Starting a new business can be challenging, especially when the company has no revenue. Many startups need money to purchase equipment, pay for software, manage advertising, and cover other business expenses.
Business credit cards can help startup owners manage these expenses and build a financial foundation. However, getting approved without business revenue can be difficult because many banks consider income, credit history, and financial stability before approving applications.
Fortunately, some business credit cards are suitable for startups with no revenue. These cards may consider personal credit scores, available cash, business funding, and other financial information.
1. Chase Ink Business Unlimited Credit Card
The Chase Ink Business Unlimited Credit Card is a popular option for startup owners who want simple cash-back rewards.
It offers unlimited cash back on eligible business purchases and has no annual fee.
New business owners may qualify even if their company has not generated revenue yet. However, approval generally depends on personal credit history, income, and other financial factors.
This card is useful for purchasing office supplies, equipment, software, and other business essentials.
2. Capital One Spark Classic
Capital One Spark Classic is designed for business owners who want a straightforward credit card with cash-back rewards.
It offers unlimited 1% cash back on eligible purchases and has no annual fee.
This card may be suitable for startups with limited business credit history. Applicants should still expect the issuer to evaluate their personal credit and financial information.
It can help business owners manage expenses while establishing a positive payment history.
3. Ramp Corporate Card
Ramp is a corporate card solution designed for businesses that want to manage expenses without relying primarily on the owner’s personal credit score.
It evaluates business financial information, including cash balances and other financial factors.
Startups with sufficient cash reserves or funding may qualify even when they have not generated revenue.
Ramp also provides employee cards, spending controls, expense tracking, and accounting integrations.
However, eligibility requirements apply, and businesses generally need to meet its registration and financial requirements.
4. Brex Corporate Card
Brex is another option for startups that have no revenue but have received funding.
It focuses on the company’s financial strength, available cash, and funding rather than relying exclusively on personal credit.
The card offers business spending tools, employee cards, rewards, and expense management features.
It may be particularly useful for venture-backed startups and companies with sufficient financial resources.
However, businesses without revenue or funding may find approval difficult.
5. Bank of America Secured Business Credit Card
A secured business credit card can be a useful option for startups that cannot qualify for traditional business credit cards.
The Bank of America Business Advantage Unlimited Cash Rewards Secured Credit Card requires a security deposit.
The deposit determines the available credit limit, subject to the issuer’s terms.
This card offers cash-back rewards and can help eligible business owners establish a positive credit history.
It may be suitable for startups with limited credit history that want to begin building business credit responsibly.
Benefits of Business Credit Cards for Startups
Business credit cards provide several advantages to companies that have not yet generated revenue.
- Manage startup expenses: Pay for equipment, software, supplies, and other business purchases.
- Build credit history: Responsible payments may help establish business credit.
- Separate finances: Keep personal and business expenses organized.
- Earn rewards: Receive cash back or points on eligible purchases.
- Improve expense tracking: Monitor transactions and manage business spending.
How to Get a Business Credit Card with No Revenue
Startup owners should prepare their financial information before applying.
Maintaining a strong personal credit score can improve approval chances. Banks may also consider personal income, available savings, business funding, and existing debt.
Opening a business bank account and registering the company can help establish its financial identity.
Applicants should provide accurate information about business revenue. If the company has not earned anything, reporting zero revenue is generally appropriate.
It is also important to compare annual fees, interest rates, credit limits, and personal guarantee requirements before choosing a card.
Conclusion
Finding the best business credit card for a startup with no revenue depends on the company’s financial situation and the owner’s credit history.
Chase Ink Business Unlimited and Capital One Spark Classic are worth considering for founders with strong personal credit. Ramp and Brex may be suitable for startups with funding and sufficient business cash reserves. A secured business credit card can also help founders who have limited credit history.
By choosing the right card and making payments on time, startup owners can manage expenses, establish credit, and prepare their businesses for future growth.
Note: These cards are primarily designed for U.S. businesses. Eligibility, rewards, fees, and approval requirements vary by issuer.