Monthly Archives: August 2017

Credit Cards for Startups

As the founder of a startup, there are plenty of good reasons for you to consider using a business credit card. Not only can it help you keep personal and business finances separate, it can come in handy for covering cash flow, building your credit history, and saving money through various perks and rewards.

Not all business credit cards for startups are equal, however, and you’ll want to choose one that best fits the needs of your business. If you’re required to travel often, for example, you might want to go with a card that offers great airfare and hotel rewards. If you’re looking to transfer existing debt from a high cost loan or credit card, you’ll want to choose a card with a low or zero balance transfer fee. Others who plan to carry a balance might choose one with a low interest rate.

Why wouldn’t I just use my personal credit card?
Well, glad you asked. Here are three serious advantages to using a business credit card for business purchases:

Having a business credit card allows you to keep your personal and business expenses separate. You’ll be able to track business expenses more easily, making tax time, as well as maintaining a company budget, much less of a headache.
By getting a card in the name of your business you’ll start to establish a business credit score separate from your personal one. That means that if you have to make a late payment, your business credit will take the hit instead of your personal credit (there are exceptions—read about which business credit cards report to personal credit bureaus here).
As you start to establish a business credit profile, you’ll build your business’s credibility. When it comes time to apply for other business financing, solid business credit scores can help you qualify for more financing at better rates.

Pros:

Credit needed: fair (625 personal credit score)
No annual fee
Rewards earn 1% cash back on all purchases
Cons:

High interest: 23.99% (Variable) as of October 10th 2017 APR
Late payment fee: Up to $39

The Capital One® Spark® Classic for Business card allows cardholders to earn rewards with no annual fee, and you don’t need an excellent personal credit scores to qualify. As a huge bonus, business owners who make on time payments and keep their balances low can build business credit. It’s worth noting, however, that Capital One may report your business payment history to personal credit reporting agencies, thus your personal credit scores could be affected by your business spending.

Plenty of good reasons for you to consider using a business credit card

As the founder of a startup, there are plenty of good reasons for you to consider using a business credit card. Not only can it help you keep personal and business finances separate, it can come in handy for covering cash flow, building your credit history, and saving money through various perks and rewards.

Not all business credit cards for startups are equal, however, and you’ll want to choose one that best fits the needs of your business. If you’re required to travel often, for example, you might want to go with a card that offers great airfare and hotel rewards. If you’re looking to transfer existing debt from a high cost loan or credit card, you’ll want to choose a card with a low or zero balance transfer fee. Others who plan to carry a balance might choose one with a low interest rate.

Why wouldn’t I just use my personal credit card?
Well, glad you asked. Here are three serious advantages to using a business credit card for business purchases:

Having a business credit card allows you to keep your personal and business expenses separate. You’ll be able to track business expenses more easily, making tax time, as well as maintaining a company budget, much less of a headache.
By getting a card in the name of your business you’ll start to establish a business credit score separate from your personal one. That means that if you have to make a late payment, your business credit will take the hit instead of your personal credit (there are exceptions—read about which business credit cards report to personal credit bureaus here).
As you start to establish a business credit profile, you’ll build your business’s credibility. When it comes time to apply for other business financing, solid business credit scores can help you qualify for more financing at better rates.
Let’s take a closer look at a few business credit cards that might help you take your company to the next level.

Secure way for business owners to get the funds

Business credit cards offer a quick and secure way for business owners to get the funds they need to run their business smoothly, take advantage of growth opportunities, provide breathing room when business is slow, safeguard personal finances from actions of the business, and more.
We created this guide to set you on a path to make the most out of business credit cards. Here’s a taste of what’s inside:

The incredible advantages of business credit cards
How business credit cards affect both your business AND personal credit
How to find our your approval odds before you apply
The type of business card you should avoid
Hacks to earn rewards and flights from your business credit card
Download The Ultimate Business Credit Card Guide Now For Free.

Nav offers dozens of the top business credit cards, and the most small business financing options available in one place. Sign up for a free Nav account to see your approval odds on business financing options before you apply.

The Platinum Delta SkyMiles card from American Express is a great card for frequent Delta travelers who plan to make a large amount in purchases ($50,000+) on their card each calendar year. This card has a killer signup offer—Earn 35,000 bonus miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $1,000 in purchases on your new Card in your first 3 months. Earn a $100 statement credit after you make a Delta purchase with your new Card within your first 3 months. MQMs help you get closer to reaching Medallion status in the Delta SkyMiles program.

Added benefits:

Earn 2 Miles per dollar spent on purchases made directly with Delta. Earn 1 mile on every eligible dollar spent on purchases.
No foreign transaction fees.
Earn more miles with boost programs: 10,000 bonus miles and 10,000 MQMs after $25,000 in purchases each calendar year, as well as another bonus after $50,000.
Earn a domestic, round-trip companion pass each year you renew the card.
Added Delta bonuses: free checked bag, priority boarding, 20% savings (via a statement credit) on eligible purchases made in-flight.

