Author Topic: Best credit card for a small business?  (Read 2775 times)

Ladychips

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Best credit card for a small business?
« on: May 12, 2016, 05:15:04 PM »
My brother and I have a small business buying and renting houses.  We need a credit card to share.  Any thoughts on a great one?  We'd prefer one with no annual fee and cash back.  I appreciate any advice.

homelesshobbit

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Re: Best credit card for a small business?
« Reply #1 on: May 12, 2016, 06:13:45 PM »
I use the Chase Ink Business Plus but is does have an annual fee of $95 the sign up bonus is worth $600 cash back if you want to negate that fee though?

it gets 5x Ultimate Reward Points on
Internet
Phone
TV
Office Supply Stores

it gets 2x UR points on
Gas
Travel

and 1 Point on everything else.

this card is very cool because you can DL the Chase Ink app and when a transaction occurs, you get an immediate notification to your phone. Even your Authorized users charges will trigger the notification. I have prevented fraud on 2 separate occasions because of this feature.

let me know if you have any other questions.

GrOW

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Re: Best credit card for a small business?
« Reply #2 on: May 12, 2016, 06:53:55 PM »
I would second chase ink for the ultimate rewards. Very very hard to beat that card.

That said, I would keep separate cards even if in business name. I don't do joint debt with anyone including family.

homelesshobbit

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Re: Best credit card for a small business?
« Reply #3 on: May 12, 2016, 08:49:09 PM »
I would second chase ink for the ultimate rewards. Very very hard to beat that card.

That said, I would keep separate cards even if in business name. I don't do joint debt with anyone including family.

Maybe one can get the Ink + and the other get Chase Sapphire Preferred?

Ladychips

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Re: Best credit card for a small business?
« Reply #4 on: May 13, 2016, 04:34:19 AM »
Thanks for the suggestions.  I've been reading up on both cards and the way bonuses actually work are not very clear to me.  It's says earn 60,000 points and then says thats $750 toward travel.  Does that mean I have to spend specifically on travel and it's a reimbursement?  I'm guessing it's not just 'notify them and they send me a check' (which is how my personal credit card works).  Apparently, I am one of the few people on the planet who doesn't particularly like to travel (although I'm taking two big trips this year!), plus I prefer just straight cash back so that we can just put it back in the business rather than something that personally benefits us.  The terms don't clarify.  Thoughts?

lakemom

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Re: Best credit card for a small business?
« Reply #5 on: May 13, 2016, 05:16:54 AM »
Do you have a joint checking account for the business?  Just get debit cards.  Or are you using the credit as a float for expenses while houses are empty?

GrOW

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Re: Best credit card for a small business?
« Reply #6 on: May 13, 2016, 06:24:56 AM »
Thanks for the suggestions.  I've been reading up on both cards and the way bonuses actually work are not very clear to me.  It's says earn 60,000 points and then says thats $750 toward travel.  Does that mean I have to spend specifically on travel and it's a reimbursement?  I'm guessing it's not just 'notify them and they send me a check' (which is how my personal credit card works).  Apparently, I am one of the few people on the planet who doesn't particularly like to travel (although I'm taking two big trips this year!), plus I prefer just straight cash back so that we can just put it back in the business rather than something that personally benefits us.  The terms don't clarify.  Thoughts?
/
On the Ultimate Reward (UR) points - You will earn the points for spending the required amount in the required time period. The big block of points is credited typically during the statement period after the period in which you pass the spending requirement (so don't freak out if you don't get the points right away or even for a few weeks).

You have three ways to use your UR points:
1. Redeem for cash/check. Typically $0.01 per point. Easy money but not best bang for your buck/point.
2. Redeem on the UR site for their travel deals. This is how they give you a $xx in travel amount. This conversion is a bit better than option 1 since it is about $0.0125 per point. Good but still not the best option.
3. Transfer UR points, 1:1, to certain other rewards programs. I believe currently there are 4 airlines and 4 hotels points programs eligible for points transfer. The conversion makes it harder to value the points but I would highly recommend Hyatt for hotels and Southwest for flights. I have booked a number of night at Hyatt via points transfer and thought the value was great. Hotel night would have cost $155-200 a night and I was able to get them for 5,000-8,000 UR points transferred. That works out to be about $0.025 -0.031 conversion which handily beats options 1&2 above.




homelesshobbit

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Re: Best credit card for a small business?
« Reply #7 on: May 13, 2016, 06:29:16 AM »
the 60k UR points are worth $600 cash or quit a bit more IF you decide to redeem points for travel related things like Hotel or Airline redemption. My room in Hawaii with was about $450 OR 25k UR points transferred to Hyatt.

Ladychips

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Re: Best credit card for a small business?
« Reply #8 on: May 14, 2016, 04:23:59 AM »
Lakemom - we do have a checking account but I never even thought about debit cards.  I have never had one because they seem so unsafe to me.  But it's a viable (and quick) option.  I'll talk to my brother about it.  I tend to like credit cards because they are so easy to keep track of what the heck we are doing with it!  What I like most about the suggestion is that was so unexpected to me.  I always appreciate ideas that jar my thinking (regardless of whether I incorporate the actual idea... it reinforces to me that there are MANY way to tackle a problem... not just the way I have in my head).

GrOW - I also appreciate your concern about money relations with family.  I realize that this is some folk's worst nightmare.  My family is pretty special (we get along freakishly well, are similar in ways that are important, and different in ways that contribute to the success of our business).  I feel very confident about being in business with him.  Hey!  I saw you roll your eyes!  It's good to hear different viewpoints and I appreciate your taking the time to share.

Thanks for the clarifying information on the rewards - super helpful!. 

What a great place to hang out!