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Running a business is hard. But the right business credit card can lend a helping hand, whether it’s an introductory 0% APR offer that can save you money, a generous rewards rate where you spend the most, or through other perks and benefits like car rental coverage, cell phone insurance, or expense integration with your accounting software.
A wide variety of business credit cards are available and new cards are launched regularly. If you’re considering a new business credit card, here’s some guidance on the business credit card trends to expect in 2023.
Recommended partner offers for business credit cards
Less emphasis on business travel rewards
The pandemic has decimated the business travel industry. And according to the GBTA Business Travel Index Outlook 2022, business travel spending will not fully recover until 2026.
If travel was a significant part of your company’s expenses, you probably have a travel rewards card. But if flights and in-person pitches have given way to Zoom meetings, it might be time to look for a card that offers benefits that you can use now.
We expect cards to focus less on corporate travel benefits and more on rewarding day-to-day expenses. One option may be a card such as the Ink Business Preferred® Credit Card, which earns 3 points per dollar on the first $150,000 spent on travel and select business categories each account anniversary year and 1 point per dollar on all other purchases and has an annual fee of $95. There are no fees for additional employee cards, and the flexible earning structure means you can use the card for travel as your business needs change.
More options for debt relief or debt prevention
As the Federal Reserve has raised interest rates and credit card APRs have followed suit, there will likely be an increase in business owners looking to take advantage of a 0% APR offer to pay off existing debt faster or get a longer time frame to get a loan. to pay off the loan. big purchase.
We expect to see more small business cards with 0% introductory offers to attract new customers. One card currently offering a solid intro 0% APR is the US Bank Business Triple Cash Rewards World Elite Mastercard®*. The card has a $0 annual fee and comes with a 0% introductory APR on purchases and balance transfers for 15 billing cycles, followed by a regular variable APR of 17.74% – 26.74%. There is a 3% balance transfer fee with a $5 minimum.
BNPL vs small business cards
Buy now, pay later has become extremely popular in recent years, due to their appeal to people who fear credit card debt and find prepayment terms attractive. We expect BNPL plans to take a bite out of the small business card market, which could result in business credit cards having to soften their welcome offers to attract new customers.
A card to consider with a strong welcome bonus is the Capital One Spark Cash Plus* which comes with a $500 welcome bonus after spending $5,000 in the first 3 months, plus an additional $500 if $50,000 is spent in the first 6 months and an ongoing rewards rate of unlimited 2% cashback on any purchase and 5% cashback on hotels and rental cars booked through Capital One Travel.
As a charge card, you also don’t have the option of carrying a balance with you, making this card an ideal option for those who might shy away from a traditional credit card and can afford to pay the balance in full and on time every month. to pay .
It boils down
Business credit cards are subject to the same market forces as any other financial product. Due to rising interest rates and changing consumer patterns in 2023, business credit card issuers will adapt their products and create new card offerings to meet the current needs of small business owners.
If you’re looking for a new business credit card, you should carefully consider the options and choose the one that’s best suited for your unique business needs.