If the economy is struggling or the pace of payments is slow, Many contractors resort to best credit card for construction business to help them manage their costs. However, certain credit cards may meet the requirements that the building industry requires better than others. The best part is that we’ve conducted the necessary research for you, bringing together the top contractor credit card in a short article.
The credit challenges for contractors
Let’s face it: Payment problems in the construction sector are that contractors often have to put their expenses on hold as they wait for payment. Between slow-paying general contractors and owners’ schedule delays, other issues can arise, which can cause lots of pressure on contractors’ bank accounts to choose best credit card for construction business.
Sometimes, construction companies need assistance to make ends meet until the next payment is due. This is the nature of the construction industry. But remember: Credit cards aren’t the solution to cash flow issues. Using a best credit card for construction business to help keep your head above water while having accounts piling up could increase your expenses.
If used wisely, the best credit card for construction business can earn rewards and points that can boost their profits. Different cards offer various benefits; not every contractor has the exact requirements or desires. There’s no “best” card for everyone. We divided them into categories based on what you’re looking to get.
The 8 best Credit cards for construction business.
Below is a list of the best credit card for construction business ideal for contractors who need extra breathing space — or want some extra cash. There are benefits such as bonus cashback or sign-on offers and points you can redeem for reward points.
With caution, credit rates may fluctuate depending on your client’s credit history and other terms. We can only provide the time frame your rate will be within if your application is accepted. While credit cards can offer an interim amount of space during times of slow payments, however, you should pay the balance off each month to avoid the cost of interest in any way.
The best credit card to cover unexpected costs
American Express Blue Business Cash Card
Benefits:
- Annual fee: $0
- APR introductory 0% on the purchase of 12 consecutive months
- Variable 13.24 percent to 19.24 percent rate following the initial period
- 2.2% cash back on eligible purchases of up to $50,000 per year and 1% after that.
- Flexible purchasing power
Contractors must be flexible, which is why this American Express Blue Business Cash Card recognizes this. It is a best credit card for construction business. It comes with the AMEX Expanded Buying Power program that lets you use more significant than the credit limits to pay for large purchases whenever they occur. The amount you can spend above your credit limit is contingent upon your credit score, history of payments, financial resources, and other variables.
Additionally, you’ll receive cashback at 2% on eligible purchases up to the first $50,000 per year. You can use the cash back to pay off your bills — or even put the money back into your wallet.
The best credit card to get an easy cashback bonus
Capital One Spark Cash Card for Business
Benefits:
- The annual fee is $0 for the first year, then $95/per year for the following years.
- Cash bonus of $500 once you make purchases of $4,500 in the first three months.
- 20.99% APR
- Cashback up to 2% in cash.
- You can spend more than the limit.
For those who are contractors who have many expenses and cash flow to take care of them, you’ll profit from using the Capital One Spark Cash Card for small Business.It is a best credit card for construction business. The card lets you get unlimited cashback of 2 that you can use to offset the annual fee of $95. You may exceed your limit and still earn cash back without paying excess-limit charges.
The best Credit card for contractors that are addicted to traveling.
American Express Blue Business Plus Credit Card
Benefits:
- Annual fee: $0
- APR introductory 0% on the purchase of 12 consecutive months
- Variable 13.24% up to 19.24 APR after the initial period
- 2X Membership Rewards Points on the first $50,000 of annual assets, 1X after that.
- Flexible purchasing power
If you’d like to reap the rewards of hard-earned credit card purchases to earn points, consider the Blue Business Plus Credit Card from American Express.It is a best credit card for construction business. The card will earn you 2X points for the first $50,000 worth of purchases per year and then 1X after that. You’ll get the best value for your miles, which could be especially appealing for those who are likely to travel a lot.
Best credit card to cover business expenses for travel
Capital One Spark Miles for Business
Benefits:
- The annual cost is $0 for the first year and $95/per year after that.
- A one-time reward of 50,000 miles following spending $4,500 in the first three months
- 20.99% APR
- Earn 5X points at rentals and hotels
- 100 credits towards the Global Entry program or TSA Precheck
Contractors and construction travel experts can benefit from the Capital One Spark Miles for Business.
This card allows you to earn 5x the points you earn on rentals and hotels and will enable you to put the entire crew in a project-local hotel and build up your points bank that you can redeem quickly. It is a best credit card for construction business. In addition, you can get the TSA Precheck credit certainly sweetens the deal.
