generally, you can apply for a business credit card online in just a few minutes. Credit card issuers typically require you to provide your basic personal and business information. Once approved, you’ll usually receive your card in the mail within 7 to 10 business days. It’s best to research the application process and requirements of your chosen credit card first before applying to ensure that you’re ready with your required documents.
Step 4: Use Your Card for Business-related Expenses
As soon as you receive your card, you can start using it for business-related expenses. Do not use it for personal expenses, as that would be a violation of your cardholder agreement. Commingling your personal expenses with your business purchases will also make it more difficult to track your business transactions, and this can cause problems with the IRS when tax season comes.
Step 5: Pay Off Your Credit Card Bill Promptly
As you make purchases on your credit card, you will need to pay your credit balance down or pay it off completely to avoid being charged with APR. It’s important to pay off your balance in a timely manner to avoid late fees and maintain good credit.
Applying for small business credit cards is easier compared to a traditional loan. The best small business credit cards offer introductory bonuses, various ongoing rewards, and low introductory and ongoing APRs.
5 Business Credit Cards To Consider for Funding a Business
There are several business credit cards available, and all of them are ideal for funding a small business. To choose the right business credit card for you, you need to take into account your company’s funding needs, financial resources, qualifications, and other preferences.
1. U.S. Bank Business Triple Cash Rewards World Elite Mastercard®
U.S. Bank Business Triple Cash Rewards World Elite Mastercard®
Fit Small Business's ratings are calculated by industry experts of our editorial team. Our grading rubric considers the type of credit card (such as cash back or travel), and the card's rates, fees, rewards, and additional features like insurance.
BEST FOR:
0% APR for 15 billing cycles
Intro APR
Regular APR
18.99% - 27.99% (Variable)
Annual Fee
$0
Credit Needed
Excellent/Good
- Earn $500 in cash back. Just spend $4500 on the Account Owner's card in the first 150 days of opening your account.
- Earn 3% cash back on eligible purchases at gas stations and EV charging stations, office supply stores, cell phone service providers and restaurants.
- 1% cash back on all other eligible net purchases.
- Earn 5% cash back on prepaid hotels and car rentals booked directly in the Rewards Center.
- No limit on total cash back earned.
- Rewards never expire.
- Earn an annual $100 statement credit for recurring software subscription expenses such as FreshBooks or quickbooks
- 0% Intro APR on purchases and balance transfers for 15 billing cycles. After that, a variable APR currently 18.99% - 27.99%.
- No annual fee.
- Great Offer from U.S. Bank, a 2022 World's Most Ethical Company® - Ethisphere Institute, February 2022
- Terms and conditions apply
- Pay over time by splitting eligible purchases of $100+ into equal monthly payments with U.S. Bank ExtendPay™ Plan.
Pros
- 0% APR applies to both purchases and balance transfers
- Unlimited cash back rewards
- No annual fee
Cons
- Balance transfer fee is charged even during the introductory period
- Intro APR doesn’t apply to cash advances
- MasterRental car rental collision damage waiver: When you rent a car using your U.S. Bank credit card, you’re covered in case of accident or theft on all rentals made worldwide. Coverage is primary, which means you won’t need to use your personal auto insurance or accept the insurance offered by the rental agency. Coverage is capped at $50,000.
- Purchase assurance: U.S. Bank may repair or reimburse for items purchased with your U.S. Bank business credit card that are damaged or stolen within 90 days of purchase. Coverage is limited to $1,000 per loss, up to $25,000 per year, per account. Lost items and items left out of reach that others can see are not covered.
- Extended warranty protection: U.S. Bank will double the manufacturer’s warranty up to an additional one year from the expiration of warranties of five years or less. An item with a six-month warranty would be backed for an additional six months, for example. The issuer will replace the item or reimburse you up to the amount charged on your U.S. Bank card up to $10,000.
Intro APR
Regular APR
18.99% - 27.99% (Variable)
Annual Fee
$0
Credit Needed
Excellent/Good
- Earn $500 in cash back. Just spend $4500 on the Account Owner's card in the first 150 days of opening your account.
- Earn 3% cash back on eligible purchases at gas stations and EV charging stations, office supply stores, cell phone service providers and restaurants.
- 1% cash back on all other eligible net purchases.
- Earn 5% cash back on prepaid hotels and car rentals booked directly in the Rewards Center.
- No limit on total cash back earned.
- Rewards never expire.
