Cash is King
Cashback business cards can help you establish business credit, manage cash flow, finance purchases, and earn cash back to help grow your business. But if your monthly small business expenses are less than $1,500 a month, you probably don’t want to pay $450 for a premium card with high spending thresholds. Instead, you should be looking for a card that with:
- a low or no annual fee ($100 or less),
- sign-up bonus with low or no spending requirements, and
- cash back rewards in the categories you spend the most.
Although no one card is right for every business, to help you choose, we’ve selected 4 of our favorites for you to check out.
In this post...
1. Ink Business Cash® Card
Topping our list for no annual fee business credit cards is the Chase Ink Business Cash Card. Even though you won’t pay an annual fee with this card, you’ll still earn rewards points on popular business expense categories such as office supplies, telecom services, gas purchases, and dining. Plus, This card comes with a $500 bonus after you spend $3,000 within the first three months of card membership.
Annual Fee: $0
Sign-Up Bonus: $500 cash back when you spend $3,000 within the first 3 months.
Rewards: 5% cash back on office supplies, internet, cable and phone services (up to $25,000), 2% cash back on gas and restaurants (up to $25,000), and 1% on everything else (unlimited),
Extras: Free employee cards
Bottom Line: The main draw of this Chase business card is the no annual fee and high cash back earnings rate on office supplies and telecom expenses, making this a great pick for small business that spend more in these categories. Compare this card with other cash back business cards.
2. Capital One® Spark® Cash for Business
For cash back rewards, we recommend the Capital One Spark Cash for Business. This card offers an unusual unlimited 2% cash back on all purchases. Although it carries a $95 annual fee, the fee is waived the first year and will pay for itself if you spend at least $4,750 a year. If you spend less than that, consider a no-annual-fee card like the Capital One® Spark® Cash for Business (which earns 1.5% cash back on purchases).
Annual Fee: $95 (waived the first year)
Sign-Up Bonus: $500 after you make $4,500 in purchases within the first 3 months.
Rewards: 2% cash back on everything (unlimited!!)
Extras: Free employee cards
Bottom Line: This flexible card offers a generous $500 cash bonus and earns your business cash back on all spending, making it simple to use and very rewarding. As your business grows, you may want to consider other business cash rewards cards with even higher rewards and sign-up bonuses.
3. SimplyCash® Plus Business Credit Card from American Express
The SimplyCash® Plus Business Credit Card from American Express is the most flexible card on our list, allowing you to decide which purchase categories will earn 3% cash back (up to $50,000 annually). Categories that you can choose from include airfare, hotels, car rental, gas station purchases, dining, computer hardware, shipping, and advertising. These last two categories (shipping and advertising) are unusual for small business cash back cards. If your business spends a lot in these categories, this card will give you great returns. The card also comes with a standard 5% cash back on office supplies and wireless telephone services (up to $50,000 annually).
Annual fee: $0
Welcome offer: 0% introductory APR for the first 15 months of card membership.
Rewards: 5% cash back on office supplies and wireless telephone services, 3% cash back on a category of your choice, and 1% on everything else.
Extras: option to buy above your credit limit
Bottom Line: This card offers more flexibility over your rewards purchases, allowing you to choose between 8 different categories for your 3% reward category. It also gives you the flexibility to exceed your credit limit as long as you pay the portion that is above your credit limit back each billing cycle as part of your minimum payment due.
4. Bank of America Business Advantage Cash Rewards Mastercard®
The no annual fee Bank of America Business Advantage Cash Rewards Mastercard® will earn you 3% on gas and office supplies, which can really add up if your firm does a lot of business on the road. This card can also help jump start your business by financing new purchases with an introductory 0% APR for the first 9 months.
Annual Fee: $0
Sign-Up Bonus: $200 cash back after you make $500 in purchases within 60 days
Rewards: 3% cash back on gas and office supplies (up to $250,000 annually), 2% cash back on dining, and 1% on everything else
Extras: 0% APR for first 9 months
Bottom Line: Although the sign-up bonus isn’t very impressive, the no annual fee and high rewards rate on gas make this a good pick for small business that rack up a lot of driving miles and might want to finance a large purchase with 0% interest within the first 9 months.
Still deciding whether you need a designated business card? Read Using Credit Cards to Fund Your Small Business.