Tough Act to Follow

For the first time this century, investors benefited from synchronized global growth. The U.S. stock market (S&P 500) and developed global markets (MSCI Foreign Stock Index) both returned over 20% for the year.

U.S. investors bid up the price of shares on anticipation of lower taxes and higher corporate profits. The Federal Reserve believed the U.S. economy was strong enough to absorb three interest rate hikes during 2017, forecasts are for three more in 2018. Unemployment is low at 4.1% and expected to go lower. Consumer confidence is high – household net worth in the fourth quarter may have reached $100 trillion for the first time.

Market Rally Was Led by FAANG (Facebook, Amazon, Apple, Netflix, Google).

The huge rally in technology companies has shifted the sector weightings of the S&P 500 Index. In 2017 technology’s share of the index increased by 3%. Now at over 23%, tech stocks are the biggest sector in the S&P 500, by far. Financials and health care are next with 14% each. The run up in Amazon stock has pushed Jeff Bezos ahead of Bill Gates as the world’s richest man.

S&P 500 Was Perfect and Calm.

The S&P 500 index did not fall below its12/31/2016 level on even one day during 2017. For the first time in its history, with dividends included, the S&P 500 did not have a single month with a negative return and 2017 did not see a single day with a greater than 2% move in the S&P 500, either up or down. The biggest intra-year drop amounted to just 2.8%, the smallest decline since 1995. The average intra-year pull back is 13.6%

Where Do We Go From Here?

We don’t know, no one knows. As John Kenneth Galbraith said, “The function of economic forecasting is to make astrology look respectable.” This bull market is up 376% from its March 9, 2009, low. However, bull markets don’t die of old age. Since 1950, the S&P 500 has risen at least 20% (including reinvested dividends) 24 times, not including 2017. In the year that followed, the index finished higher 19 times with an average gain of 18.1%.

Business Credit Cards for Travel

Business road warriors are used to packing their bags. But wouldn’t it be more exciting to get ready for your upcoming trip if you knew there were sweet rewards involved?

That’s where business credit cards come in. You probably know of or have a personal credit card that rewards you for your purchases with miles or points that you can spend on flights or hotel stays. But business credit cards for travel sometimes offer even better rewards than personal cards, along with a host of other perks including helping you separate your personal and business finances and build business credit.

Here are some of the best business credit cards for travel we’ve identified for frequent flyers that could be a big win for your business.
The Platinum Delta SkyMiles card from American Express is a great card for frequent Delta travelers who plan to make a large amount in purchases ($50,000+) on their card each calendar year. This card has a killer signup offer—Earn 35,000 bonus miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $1,000 in purchases on your new Card in your first 3 months. Earn a $100 statement credit after you make a Delta purchase with your new Card within your first 3 months. MQMs help you get closer to reaching Medallion status in the Delta SkyMiles program.

Added benefits:

Earn 2 Miles per dollar spent on purchases made directly with Delta. Earn 1 mile on every eligible dollar spent on purchases.
No foreign transaction fees.
Earn more miles with boost programs: 10,000 bonus miles and 10,000 MQMs after $25,000 in purchases each calendar year, as well as another bonus after $50,000.
Earn a domestic, round-trip companion pass each year you renew the card.
Added Delta bonuses: free checked bag, priority boarding, 20% savings (via a statement credit) on eligible purchases made in-flight.
Drawbacks:

If Delta isn’t a convenient airline for you, this won’t be the best card.
Annual fee: $195

The Starwood Preferred Guest Business Credit Card from American Express offers a flexible rewards program for frequent flyers of many different airlines who enjoy comfortable resort and hotel stays. Earn 25,000 bonus Starpoints® after you use your new Card to make $5,000 in purchases within the first 3 months. Along with a generous rewards program, new cardholders will earn additional bonus points if they spend even more. Earn SPG Gold status after 30,000 in purchases on your card in a calendar year, which allows you to score more hotel upgrades, late checkouts, welcome gifts during hotel stays, and more.

Added benefits:

Five “starpoints” per dollar spent at Starwood Hotels, two points per dollar at Marriott Reward hotels, and one point on all other purchases.
Points can be redeemed at over 1,300 hotels and resorts, and over 150 airlines within the SPG program.
No foreign transaction fees.
Free Boingo WiFi at over 1M Boingo hotspots.
Access to Sheraton Club Lounge.

Big Rewards and No Annual Fee

Business owners have their choice of dozens of different credit cards. These products range from premium rewards cards with numerous features and benefits, to simple cards that do little more than offer a convenient method of payment. The challenge for many business owners is finding the right business credit card that meets their needs while offering the best balance of costs and benefits. The Chase Ink Business Cash℠ Credit Card offers generous rewards and attractive promotional financing, with a $0 annual fee.

