Methodology
When considering the best cash-back credit cards for businesses, we compared non only the various earning structures merely the overall combination of benefits each card offered. We went through dozens of options and considered the post-obit factors when it came time to scarlet-pick our summit choices: rewards rate, credit bill of fare fees, ease of use, welcome offers and cardholder perks.
The Best Cash Dorsum Business organization Credit Cards
What Is a Cash-Back Business Credit Card?
A cash-back business organisation credit card is any credit card designed for and issued to businesses that earns rewards in the form of cash dorsum. Ofttimes, cash-dorsum business credit cards earn at college rates in common business organization expense categories, such as office supplies and net or telephone service, with a smaller cash-back rate on general purchase categories. These cards oftentimes come with business organisation-oriented benefits besides.
Business credit cards may withal crave personal guarantees from master cardholders in the event a business lacks sufficient business credit history or collateral. The cards may help smaller businesses including sole proprietorships keep owners’ personal and business expenses separate.
How Does Greenbacks Back For Credit Cards Work?
Every time you make a buy with your cash-back concern card, you’ll earn a percentage back on your spending. The amount you’ll earn will depend on your detail carte’southward terms. For instance, 1% cash back on a $100 purchase equates to $1 in cash-back rewards.
Those earnings are accumulated in your carte’s account and you can redeem them according to your card’s protocols. Some cards let you redeem your greenbacks earnings in any amount, at any fourth dimension, while others require a minimum balance to cash out. Normally, the rewards are redeemed equally a argument credit or an electronic eolith into a linked account. Cash-back rewards are not a disbelieve on purchases—all purchases must be paid off in full.
Pros and Cons of Greenbacks-Back Business Credit Cards
Business credit cards offer cash-dorsum rewards can be, well, rewarding. But these cards as well often come with a few disadvantages.
Pros:
- Cardholders earn cash rewards for spending
- A wide market place of cards offer a variety of category-based earning—applicants volition likely find a card that fits into their businesses’ spending patterns
Cons:
- Greenbacks-back cards often feature college standard APRs
- Some cards characteristic caps on how much cash back can be earned each year
- Cash back is not a discount—cardholders must await for greenbacks-dorsum redemptions
How to Employ for a Cash-Back Business Credit Card
The business credit card awarding process resembles a personal credit card awarding process. It oft requires data including the business’ name, taxation ID, incorporation status, annual revenue and more than. About issuers make applying like shooting fish in a barrel and convenient via online application forms, only calling your issuer of choice may be just equally convenient. To learn more about the application process, run across our guide to applying for credit cards.
How to Choose a Business organization Credit Card for Cash Back
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Determine whether you lot prefer bonus categories or flat-charge per unit rewards.
If y’all spend a lot of money in specific categories like role supply stores or dining each year, yous may be better off with a credit menu that offers more points in these areas. On the other hand, a credit bill of fare that offers a loftier rate of apartment-rate rewards may help you lot earn more if your spending is spread evenly across multiple categories. -
Compare welcome bonus offers.
To see if you lot can qualify for the best bonus offers, effigy out how much your business spends on average each month. From at that place, meet which bonus offers fit with your average spending style. -
Look for cardholder perks y’all want.
If you’re interested in credit menu benefits like purchase protection or extended warranties, wait for business credit cards with these perks. -
Make up one’s mind how you desire to redeem your rewards.
Business cards offering cash dorsum all work differently. Some only let you redeem for statement credits or a cheque in the mail service, while others let you cash in points for souvenir cards, travel, trade and more than. Brand sure any cards you’re because offer the redemption options you lot adopt. -
Take a shut look at annual fees.
Finally, make sure to compare business credit cards in terms of almanac fees and other fees. While paying an annual fee can be well worth it, y’all should make sure you’re getting ample rewards and cardholder benefits in return.
Bottom Line
A cash-back business card tin evangelize solid dividends on spending for many businesses, but all business owners should carefully consider whether a cash-back card is meliorate than other types of business organisation credit cards. Be sure to weigh additional benefits, credit limits and introductory and standard APRs against the advantage potential of cards you consider for your business.
To view rates and fees for the American Limited Blue Business Cash™ Card please visit this page.
Frequently Asked Questions (FAQs)
What is the best business credit card for greenbacks dorsum?
Forbes Advisor rates the Ink Business Unlimited® Credit Card as the best business organization credit card for cash dorsum. It has a elementary notwithstanding rewarding earning structure as well as a suite of cardmember benefits that cater to small-scale businesses.
Which credit menu offers the highest credit limit?
Although business organisation credit cards typically offer higher credit limits than personal cards, if yous’re looking for the highest possible limit on a cash-back business credit carte, know that the limit you’ll actually receive will depend on your credit contour.
If you expect that you’ll occasionally need to spend more on a card than your credit limit, consider a business accuse card. With a charge carte du jour you’ll take to pay the balance in full every month, unlike a credit card where you can carry a balance. A charge card also doesn’t accept a preset spending limit which means you won’t have to worry near being denied for a large buy. Notwithstanding, the issuer will use your spending patterns to determine an upper limit on the amount y’all can accuse at whatsoever one fourth dimension.
Which cash-dorsum credit menu earns the most cash dorsum?
In that location’s no i best cash-back business card that will earn the most rewards for everyone. The credit carte that will earn you lot the highest cash-back rewards will depend on your business organization’ spending habits and tolerance for tracking rewards.
For example, the Ink Business Preferred® Credit Carte earns iii points per dollar on the beginning $150,000 spent on travel and select business categories each account anniversary twelvemonth and one point per dollar on all other purchases. If these categories match up with your visitor’s expenses, the rewards can really add together up. But information technology requires tracking your spending advisedly.
If y’all prefer a simple greenbacks-back scheme, a flat-charge per unit card could be a improve fit. The American Express Blue Business Cash™ Carte earns 2% cash back on all eligible purchases on up to $50,000 per calendar year, and so one%.
Is cash back taxable for a business?
Credit carte du jour cash-back rewards are considered a rebate on purchases rather than as income. Because of this, cash back is not taxable for businesses. However, other types of credit card rewards may exist treated as earned income and your business may be issued a 1099 to written report on your annual taxes. Always check with your tax advisor to ensure yous’re filing and paying business taxes every bit required.
Other Credit Cards to be Considered
Information provided on Forbes Advisor is for educational purposes just. Your financial situation is unique and the products and services we review may not be right for your circumstances. We practise non offering financial advice, advisory or brokerage services, nor practise nosotros recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the fourth dimension of publication. By operation is not indicative of time to come results.
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Source: https://www.forbes.com/advisor/credit-cards/best/business-cash-back/