How U.S. Startups Get Credit Cards for Business

Getting a credit card for your startup can be a challenge, but it's not impossible. Many U.S. startups have successfully obtained credit cards for business use.

You can apply for a business credit card with a personal credit check, but some issuers may require a business credit check. This can be done through a service like Dun & Bradstreet or Experian.

Some issuers offer rewards and benefits specifically designed for business owners, such as cash back on office supplies or travel expenses.

A different take: Prepaid Credit Card No Credit Check

Choosing a credit card for your startup can be a daunting task, especially with the numerous options available. If you're a venture-backed company, look for cards specifically designed for businesses with funding.

To avoid personal liability, it's essential to choose a credit card that doesn't require a personal guarantee. This is crucial for funded startups, as the founder already has enough to worry about. Avoid credit cards that require personal liability by opting for providers that don't.

A good credit card should have a high spending limit, one that's tied to your company's funding, not your personal credit score. This ensures you can cover big-ticket expenses without worrying about hitting a low limit. Brex is a great option for this feature.

The best startup credit cards also make accounting easy, with cleanly presented statements and modern online UX. Look for providers that update their statements frequently, so you can track your balance daily. This becomes even more important as your company grows and you want to do your books on a weekly basis.

To control spending, choose a credit card that allows you to limit how much individuals or teams can purchase. This feature is essential for funded companies with growing headcounts. Brex offers an online interface where you can easily adjust spending limits and control your team's spending.

Here are the key features to look for in a startup credit card:

Remember, the best startup credit card is one that understands your company's needs and provides features that support your growth.

Business credit cards are a must-have for U.S. startups, and for good reason. They offer a range of features that help you manage your company's finances with ease.

You can set spending limits for each cardholder, giving you more control over company spending and helping you save money. This is especially important for businesses with multiple employees making purchases on behalf of the company.

With business credit cards, you can issue cards to team members individually or in bulk, making it easy to onboard new employees. You can even integrate with Google Workspaces to simplify the process.

Custom limits and expiration dates can be set for team members' cards, and you can lock cards to specific merchants to prevent unauthorized purchases. This level of control is invaluable for businesses with a large number of employees.

Requiring receipts and notes for transactions can help you keep track of your company's spending and ensure that employees are following company policies. You can even automate the process of matching receipts to transactions.

Business credit cards also make it easy to view your company's card subscriptions in one place, allowing you to spot and cancel duplicates. This helps prevent unnecessary fees and keeps your company's finances in order.

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Credit card providers are essential for US startups to access the funds they need to grow.

American Express is a popular credit card provider for startups, offering cards with rewards and cashback programs.

Startups can apply for American Express cards through their website or by calling their customer service.

Capital One is another major credit card provider that offers cards with competitive interest rates and rewards.

According to the article, Capital One offers cards with interest rates as low as 13.99%.

Bank of America is a leading bank that offers credit cards to startups, with cards that offer cashback and rewards.

Startups can apply for Bank of America credit cards online or by visiting a local branch.

Additional reading: Credit Cards with Gift Card Rewards

Getting approved for a business credit card can be a challenge, especially for young startups with limited company history. To boost your approval odds, apply using your Social Security Number to link the card to your personal credit record, which is typically more established.

Highlighting your income is crucial, so list your personal income sources from other jobs or investments on the application to showcase your ability to repay. This is a key factor in getting approved.

Consider getting a secured business credit card first, which requires a refundable deposit. This can help build initial business credit and increase your chances of getting approved.

To make a strong case for approval, provide realistic estimates of your startup's anticipated annual revenue. Lenders like to see growth potential and will view this as a positive factor.

Existing bank relationships can also work in your favor, so apply with existing bank relationships if possible. This can give you a leg up in the approval process.

Consider reading: Why Am I Getting Declined for Credit Cards

Managing expenses is a crucial aspect of running a U.S. startup, and credit cards offer a range of features to help you stay on top of your company's spending.

With the right credit card, you can issue physical or virtual cards to your team, either individually or in bulk with integrations like Google Workspaces. This makes it easy to manage your team's spending and keep track of who has access to your account details.

You can set custom limits and expiration dates for team members' cards, and even lock cards to specific merchants, giving you more control over company spending. This can be especially helpful for businesses with multiple individuals making purchases for the company.

Here are some key features to look for in a credit card for your startup:

By using these features, you can save money and stay on top of your company's spending.

Expense management is a crucial aspect of running a business, and having the right tools can make all the difference. You can issue physical or virtual cards to your team, either individually or in bulk with Google Workspaces integration.

Some expense management features include setting custom daily, weekly, or monthly spend limits for individual team members, as well as custom card expiration dates. This level of control can help you stick to your budget and avoid overspending.

For more insights, see: Custom Credit Card Sized Cards

Another feature is the ability to lock cards to specific merchants, which can help prevent unnecessary purchases. For example, you can create cards locked to popular business expenses like office supplies or travel.

To make expense tracking easier, some systems allow you to set up company-wide spend policies requiring employees to upload receipts or add notes for card transactions above a specified amount. This can help you stay organized and ensure that all expenses are properly documented.

Some expense management tools also offer automatic receipt matching, where receipts are automatically matched to the right transaction. This can save you time and reduce the risk of errors.

Here are some key expense management features to look for:

Reporting to Bureaus is a crucial aspect of managing expenses. Selecting a credit card that reports payment history to major business credit bureaus like Dun & Bradstreet can help build your startup's credit profile for future borrowing needs.

This is especially important for startups that plan to grow and expand in the future. By reporting to business credit bureaus, you can establish a good credit history and improve your chances of securing loans or credit when you need it.

Regularly paying off your credit card balance can also help you build a positive credit history. This will show up on your business credit report and demonstrate your ability to manage debt responsibly.

A fresh viewpoint: Credit Cards for First Timers with No Credit

For very early-stage startups, a business credit card might not be the best option yet. A personal credit card can be used temporarily for startup expenses.

If you're looking for alternatives to traditional business credit cards, consider business charge cards, which offer no preset spending limit and are backed by business assets.

Prepaid debit cards are another option, allowing you to load funds for business expenses monthly to minimize overspending.

Business lines of credit, unsecured and without a fixed monthly payment, can also be a good choice for startups.

Business checking account credit lines, linked to business bank accounts, offer variable repayment terms.

Business term loans provide a lump sum of financing for a fixed term.

Here are some alternatives to business credit cards for startups: