Best credit card for small business startup in 2024
Companies across the globe use credit cards as a commonly preferred tool for making business payments. Not only do credit cards offer an easier alternative to cash payments but they also come with a host of features, perks, and benefits that help businesses save a lot of money and resources.
For small businesses and startups in particular, the line of credit and accompanying benefits that credit cards provide can be a massive help.
However, with a multitude of options available in the market choosing the best business credit cards for startup companies can be a challenging task. You need to carefully weigh your options and choose the best credit card for small business startup that suits your business requirements.
Best credit card for small business startup
1. Volopay
Overview
Volopay stands out as a comprehensive financial solution that can work very well for small business startups. This card is designed to simplify expense management, streamline financial workflows, and offer businesses greater control over their spending.
Set-up process and requirements
The setup process for obtaining a Volopay card is relatively straightforward. Interested businesses can apply online, providing necessary documentation such as business registration details, financial statements, and basic information about the business.
The approval process is efficient, and once approved, the physical card is delivered to the business address.
Key features of the card
● Expense management
Volopay excels in providing tools for efficient expense management. The card allows users to set spending limits, capture receipts digitally, and categorize expenses in real-time.
● Multi-currency support
With Volopay, businesses operating on a global scale can benefit from its multi-currency support, facilitating international transactions without the hassle of currency conversion.
● Virtual cards
Volopay provides highly secure, fully equipped virtual cards. These cards help facilitate seamless online transactions and eradicate the necessity for physical cards. This functionality is especially beneficial for activities such as travel expense management, online purchases, and subscriptions.
● Integrated software
The card comes with integrated card management software that provides insights into spending patterns, helping businesses make informed financial decisions.
Limitations
While Volopay is a robust solution, it may not be suitable for all types of businesses and startups. There may be restrictions placed on transactions, balances, and so on for certain individual cases.
Targeted customers
The features and usability of Volopay are highly scalable and therefore the platform can adapt to the needs of a variety of businesses. It is particularly beneficial for businesses with frequent expenses, international transactions, and a need for streamlined expense management.
2. SBI Platinum Corporate Card
Overview
The SBI Platinum Corporate Card is a product offered by the State Bank of India and an excellent choice if you are considering a small business credit card. This card is aimed at providing financial solutions for corporate needs. It caters to small business startups, offering a range of features to facilitate smooth financial operations.
Set-up process and requirements
Businesses interested in the SBI Platinum Corporate Card can apply through the State Bank of India's corporate banking services. The application process typically involves submitting business details, financial statements, and other relevant documents. Once approved, businesses receive their physical cards.
Key features of the card
● Global acceptance
With international acceptance, the SBI Platinum Corporate Card facilitates transactions beyond borders, making it suitable for businesses engaged in global activities.
● Concierge services
This card may offer concierge services, providing businesses with additional assistance, such as travel bookings and reservations.
● Rewards program
The SBI Platinum Corporate Card features a rewards program that enables businesses to accumulate points based on their expenditures. These points are redeemable for a range of benefits, including discounts, vouchers, and travel rewards.
● Expense tracking
The card is equipped with tools for efficient expense tracking, aiding businesses in monitoring their expenditure patterns and enhancing the efficiency of budget management.
Limitations
One potential limitation could be that the rewards program may not be as lucrative for businesses with lower spending volumes. Additionally, businesses should be mindful of any associated fees and the interest rates applicable to the card.
Targeted customers
The SBI Platinum Corporate Card is particularly useful for small businesses seeking a credit card with a rewards program, expense tracking features, and global acceptance. It is one of the best business credit cards for startups with a focus on earning rewards for their regular expenditures.
3. HDFC Business MoneyBack Credit Card
Overview
The HDFC Business MoneyBack Credit Card is designed to cater to the financial needs of a wide range of businesses, offering a range of features to support their operations. With a focus on cashback benefits, this card aims to provide tangible returns on business expenses.
Set-up process and requirements
Businesses can apply for the HDFC Business MoneyBack Credit Card through the HDFC Bank's application process. The application typically involves submitting business documents, financial statements, and other relevant information. Once approved, businesses receive their physical cards.
Key features of the card
● Expense tracking
Similar to other business credit cards, the HDFC Business MoneyBack Credit Card provides tools for effective expense tracking and management.
● Milestone benefits
The card may offer milestone benefits, where businesses receive additional rewards or bonuses upon reaching specific spending milestones.
● Cashback features
Arguably the most important aspect of this card is its cashback rewards initiative, enabling businesses to receive a portion of their spending as cashback. This proves to be a valuable feature for businesses aiming to optimize returns on their routine expenditures.
Limitations
Businesses should be aware of any associated fees, including annual fees and interest rates. Additionally, the cashback rewards may vary based on spending categories, and businesses should review the terms to ensure alignment with their expenditure patterns.
Targeted customers
The HDFC Business MoneyBack Credit Card is targeted at small businesses seeking credit cards with a focus on cashback rewards. It may be particularly attractive to businesses looking for tangible returns on their everyday expenses.
4. Citi Corporate Credit Card
Overview
The Citi Corporate Credit Card is another one on the list of some of the best small business credit cards that have been tailored for small business startups seeking financial flexibility and convenience in managing expenses.
As a Citibank product, this card comes with a range of features designed to help early-stage businesses meet their specific needs.
Set-up process and requirements
Setting up the Citi Corporate Credit Card involves a straightforward application process. Small business owners can apply online or visit a Citibank branch to initiate the process.
The requirements typically include proof of business registration, financial statements, and details about the business owner's credit history. The approval process is efficient, making it accessible for startups.
Key features of the card
● Expense management tools
The card offers robust expense management tools, allowing businesses to track and categorize their spending efficiently.
● Credit limit
Citi provides a competitive credit limit, offering startups the financial flexibility they need to manage operational expenses and investments.
● Global acceptance
With worldwide acceptance, this card is suitable for businesses engaged in international transactions, providing convenience and accessibility.
● Rewards program
The Citi Corporate Credit Card features a rewards program that allows businesses to accumulate points through transactions, which can be exchanged for diverse benefits such as travel and merchandise.
Limitations
While the card offers valuable features, it may come with an annual fee. Startups should evaluate whether the benefits outweigh the costs based on their spending patterns.
Additionally, like many credit cards, the interest rates can be relatively high, so it's essential for startups to manage their balances effectively to avoid accumulating debt.
Targeted customers
The Citi Corporate Credit Card caters to a diverse range of business needs and is particularly well-suited for small business startups seeking a comprehensive financial solution to streamline expense management. This card offers the appropriate credit flexibility, along with incentives and rewards, that are essential for such organizations.
5. Axis Bank My Business Credit Card
Overview
Provided by one of the nation's leading banks, the Axis Bank My Business Credit Card is an excellent option for businesses seeking a well-equipped card.
With a range of features and benefits aimed at promoting business growth and financial management, this small business credit card serves as an effective means to meet the unique needs of small-scale businesses.
Set-up process and requirements
Axis Bank simplifies the application process for the My Business Credit Card. Small business owners can apply online or visit a local Axis Bank branch.
The requirements typically include business registration documents, financial statements, and the business owner's credit history. The streamlined application process ensures quick access to credit for eligible startups.
Key features of the card
● Customizable spending limits
The card provides businesses with the flexibility to set spending limits based on their specific needs, offering control over expenses.
● Reward points
Additionally, this card offers a highly rewarding points program, allowing businesses to accumulate points with each transaction. These earned points can be exchanged for a range of advantages, such as shopping vouchers, travel benefits, and other perks.
● Discounts and offers
Axis Bank often provides exclusive discounts and offers on partner platforms, providing additional value for cardholders.
● Online account management
Small businesses can manage their card accounts online, making it convenient to track expenses, pay bills, and access statements.
Limitations
Like any small business credit card, businesses need to be mindful of interest rates and manage balances effectively to avoid accruing high-interest charges.
Additionally, the card may have an annual fee, and startups should evaluate whether the associated benefits justify this cost.
Targeted customers
The My Business Credit Card provided by Axis Bank is a perfect choice for small enterprises that are in preference of a personalized credit solution.
Given attributes such as limits, adaptable spending, online account management, and rewards, this card can provide quite a comprehensive solution to such enterprises.
6. AMEX Platinum Travel Credit Card
Overview
The AMEX Platinum Travel Credit Card is a premium option for small business startups that frequently engage in business travel.
Issued by American Express, these Business credit cards for startups offer a range of travel-related benefits and rewards.
Set-up process and requirements
The application process for the AMEX Platinum Travel Credit Card involves submitting necessary business documents, personal financial information, and a credit check.
American Express typically targets businesses with a stable financial standing to ensure eligibility for this premium offering.
Key features of the card
● Travel rewards
The card is tailored for businesses with a focus on travel. It offers significant travel rewards, including air miles, hotel stays, and other travel-related perks.
● Airport lounge access
Cardholders gain access to premium airport lounges worldwide, providing a comfortable and productive environment during business travel.
● Travel insurance
The card often includes comprehensive travel insurance coverage, offering protection for unexpected events during business trips.
● Concierge services
Businesses can benefit from concierge services, assisting with travel arrangements, reservations, and other logistical support.