- Earn an annual $100 statement credit for recurring software subscription expenses such as FreshBooks or quickbooks
- 0% Intro APR on purchases and balance transfers for 15 billing cycles. After that, a variable APR currently 18.99% - 27.99%.
- No annual fee.
- Great Offer from U.S. Bank, a 2022 World's Most Ethical Company® - Ethisphere Institute, February 2022
- Terms and conditions apply
- Pay over time by splitting eligible purchases of $100+ into equal monthly payments with U.S. Bank ExtendPay™ Plan.
Pros
- 0% APR applies to both purchases and balance transfers
- Unlimited cash back rewards
- No annual fee
Cons
- Balance transfer fee is charged even during the introductory period
- Intro APR doesn’t apply to cash advances
- MasterRental car rental collision damage waiver: When you rent a car using your U.S. Bank credit card, you’re covered in case of accident or theft on all rentals made worldwide. Coverage is primary, which means you won’t need to use your personal auto insurance or accept the insurance offered by the rental agency. Coverage is capped at $50,000.
- Purchase assurance: U.S. Bank may repair or reimburse for items purchased with your U.S. Bank business credit card that are damaged or stolen within 90 days of purchase. Coverage is limited to $1,000 per loss, up to $25,000 per year, per account. Lost items and items left out of reach that others can see are not covered.
- Extended warranty protection: U.S. Bank will double the manufacturer’s warranty up to an additional one year from the expiration of warranties of five years or less. An item with a six-month warranty would be backed for an additional six months, for example. The issuer will replace the item or reimburse you up to the amount charged on your U.S. Bank card up to $10,000.
- The U.S. Bank Business Triple Cash Rewards World Elite Mastercard® is a great option if you need to make a large purchase or transfer a balance, as it offers 0% APR for the first 15 billing cycles
- It has no annual fee, and you can earn up to 5% cash back on your purchases
- It also offers a $500 bonus cash back when you spend $4,500 within 150 days after opening an account
- If you pay for software subscription like QuickBooks or FreshBooks, you can earn a $100 statement credit annually
- It is also our top recommended fuel credit card for small businesses, making it an excellent choice if you often spend for gas
2. American Express Blue Business® Plus
The Blue Business® Plus Credit Card from American Express
Fit Small Business's ratings are calculated by industry experts of our editorial team. Our grading rubric considers the type of credit card (such as cash back or travel), and the card's rates, fees, rewards, and additional features like insurance.
BEST FOR:
Pocketing 2x points per $1 and 0% introductory APR for 12 months
Intro APR
0% on purchases
Regular APR
18.24% - 26.24% Variable
Annual Fee
No annual fee
Credit Needed
Good, Excellent
- Earn 15,000 Membership Rewards® points after you spend $3,000 in eligible purchases on the Card within your first 3 months of Card Membership.
- Earn 2X Membership Rewards® points on everyday business purchases such as office supplies or client dinners. 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter.
- You’ve got the power to use your Card beyond its credit limit* with Expanded Buying Power.
- *The amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to us, and other factors.
- 0.0% intro APR on purchases for 12 months from the date of account opening, then a variable rate, 18.24% - 26.24%, based on your creditworthiness and other factors at account opening.
- No Annual Fee
- Terms Apply
Pros
- No annual fee
- 0% APR for 12 months on purchases and balance transfer
- Welcome offer bonus points
- Expanded buying power
- Fixed-rate rewards
Cons
- Cash advances aren’t allowed
- Charges foreign transaction fees
- 2x points rewards are capped at $50,000 in spending
- Expanded buying power: The card lets you spend beyond your credit limit through this feature. The amount you can spend above your credit limit adjusts with your card usage, payment history, credit record, financial resources, and other factors.
- Purchase protection: Items purchased using this card are covered in case they’re damaged or stolen within 90 days of the date of purchase. American Express will reimburse you for the amount charged to your eligible card, up to $1,000 per claim and $50,000 per cardmember, per year.
- Extended warranty protection: American Express provides cardholders with an extended warranty for one additional year, which applies to items with original manufacturer warranties of five years or less.
Intro APR
0% on purchases
Regular APR
18.24% - 26.24% Variable
Annual Fee
No annual fee
Credit Needed
Good, Excellent
- Earn 15,000 Membership Rewards® points after you spend $3,000 in eligible purchases on the Card within your first 3 months of Card Membership.
- Earn 2X Membership Rewards® points on everyday business purchases such as office supplies or client dinners. 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter.