The best business credit card for those who want cashback
Chase Ink Business Cash Credit Card
Benefits:
- Annual fee The annual fee is $0
- APR of 0% for introductory purchases in up to 12 months
- Variable 13.24% up to 19.24 APR in % following the initial period
- Cashback of $750 after spending $7,500 during the first three months
- Cashback of 5% on the first $25,000 of each year on office equipment, Internet, cable, and phone service
- Cashback of 2% for the first $25,000 of each year in restaurants and at gas stations,
- 1.1% cash back for all purchases
If your company is known to be more efficient and has fewer expenses and fewer expenses, then this Ink Business Cash Credit Card might be the right card that is right for you. It is a best credit card for construction business. It provides 5% cash back for everyday purchases such as office equipment and business internet and telephone services. The company also includes a cashback of 2% at restaurants and gas stations and allows you to earn some extra cash when you fill up your tank or take your client to a restaurant for dinner.
The best credit card to purchase tools and other materials
Lowe’s Business Rewards Card issued by American Express
Benefits:
- Annual fee The annual fee is $0
- APR 0% at the beginning of the six months
- Variable 15.74 percent to 24.74 APR after the initial period
- Discount of 5% from Lowe’s for all purchase
- 3X Points in offices, restaurants as well as wireless telephone services
- 2X Points at Lowe’s
- 1X Points on any other purchase
- You can redeem points for Lowe’s as well as AMEX gift cards
- Cashback of $100 once per year, subject to approval
- Access to Lowe’s ProServices
If you’re a fan of the large-box home centers, it’s not a matter of denying the huge benefits you can enjoy from this Lowe’s Corporate Rewards Card offered by American Express. It is a best credit card for construction business. There’s no annual fee and a 5 percent discount on purchasing lumber, tools, or every other purchase you make at Lowe’s. Additionally, you’ll earn five points on food, office supplies, or wireless-based services- all of which you’re already paying for.
If 5% off purchases and points redeemable weren’t sufficient, then you’ll have the benefit of Lowe’s ProServices. You’ll be eligible to receive discounted delivery, bulk rate pricing, and Lowe’s Business Replenishment program.
The best Credit card to use for professionals that require flexibility
The Plum Card is a product of American Express.
Benefits:
- Fee for the year: $0 the first year, $250/year after that.
- $500 cashback when you spend $15,000 in the first three months
- Unlimited 1.5 percent cashback on all payments that are received within ten days after the due date
- Flexible payment terms
Suppose you’re considering getting an AMEX card but are concerned that you’ll have to carry a debt now and in the future, make sure to look at your options with the Plum Card. It is a best credit card for construction business. This card allows you to have up to 60 day period to settle the balance without incurring interest. It also gives 1.5 percent cashback for payments made in the first ten days after due dates, and there’s a deal that offers 500 cash back when you purchase $15,000 in three months.
The best Credit card to help contractors who need advertising
Chase Ink Business Preferred Credit Card
Benefits:
- Annual cost annual fee of $95
- 15.99% to 20.99% APR
- Bonus points of 100,000 points when you invest $15,000 during the first three months
- 3X points on the one-time $150,000 spent on shipping, travel to the Internet, cable telephone service, or advertisements on social media sites or search engines.
- Unlimited 1X point points for other purchases
Being successful in the construction business is a challenge, and a lot of businesses depend on advertising to make their name known in the marketplace. It is a best credit card for construction business. The Chase Ink Business Preferred Credit card offers 3X points for the first $150,000 on advertising when you use an online social media platform and search engine. In addition, you’ll earn 5X points on shipping purchases and Internet, cable, and phone services, as well as unlimited 1X points for all other purchases.
What Are construction Credit Cards Used For?
Most construction firms use best credit card for construction business to have thirty to forty days in which to “float” their payments.
Credit cards Contractors:
- Purchase materials
- Save receipts
- Send the receipts together and an invoice for customers; after that,
- Pay off the card at the time they are paid
The way it is done:
You spend $750 on wood and other items at Lowes. If you pay the balance off before the expiration time of grace, you’ll pay no interest rate for acquiring these products.
The card you’re using for your float could vary between 30 and 60 days.
Factors to Consider in Choosing a best Credit Card for Construction business
Whatever industry you are in, established and new companies are usually assessed for business best credit card for construction business based on the owner’s credit score. Before deciding which business credit card would be the best fit for your construction company, look at your credit score. Except for security-based business credit cards, every credit card requires an upper credit limit to be eligible or apply.It is a best credit card for construction business. When you’ve figured out your score, you’ll be able to narrow your search to those cards that you’re sure are a good chance of being able to secure.
