Choose the Ideal Business Credit Card for Your Startup with These Simple Steps

Written by
Marissa Saini
Last Modified on
December 19, 2023

Is your small business growing exponentially? Or perhaps you’re ready to scale your startup beyond borders? If you answered yes to those questions, it’s probably time to consider getting a business credit card for your company.

Let’s dive straight into the benefits of a corporate credit card, how it can benefit your business, and tips on how to make the right choice. 

Why use a business credit card? 

Although it’s completely acceptable for entrepreneurs to use their personal cards for business expenses, there are much greater benefits to using a business credit card. These include: 

  • Separating your personal and business expenses: For seamless record-keeping, business owners should distinguish their work financial activity from their personal activity with a corporate credit card.
  • Establishing business credit: Each time you spend with your corporate card, it boosts your business credit rating, giving founders better chances of securing credit card and loan approvals. 
  • Take advantage of perks: Most credit card users enjoy various benefits that are not offered by personal credit or debit cards. Such benefits include higher credit limits, signup bonuses and even cashback rewards. 
  • Higher credit limits: Often, business credit cards offer larger spending limits on corporate cards than personal ones. With more credit to spend, you can make purchases that may not have been possible with the cash your company has on hand. 

Now that you’re all caught up with why a business credit card can do more good for your company, here are six tips on how to get started. 

Tips on choosing the right business credit card for startups 

  • Go back to credit card basics 
  • Review your credit score 
  • Assess your business’ expenditure
  • Calculate the annual fees 
  • Look into rewards programmes and perks 
  • Consider corporate cards for teams 

1. Go back to credit card basics

Apart from providing short-term access to funds, most startup founders and business owners don’t understand the basics of a business credit card. Here are a few fundamentals to take note of: 

  • Credit card usage: Corporate credit cards for startups should only be used for business expenses. Based on your credit card terms and agreement, the use of credit cards for personal expenses may be considered a violation. 
  • Different types of corporate cards: The most common corporate cards are the standard business credit card and a charge card. A business credit card allows cardholders to carry a balance month-to-month with interest while charge cards require founders to pay the bill in full each month. 
  • Personal guarantees: Most corporate cards require applicants to make a personal guarantee. If your business revenue is unable to cover the charges, this ensures that they will pay off the balance with their own funds. 

Ensure that you understand the fundamentals of credit cards before diving in headfirst. But take note that these basics only scratch the surface. Do your due diligence and build your knowledge base on business credit cards to make an informed decision. 

2. Review your credit score

Before applying for a business credit card, it’s important to check your business credit score. This will decide the types of business credit cards you are eligible for, along with the credit limit and interest rates you can expect. 

While your personal and business credit scores are completely different, some banks may request your personal credit score to further assess your creditworthiness.

If your score is on the lower end of things, you may want to work on improving your business credit score before applying to avoid negative entries in your report. 

3. Assess your business' expenditure

This step is especially important when comparing the various point systems and rewards of the different corporate cards available. Look over your spending in the last three to six months and pay attention to your biggest operating costs during this period. This could range from travel, office supplies, or even business software. 

A clearer overview of your business expenditure can give you a rough gauge on your eligible rewards and how your spending might look like with different cards. 

4. Calculate the annual fees

A corporate card’s annual fees is an essential consideration when making your decision. While some banks don’t charge an annual fee, try not to eliminate options with annual fees right off the bat.

Some of these banks may offer competitive signup bonuses and better rewards, making the annual fee worthwhile in the end. 

On the other hand, banks with zero annual fees may have lesser perks. Always weigh your options carefully, look at your business lifestyle, and do the math. 

5. Look into rewards programmes and perks

When looking for the best business credit for their company, one of the most essential factors applicants look out for are rewards programmes and perks. However, just because a bank provides perks doesn’t mean it automatically aligns with your business needs. 

If you engage in business travel frequently, you’d want a credit card that offers travel perks like miles rewards and flight insurance Similarly, for those who spend a significant sum on online advertising, consider a business credit card with cashback features on digital marketing spend. 

Always ensure that the rewards programme matches your business needs to get the most out of your credit card. 

6. Consider corporate cards for teams

Corporate credit cards for team members are becoming increasingly common among financial institutions in Singapore. Issuing employee cards allows you to extend purchasing power to key team members, streamlining your corporate expense processing. While this can also help small business owners, companies with more employees can benefit greatly from this feature. 

With the abundance of options in the market, it may be a challenging feat to find the best corporate credit card for startups. To get you started, we’ve created a resource just for you to explore your options. 

The Smartest Corporate Card, Within Reach 

Get started on your journey with corporate cards for teams with the Aspire. With the Aspire Virtual Card, founders and their team members can explore a myriad of features that can take their business to the next level. 

Enjoy cheaper rates on FX transfers, integrations on accounting software you already use, expense management, and cashback on qualifying digital spend. 

Sign up in just five minutes and take hold of the smartest corporate card in Singapore today! 

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About the author
Marissa Saini
is a seasoned writer and an avid trendspotter across business finance, personal finance, travel and lifestyle industries. With writing history at SingSaver, INK, and ohmyhome, Marissa leverages her broad range of experiences to simplify finance and make readers financially savvy.
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