The Benefits of a Business Bank Account & the Top 3 Banks for Business Credit Cards
When running a business, small or large, it's critical to keep your finances in order. From setting money aside for taxes to budgeting for branding and marketing materials, having your finances organized will help your business stay a float.
Keeping your personal finances separated from your business finances will help prevent the mishandling of money, make accounting easier on your financial team (or you!), and will prevent your personal credit from being effected. While it may seem very difficult to open a business bank account, Novo is an online bank account made with the small business owner in mind! It takes less than 5 minutes to sign up and you'll be instantly approved.
If you own a business that operates with a team of people, having the ability to direct deposit is always a plus. By using this banking feature, you'll be able to properly distribute payments to team members and if you bank with Novo, it comes at no additional fee. Additionally, you'll be able to keep a record of any payments distributed to team members, freelancers, vendors, and more.
Another great feature of having a business bank account is being able to cash checks made out to your business. If you don't have a business bank account, you won't be able to cash any check that has your businesses name on it. All checks will have to made out to your name and will deposit with your personal funds. With a business bank account you can cash checks directly to your account and prevent mixing your personal and business funds together. By banking with Novo, you'll also have the ability to cash checks via mobile deposit, so that you can deposit checks on the go or even from home.
Some bank accounts even comes with cash back on purchases, this gives you bonus cash to reinvest in your business!
By opening a business credit card, you'll be able to develop a business credit score. This is important if you see your business applying for a loan, investing in properties/vehicles, and other large expenses. A great business credit score will also grant you large spending limits, so if you're business is ever in a financial emergency, like combating issues presented by COVID-19, you'll have a credit limit available to help out.
There's a lot of banks that exist that offer business credit cards, and it can be hard to decipher which one is the best for your business. Below, you can find our Top 5 Banks for Business Credit Cards with all of the perks they offer.
Source: Black Hawk Bank
Chase - Ink Business Unlimited Credit Card
Chase's Ink Business Unlimited Credit Card is the best for unlimited cash back. This means with every purchase made on your Chase credit card, you will earn 1.5% cash back that you can reinvest into your business. Depending on your credit history the APR can be as low as 13.99%, which is lower than most. However, for the first 12 months, the APR is set at 0%. When opening the Chase card, there is no annual fee, in fact, there's an Introduction Offer. The Introduction offer with your Chase credit card offers you a $750 cash back bonus after you spend $7,500 within the first 3 months. There are many more benefits to the Chase Ink Business Unlimited Credit Card and you can check them out yourself here.
2. Capital One - Spark Cash Plus
Capital One's Spark Cash Plus is the best for having lots of rewards. To start, you can get up to $1,000 cash bonus in your introduction offer. You'll get $500 when you spend $5,000 in the first 3 months and $500 when you spend $50,000 in the first 6 months. You can also get an annual $200 cash bonus every year that you spend over $200,000. With cash back, cardholders receive 2% cash back on every purchase and 5% cash back on all purchases towards rental cars and hotels booked via Capital One Travel. While there is a $150 annual fee, that's not the only downside. Spark Cash Plus does not have an APR. This means that at the end of the month, your total balance must be paid. To learn more about Spark Cash Plus by clicking here.
3. American Express - The Blue Business Plus Credit Card
American Express' Blue Business Plus Credit Card is best for everyday business purchases. While their introduction offer isn't a cash bonus, they do offer 15,000 Membership Reward Points. You'll get 2X Membership Reward Points on everyday purchases like client dinner, employee travel, office supplies etc. There's no APR for the first 12 months and no annual fee. Check out the rest of the benefits here.
Source: Bank Rate
While these are the credit cards that we believe have the best benefits, you should always choose your credit card based on your needs. What works for one business doesn't always work for the next. So be sure to throughly research the different options out there so that you can be sure to make an educated decision.
Have a credit card suggestion that's not listed above? Feel free to comment below!