- You’ve got the power to use your Card beyond its credit limit* with Expanded Buying Power.
- *The amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to us, and other factors.
- 0.0% intro APR on purchases for 12 months from the date of account opening, then a variable rate, 18.24% - 26.24%, based on your creditworthiness and other factors at account opening.
- No Annual Fee
- Terms Apply
Pros
- No annual fee
- 0% APR for 12 months on purchases and balance transfer
- Welcome offer bonus points
- Expanded buying power
- Fixed-rate rewards
Cons
- Cash advances aren’t allowed
- Charges foreign transaction fees
- 2x points rewards are capped at $50,000 in spending
- Expanded buying power: The card lets you spend beyond your credit limit through this feature. The amount you can spend above your credit limit adjusts with your card usage, payment history, credit record, financial resources, and other factors.
- Purchase protection: Items purchased using this card are covered in case they’re damaged or stolen within 90 days of the date of purchase. American Express will reimburse you for the amount charged to your eligible card, up to $1,000 per claim and $50,000 per cardmember, per year.
- Extended warranty protection: American Express provides cardholders with an extended warranty for one additional year, which applies to items with original manufacturer warranties of five years or less.
- Offers points rewards on all purchases, regardless of spending categories
- Has no annual fee
- Offers 2x points per dollar on the first $50,000 purchases each year, then 1x point thereafter
- Features Expanded Buying Power, which allows you to spend over your credit limit based on your credit score, spending habits, payment history, and financial resources
- Offers interest-free financing on purchases for the first 12 months of card ownership
- Offers 15,000 bonus points after spending $3,000 in eligible purchases within the first three months of card membership
- Is one of our leading business credit cards for sole proprietors
3. Chase Ink Business Unlimited®
Ink Business Unlimited® Credit Card
Fit Small Business's ratings are calculated by industry experts of our editorial team. Our grading rubric considers the type of credit card (such as cash back or travel), and the card's rates, fees, rewards, and additional features like insurance.
BEST FOR:
Pocketing 1.5% cash back on every single purchase
Intro APR
0% Intro APR on Purchases
Regular APR
17.99% - 23.99% Variable
Annual Fee
$0
Credit Needed
Good - Excellent
- Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase made for your business
- No Annual Fee
- Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
- Earn rewards faster with employee cards at no additional cost. Set individual spending limits for greater control.
- Round-the-clock monitoring for unusual credit card purchases
- With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
- 0% introductory APR for 12 months on purchases
- Member FDIC
Pros
- With interest-free financing option on purchases
- Fixed unlimited cash back on all purchases
Cons
- Does not have interest-free financing option on balance transfers
- Charges high foreign transaction fees
- Auto rental collision damage waiver: You can decline the company’s collision insurance and charge the entire rental cost to this card.
- Travel and emergency assistance services: Call the Benefit Administrator for legal and medical referrals or other travel and emergency assistance.
- Purchase protection: You can ensure that your new purchases are covered for 120 days against damage or theft up to $10,000 per claim and $50,000 per account.
- Zero liability protection: Chase will not hold you responsible for unauthorized transactions made with both your card and your account information.
- Cellphone protection: Receive up to $1,000 per claim in cellphone protection against covered theft or damage for you and your employees included in your monthly cellphone bills when using your card to pay for it. This applies for a maximum of three claims within a 12-month period and will charge a $100 deductible per claim.
Intro APR
0% Intro APR on Purchases
Regular APR
17.99% - 23.99% Variable
Annual Fee
$0
Credit Needed
Good - Excellent
- Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase made for your business
- No Annual Fee
- Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
- Earn rewards faster with employee cards at no additional cost. Set individual spending limits for greater control.
- Round-the-clock monitoring for unusual credit card purchases
- With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
- 0% introductory APR for 12 months on purchases
- Member FDIC
Pros
- With interest-free financing option on purchases
- Fixed unlimited cash back on all purchases
Cons
- Does not have interest-free financing option on balance transfers
- Charges high foreign transaction fees
- Auto rental collision damage waiver: You can decline the company’s collision insurance and charge the entire rental cost to this card.
- Travel and emergency assistance services: Call the Benefit Administrator for legal and medical referrals or other travel and emergency assistance.
- Purchase protection: You can ensure that your new purchases are covered for 120 days against damage or theft up to $10,000 per claim and $50,000 per account.
- Zero liability protection: Chase will not hold you responsible for unauthorized transactions made with both your card and your account information.
