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Review: Capital One Business Credit Card Options
August 02, 2019
Capital-One

Review: Capital One Business Credit Card Options

August 02, 2019
When evaluating business credit cards, the key is to match the card with your business needs. Regardless of how good the rewards are on a card, if those rewards only apply to a certain purchase that you don’t frequently make, that card isn’t a good fit for you. One way to determine if a card is a good fit is to evaluate business credit cards based on their perks, fees, and qualifications.

Once that’s done, it’s a simple matter of analyzing your spending habits and determining what’s available so you can apply for the card that will provide maximum value. To get started, let’s examine the business credit cards offered by Capital One.

In this post, we’ll break down five Capital One business credit cards that tend to make a good fit for small business owners. Then, we’ll review other Capital One financing options, in case you determine that a credit card isn’t the right funding avenue for your business.

Which Capital One Business Credit Cards is Right for You?

1. Capital One Spark Cash for Business

If there’s one thing to note about the Spark Cash for Business card, it’s that it provides immense flexibility. Most notably, with this card, there’s no categories to limit your purchasing (so you get cash back on everything). In addition, the Spark Cash for Business Card comes with:

  • Unlimited two percent cash back.
  • One-time $500 cash bonus after you spend $4,500 on purchases within 3 months of opening the account.
  • No annual fee for the first year.
  • Redeem cashback in any amount.
  • Rewards that never expire as long as the account is open.
  • Ability to add employee cards at no cost.

Fees:

The Spark Cash card carries a $95 annual fee after the first year of opening the account.

Qualifications:

Applicants must have excellent credit to qualify for this card. According to the Capital One website, “excellent credit” means you’ve never declared bankruptcy, defaulted on a loan, been more than two months late on a bill or loan, and you’ve had a loan or credit card with a limit above $5,000 for three years or more.

2. Capital One Spark Cash Select for Business

The main difference between the Spark Cash Select Card and the Spark Cash Card is that the Select offers a slightly lesser rate on cash back rewards at 1.5 percent. However, with the Select, there’s no annual fee. In addition, you’ll get a 9-month zero APR period, and your APR is usually slightly lower. Other perks that come with the Spark Cash Select Card include:

  • No categories to limit your purchasing.
  • Unlimited 1.5 percent cash back.
  • One-time $200 cash bonus after you spend $3,000 on purchases within 3 months of opening the account.
  • Rewards never expires as long as the account is open.
  • Ability to add employee cards at no cost.
  • 0 percent APR for a 9-month introductory period.

Fees:

The Spark Select carries no annual fee.

Qualifications:

The Spark Cash Select Business card requires an excellent credit rating.

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3. Capital One Spark Classic for Business

The Spark Classic is a bare-bones business credit card that’s very accessible for small business owners of all types and credit histories. If your credit history is less than perfect, and you’re struggling to find a card you qualify for, this may be the one. Perks include:

  • No annual fee.
  • This is a cash back card, so you’ll get one percent cash back on every purchase.
  • Fraud coverage for lost or stolen cards.
  • No foreign transaction fees.

Fees:

The Spark Classic carries no annual fee.

Qualifications:

Applicants must have average credit. According to the Capital One website, “average credit” means you either defaulted on a loan in the past five years or have a limited credit history (less than three years).

4. Capital One Spark Miles for Business

For the small business owner that travels frequently, there’s the Capital One Spark Miles for Business. Perks include:

  • Two miles earned for each dollar spent on purchases.
  • One-time sign up bonus of 50,000 miles after spending $4500 within three months of account opening.
  • Miles never expire as long as the account is open.
  • No fee for the first year.
  • No limit to the number of miles earned.

Fees:

The Spark Miles card carries a $95 annual fee after the first year.

Qualifications:

The Spark Miles for Business card requires an excellent credit rating.

5. Capital One Spark Miles Select for Business

The main difference between the Spark Miles Select and the Spark Miles is that the Select offers a slightly lesser rate on miles at 1.5 miles earned for every dollar versus 2 miles per dollar. However, with the Select, there’s no annual fee and you get a 9-month zero APR period. The perks break down as follows:

  • 5 miles earned for each dollar spent on purchases.
  • Earn a one-time 2,000-mile bonus once you spend $3000 within three months of account opening.
  • Miles never expire as long as the account is open.
  • No annual fee.
  • No limit to the number of miles earned.
  • 0 percent APR for a 9-month introductory period.

Fees:

The Spark Miles card carries no annual fee.

Qualifications:

The Spark Miles Select for Business card requires an excellent credit rating. If you have a poor credit score, it might be better if you pursue another card.

What all Spark Business Credit Cards Come With:

Regardless of the Capital One Business Credit Card you choose from this list, you’ll receive a year-end summary, detailing your spending, budget, and tax-related information. You’ll also have access to Capital One’s accounting capabilities, which include numerous formats such as Quicken, QuickBooks, and Excel.

Other Capital One Business Financing Options:

In addition to their business credit cards, Capital One also offers other types of funding.

  • Business Installment Loans: The Capital One Small Business Loan starts at 10,000 and has terms up to five years. This loan option can be used for business expenses, such as expansion projects or consolidating debt.
  • Working Capital Lines of Credit: If your business wants to improve cash flow, Capital One’s line of credit product might be a viable option. The terms vary, and line amounts start at $10,000.
  • SBA Loans: Through Capital One, you can apply for a few different types of SBA financing. They offer the SBA 504 Loan, SBA 7(a) Loan, and the SBA Express program.
  • Equipment and Vehicle Loans: If your business requires equipment or vehicles to operate, Capital One offers financing specifically for these types of purchases. Loan amounts start at 10,000 and terms go up to five years.

Conclusion: Consider the Capital One Business Credit Card Options

Before pursuing any business banking options, you should carefully read the terms and conditions. For instance, all the Capital One business credit cards mentioned carry fees for cash advances and late payments. If you plan on using a cash advance, you can expect to pay the greater of $10 or three percent of the amount of each cash advance. Further, a late payment will cost you up to $39 in late fees.

Ideally, you won’t have to pay either of these fees. In fact, to make any of these credit cards work to your advantage, you should avoid any extra costs like interest or fees. Make payments on time and in full and choose the card that provides the best rewards for what you spend money on. By doing that, you’ll get the biggest bang for your buck when it comes to business credit cards.

Editor’s Note: This post was updated for accuracy and comprehensiveness in August 2019.

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Post by: Fora Financial
Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].