Also, look at your financial statements to see where and how you spend the most. Picking the best credit card for construction business your company heavily depends on the kind and amount of transactions you’re making and the ability to cover what you’re spending month after month.
For example, if you need more time to finish the cost of a large purchase, look for a card that offers an interest-free grace period. If you’re aware that you are spending in certain areas higher than others, consider the credit card that has an incentive program that is tied, so you maximize the potential for earning.
Remember that although business best credit card for construction business can be powerful financial instruments, you shouldn’t use them to cover the entirety of the business’s expenses. Utilizing a business best credit card for construction business to pay for expenses that you aren’t able to pay immediately, such as a vehicle for the company or a large piece of equipment, maybe a case of carrying debt from every month until you’re able to pay the balance off, which could raise your interest rates. If you don’t pay your charges on time or if you use up all the credit limit on your card, it could ruin your score on credit.
Look at your projected and current costs, and then consider the amount you can pay promptly. It is a best credit card for construction business. You may need to look for a business loan to build for large purchases, whereas you look into business credit cards to cover smaller costs.
How to Find the Best Credit Card for Construction Business
Once you have decided on the kind of best credit card for construction business you’ll need and will be able to afford to use every month–you can select which options offer the flexibility and financial support that you need to operate the construction industry.
Credit cards with extended interest-free introductory terms are a great option when you’re planning the purchase of a large amount. If you’re looking for best credit card for construction business everyday expenses and want to earn cash back rewards is an excellent method to get the most from your money. Companies with several team members may want to consider pre-paid cards with controls for employees. Business owners with weak credit may start with a secured credit card with a lower minimum credit score, which will help them pay for small expenditures as they build up their credit.
It’s important to remember that the credit card you select to run your company will affect your credit score for the better if you utilize your card responsibly and in the negative should you not. So don’t confuse your credit card’s access and the capacity to pay it back. Find out the minimum specifications for commercial credit cards before deciding whether or not to apply.
Ultimately, the key is to use your knowledge of your construction company to decide which product is best for you. Additional cash for essential expenses could make your life simpler and more enjoyable, or you may want to get a credit card that comes with as few expenses upfront as possible. Knowing your finances and business requirements will help you choose the right credit card to suit your needs.
Alternatives of credit cards available to contractors
If you’re not a fan of getting credit cards to increase your cash flow, There are other options to consider.
Line of credit
Suppose you enjoy the flexibility credit cards offer but prefer a lower interest rate. You might want to talk with your bank about an account line. The term “line of credit” refers to a set amount of funds the lender is willing to let you draw on as needed. You can draw it and then pay it back as often as you need. The most significant benefit is that you earn interest only on what you pull instead of the total amount for the entire line.
Bank credit
If you need more time to pay or the possibility of a larger loan, talking with your bank about the traditional business loan may be worth a try. The advantage of a bank loan is that they typically offer lower interest rates than a credit card. The drawback is that you may need to secure collateral, like your commercial or home, to obtain the loan.
SBA-guaranteed loans
Guaranteed loans from the SBA are an alternative for small-scale companies. The Small Business Administration offers SBA-guaranteed loans backs these loans via local lenders, allowing banks to offer higher interest rates. SBA loans need a lot of paperwork, and you could wait for approval for some time. However, it’s a great low-cost alternative when other options do not work out.
A credit card is not the best option for contractors.
The bottom line is that using best credit card for construction business can be an effective business move for contractors, provided they utilize it properly. When you put regular tools, equipment, business, or expenses onto a credit card, you can earn cashback or other rewards that could improve your bottom line.
The truth is credit cards don’t provide a solution for a company’s cash-flow issues. They’re only a patch. If your company is continually in cash shortage because you’re struggling to collect your accounts, raising an account balance on a credit card will only cause more problems.
Final Thoughts
On a larger scale, managing the construction industry is a challenge at best.
Between getting the money on time, keeping an inventory of materials, and locating a good-quality worker, the one thing you don’t want in your life is complicated.
So, you can adhere to one of the credit cards we’ve suggested to maximize the value of your business purchases or to help make it easier for you to run your company.
In terms of rewards and benefits, there’s no better choice than this card. Amex Business Platinum card, with tremendous rewards, a wealth of benefits, and a no-preset spending limit. There are many best Credit Card for Construction Business.
Other options worth considering are the CapOne Spark Miles card, Ink Business Unlimited card, CapOne Spark Cash Plus card, and the Amex Blue Business Plus card.
Finally, it is worth noting that The Amex Plum card permits users to use the time to settle their charges without charges, which is an incredible benefit for companies who are struggling with cash flow.
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