- Cellphone protection: Receive up to $1,000 per claim in cellphone protection against covered theft or damage for you and your employees included in your monthly cellphone bills when using your card to pay for it. This applies for a maximum of three claims within a 12-month period and will charge a $100 deductible per claim.
- Is best for those wanting a card with a simple rewards program
- Has no annual fee
- Offers unlimited 1.5% fixed rate cash back on all purchases, regardless of expense categories
- Offers a $750 cash back bonus after spending $6,000 within three months after opening an account
- Offers 0% APR on purchases for the first 12 billing cycles
- Is our best overall business card for new businesses with no credit history, making it a good option if you are a startup business
4. Capital One® Spark® Classic for Business
Capital One® Spark® Classic for Business
Fit Small Business's ratings are calculated by industry experts of our editorial team. Our grading rubric considers the type of credit card (such as cash back or travel), and the card's rates, fees, rewards, and additional features like insurance.
BEST FOR:
Those with fair credit
Intro APR
N/A
Regular APR
29.99% (Variable)
Annual Fee
$0
Credit Needed
Fair
- 1% cash back every time you swipe
- Build your business credit through responsible usage
- Issue employee cards for free
Pros
- Opportunity to build business credit
- Only requires fair credit to qualify
- Doesn’t charge annual and balance transfer fees
Cons
- Charges high ongoing APR
- Has no 0% introductory APR
- No sign-up bonus
- Automatic payments: Setting up AutoPay in the Capital One mobile app will save you from having to worry about signing in to your account every month
- $0 fraud liability: if your card is either lost or stolen, you can get an emergency replacement and cash advance.
- Purchase records: You can download all purchase records quickly and securely in multiple formats, including Quicken®, QuickBooks®, and Excel®.
- Extended warranty: Get free additional warranty and protection on eligible items purchased with your business credit card.
Free employee cards: You can create multiple employee cards, track employee spending, and customize spending limits while earning all the rewards from their purchases.
Intro APR
N/A
Regular APR
29.99% (Variable)
Annual Fee
$0
Credit Needed
Fair
- 1% cash back every time you swipe
- Build your business credit through responsible usage
- Issue employee cards for free
Pros
- Opportunity to build business credit
- Only requires fair credit to qualify
- Doesn’t charge annual and balance transfer fees
Cons
- Charges high ongoing APR
- Has no 0% introductory APR
- No sign-up bonus
- Automatic payments: Setting up AutoPay in the Capital One mobile app will save you from having to worry about signing in to your account every month
- $0 fraud liability: if your card is either lost or stolen, you can get an emergency replacement and cash advance.
- Purchase records: You can download all purchase records quickly and securely in multiple formats, including Quicken®, QuickBooks®, and Excel®.
- Extended warranty: Get free additional warranty and protection on eligible items purchased with your business credit card.
Free employee cards: You can create multiple employee cards, track employee spending, and customize spending limits while earning all the rewards from their purchases.
- Is a suitable choice if you have a fair credit score of between 580 and 669
- Has no annual fee
- Offers unlimited 1% fixed-rate cash back on all business-related purchases
- Can help improve your credit score with consistent on-time payments and responsible use
- Is our top-recommended business credit card for fair credit and one of our best instant-approval business cards
5. PNC Cash Rewards® Visa Signature® Business Credit Card
PNC Cash Rewards® Visa Signature® Business Credit Card
Fit Small Business's ratings are calculated by industry experts of our editorial team. Our grading rubric considers the type of credit card (such as cash back or travel), and the card's rates, fees, rewards, and additional features like insurance.
BEST FOR:
PNC Bank account holders wanting to earn fixed-rate rewards
Intro APR
0% for 9 billing cycles
Regular APR
15.99% to 24.99% variable
Annual Fee
$0
Credit Needed
Good - Excellent
- Earn $250 cash bonus for spending $3,000 in the first three billing cycles
- 0% APR on purchases for the first nine billing cycles after opening an account
- Earn 1.5% cash back on all purchases
- No annual fee
Pros
- Doesn’t charge annual fees
- With sign-up bonus
- Has low ongoing APR on purchases and balance transfers
Cons
- Doesn’t offer 0% introductory APR on balance transfers
- Need to have an active PNC Bank account to qualify for the card
- Cash Flow Insight®: Designed to help you monitor and plan your cash flow, send invoices via email, get paid online, and manage payables digitally.