Why We Like the Chase Ink Business Cash℠ Credit Card
Sign-up bonus. New applicants Earn $300 bonus cash back when you spend $3,000 on purchases in the first 3 months from account opening. as of October 10th 2017
Rewards for spending. Earn 5% cash back in select business categories. Rewards are earned as points in Chase’s Ultimate Rewards program, which can be redeemed for cash back, statement credits, travel reservations, gift cards and merchandise. Points can also be combined with rewards that you’ve earned from other Chase business or consumer credit cards, or the cards of your employees, spouse or domestic partner.
Promotional financing. New accounts receive 0% Intro APR on Purchases for 12 months and 0% Intro APR on balance transfers for 12 months as of September 14th 2017, with a balance transfer fee of Either $5 or 5% of the amount of each transfer, whichever is greater. as of October 10th 2017.
Strong benefits. This card comes with several travel insurance and purchase protection benefits. When traveling, you’ll receive auto rental collision damage waiver coverage as well as access to travel and emergency assistance services including roadside dispatch. However, you will be responsible for payment for any services provided.
Low rates and fees. Once the promotional financing offer expires, a 14.24% – 20.24% Variable as of October 10th 2017 APR will apply. The annual fee for the card is $0.
Where the Chase Ink Business Cash℠ Credit Card Falls Short
Rewards points can’t transfer to travel partners. Other Chase cards that offer Ultimate Rewards points allow cardholders to transfer their points to airline miles and hotel points.
Limits on bonus categories. This card only lets you earn 5x rewards on up to $25,000 in combined purchases from office supply stores and Internet, cable and phone service providers. It also has a separate, $25,000 limit on 2x earnings from gas stations and restaurants. For some business owners, that spending amount may limit their rewards earning potential.
Foreign transaction fees. This card imposes a foreign transaction fee of 3% of each transaction in U.S. dollars Many rewards cards no longer charge this fee.
High balance transfer fee. The balance transfer fee is higher than most other cards that charge just 3%.
How to Make the Most of Its Perks
Maximize its bonus categories. This card should be at the top of your wallet whenever you need to make a purchase from an office supply store or from a telecommunications provider where you can earn 5x rewards. Earning 2x rewards at gas stations and restaurants is also valuable.
Combine points with other Chase cards. If you have this card as well as a Chase Sapphire Preferred, Sapphire Reserve or Ink Business Preferred, then you can combine your rewards in your other account, and then transfer them to airline and hotel partners. If these points and miles are redeemed for luxury hotel awards, expensive airline tickets in business or first class, then it’s possible to receive more than one cent in value per point.
Utilize the promotional financing offers. A 0% Intro APR on Purchases for 12 months and the 0% Intro APR on balance transfers for 12 months as of September 14th 2017 are generous in the business credit card space. Just be sure to pay off your balance before your account anniversary to avoid interest charges.

Secure way for business owners to get the funds they need

Business credit cards offer a quick and secure way for business owners to get the funds they need to run their business smoothly, take advantage of growth opportunities, provide breathing room when business is slow, safeguard personal finances from actions of the business, and more.

We created this guide to set you on a path to make the most out of business credit cards. Here’s a taste of what’s inside:

The incredible advantages of business credit cards
How business credit cards affect both your business AND personal credit
How to find our your approval odds before you apply
The type of business card you should avoid
Hacks to earn rewards and flights from your business credit card
Download The Ultimate Business Credit Card Guide Now For Free.

Nav offers dozens of the top business credit cards, and the most small business financing options available in one place. Sign up for a free Nav account to see your approval odds on business financing options before you apply.

The Platinum Delta SkyMiles card from American Express is a great card for frequent Delta travelers who plan to make a large amount in purchases ($50,000+) on their card each calendar year. This card has a killer signup offer—Earn 35,000 bonus miles and 5,000 Medallion® Qualification Miles (MQMs) after you spend $1,000 in purchases on your new Card in your first 3 months. Earn a $100 statement credit after you make a Delta purchase with your new Card within your first 3 months. MQMs help you get closer to reaching Medallion status in the Delta SkyMiles program.

Added benefits:

Earn 2 Miles per dollar spent on purchases made directly with Delta. Earn 1 mile on every eligible dollar spent on purchases.
No foreign transaction fees.
Earn more miles with boost programs: 10,000 bonus miles and 10,000 MQMs after $25,000 in purchases each calendar year, as well as another bonus after $50,000.
Earn a domestic, round-trip companion pass each year you renew the card.
Added Delta bonuses: free checked bag, priority boarding, 20% savings (via a statement credit) on eligible purchases made in-flight.