Limitations
The AMEX Platinum Travel Credit Card typically comes with a higher annual fee compared to standard credit cards. Startups should assess whether the travel benefits justify the associated costs.
Moreover, while American Express cards are widely accepted, there may be instances where merchants may prefer other card networks.
Targeted customers
The AMEX Platinum Travel Credit Card is ideal for small businesses heavily involved in business travel, seeking premium travel rewards, airport lounge access, and comprehensive travel insurance.
7. Kotak Corporate Platinum Credit Card
Overview
The Kotak Corporate Platinum Credit Card is a strategic financial tool designed to empower small businesses in their early stages.
Issued by Kotak Mahindra Bank, these Business credit cards for startups cater to a whole host of financial needs, offering a diverse range of features to facilitate efficient expense management and provide valuable financial flexibility.
Set-up process and requirements
Kotak simplifies the application process for the Corporate Platinum Credit Card. Small business owners can apply online or visit a local Kotak Mahindra Bank branch.
The application typically requires business registration documents, financial statements, and the business owner's credit history. The efficient approval process ensures quick access to credit for eligible startups.
Key features of the card
● Expense tracking
The card comes with robust expense-tracking features, allowing businesses to categorize and monitor their spending efficiently.
● Credit limit
Kotak offers a competitive credit limit, providing startups with the financial freedom to manage operational expenses and investments.
● Reward points
The card features a reward points program, enabling businesses to earn points on transactions that can be redeemed for various benefits, including travel and merchandise.
● Fuel surcharge waiver
Businesses can benefit from a fuel surcharge waiver at participating fuel stations, helping to manage transportation costs.
Limitations
As with any credit card, the interest rates on outstanding balances can be relatively high. It's imperative for startups to manage their balances judiciously to avoid accruing significant interest charges over time.
While the Kotak card offers a rewards program, startups should carefully review the terms and conditions to understand any limitations or restrictions on earning and redeeming reward points. This can impact the overall value derived from the card's rewards program.
Targeted customers
Any business seeking comprehensive financial tools for expense management, credit flexibility, and rewards can go for the Corporate Platinum Credit Card offered by Kotak Bank. It provides an end-to-end solution for various business payable obstacles.
Take charge of your business expenses
Importance of business credit cards for startups
Convenience
Business credit cards are a far more convenient method of payment than checks or cash. You won’t have to carry around any checkbooks or wads of cash if you use credit cards. Moreover, controlling expenses is also much easier with business credit cards.
Greater flexibility
Having a business credit card at your disposal can greatly improve the flexibility that you can exercise when spending. In cases of emergencies when you run out of cash funds and have to make a payment you can simply avail of the credit line offered by your business credit card.
Build company credit
The more you use a credit card and the way you pay the credit you have availed back helps build a good credit score for your business. Having a good credit score will help you a lot in the future if you are to apply for any loans or funding.
Separate personal and business finance
Having a dedicated credit card for business use helps business owners keep their personal finances separate from business finances. This becomes particularly important during tax time when you have to consolidate all your business expenses for tax calculation.
Increased access to capital
The credit line offered by business credit cards also helps boost the amount of capital that a business has access to. Businesses should always work with a balance of equity and debt, business credit cards ensure and improve the access businesses have to debt financing.
Better cash flow management
Business credit cards are useful tools when it comes to cash flow management. When you use business credit cards to make payments your transactions are logged and recorded instantaneously. This gives you real-time updates on the outflow of funds from your organization.
Important documents required when applying for business credit card
Some of the main documents that are required for getting a business credit card are:
• Identification documents (for example Authorised Account Administrator name, admin's copy of a valid ID such as Passport, Employment pass or NRIC, and Authorised signatories details)
• Audited financial statements
• GST certificate & GST number
• CIN number and company details
• Latest bank statements
How to get a Volopay corporate card for your business in India?
To obtain a Volopay corporate card for your business in India all you need to do is meet a certain set of eligibility criteria. This includes:
Basic conditions
To get a Volopay corporate card in India there are some basic conditions that you and your business must meet. This includes factors such as nationality and age of the business owner or applicant and type of business entity.
Typically, the applicant must be at least 21 years and at most 70 years of age, they must also be an Indian citizen.
You must also be a business entity that is one of the following - partnership firms, startups, LLPs, charities and NGOs, banks, sole proprietors, and organizations run by the government.
Profit and revenue numbers
The past performance records and growing numbers of the applying business entity must also match eligibility requirements. The applying entity must have a positive growth record as well as solid projections for the future.
To establish these numbers applicants may have to provide bank statements, profit and loss statements, income, or other financial statements.
Credit score
When an applicant's position is being reviewed their credit score is also an important factor that is taken into account, similar to how your credit score will be required for a personal credit card.