- Lost luggage reimbursement: You and your immediate family members can be reimbursed up to $3,000 per covered trip if your luggage was lost or stolen when you charge your entire travel fare to this card.
- Travel and emergency assistance services: You can call the toll-free, 24-hour benefit administrator line at (800) 992-6029 to get assistance and referrals while traveling away from home.
- Trip delay reimbursement: Covers up to a maximum of $300 per purchased ticket for reasonable additional expenses incurred when a Covered Trip purchased was delayed for more than 12 hours.
Intro APR
0% for 9 billing cycles
Regular APR
15.99% to 24.99% variable
Annual Fee
$0
Credit Needed
Good - Excellent
- Earn $250 cash bonus for spending $3,000 in the first three billing cycles
- 0% APR on purchases for the first nine billing cycles after opening an account
- Earn 1.5% cash back on all purchases
- No annual fee
Pros
- Doesn’t charge annual fees
- With sign-up bonus
- Has low ongoing APR on purchases and balance transfers
Cons
- Doesn’t offer 0% introductory APR on balance transfers
- Need to have an active PNC Bank account to qualify for the card
- Cash Flow Insight®: Designed to help you monitor and plan your cash flow, send invoices via email, get paid online, and manage payables digitally.
- Lost luggage reimbursement: You and your immediate family members can be reimbursed up to $3,000 per covered trip if your luggage was lost or stolen when you charge your entire travel fare to this card.
- Travel and emergency assistance services: You can call the toll-free, 24-hour benefit administrator line at (800) 992-6029 to get assistance and referrals while traveling away from home.
- Trip delay reimbursement: Covers up to a maximum of $300 per purchased ticket for reasonable additional expenses incurred when a Covered Trip purchased was delayed for more than 12 hours.
- Is a good fit for those who plan to carry a balance to the next billing cycle because its ongoing APR is lower than most other business credit cards
- Has no annual fee
- Offers unlimited 1.5% cash back on all eligible business purchases
- Offers $400 if you spend $3,000 in qualifying purchases within the first three months of card ownership
- Offers 0% APR on purchases for the first nine months after opening an account
- Is one of our best small business credit cards
Frequently Asked Questions (FAQs)
A credit card might not be the best option if you need a larger loan, your business is already established, or you can’t qualify for a business credit card. In this case, you may want to consider other alternative funding methods to fund your small business.
You may consider the following financing alternatives to fund your business:
- Bootstrapping: Bootstrapping is using your own personal funds to get a business started. It may be a good choice if you’re not in a rush to grow your business. It will require in-depth financial planning on your part to separate your personal expenditures from your business expenses.
- Home equity loan/line of credit: If you’re a homeowner, you can borrow funds against the equity in your home. Home equity loans tend to be fixed rate while home equity lines of credit (HELOC) typically have variable rates. This may be a good source of funds in the short term, but it can add significantly to your personal debt, so it’s not a great option for long-term use. Read our guide on how to use a home equity loan to finance your small business to learn more.
- Small business loan: A small business loan from the SBA offers low interest rates and a limit of up to $5 million. To qualify for an SBA loan, you need to have an already established small business, have good personal credit, be able to demonstrate the need for financing, and have the ability to pay back the loan. Read our article about SBA loans to learn more.
- Small business line of credit: You can apply for a business line of credit through your bank, credit union, or an online alternative lender. Typically, your small business needs to be in operation for at least two years, and you need to have good personal credit to qualify. Moreover, you must prepare the necessary paperwork to show your revenue history.
- Crowdfunding: Crowdfunding is the practice of raising funds from investors to finance your small business in exchange for goods, services, or even equity in your company. This financing method has grown in popularity as an alternative to applying for a business loan. Read our guide on how to crowdfund your business and see our list of the best crowdfunding sites for more information.
It’s possible to use a personal credit card for business, especially if your business is new and couldn’t qualify for a small business credit card. Some personal credit cards also offer rewards and perks that may be useful for your business. However, it’s important to separate your personal and business expenses to keep your accounting organized and avoid getting in trouble with the IRS.
Bottom Line
Most business owners can benefit from using a small business credit card to fund a business—it may be the easiest and fastest way to finance your small business while earning rewards. Make sure to use your card responsibly and pay your bills on time, as late payments can cause unnecessary charges and hurt your credit score. Also, keep your balance low relative to your total credit line so that your credit utilization ratio remains favorable. This can increase your chances of getting additional credit and qualifying for other financing options in the future.
