No annual fee business cards: What to consider

A no annual fee business credit card allows business owners to enjoy the advantages of business credit cards—like travel rewards, cash back or an accounts payable feature—without paying a yearly fee.

Keep reading to help determine whether a no annual fee business credit card is right for your business.

What you’ll learn:

• No annual fee credit cards give business owners complimentary access to rewards and benefits.
• Potential business cardholders can review card benefits to determine whether paying an annual fee is worth the cost, based on their business spending.
• Capital One offers a range of business credit cards for various types of spending, with a full spectrum of  potential rewards, with some cards offering no yearly fee.  

No annual fee business credit cards are exactly what they sound like: cards for business expenses that don’t charge a yearly fee. Traditionally, business credit cards offer benefits like miles or rewards. For small-business owners, no annual fee cards represent an opportunity to enjoy the benefits and rewards a business card may offer.

At the same time, it’s critical to remember that if you carry a balance on your business credit card, you may still be charged interest on purchases or other fees, such as those for balance transfers or late payments. 

Business credit cards may have annual fees for any of the following reasons:

• More perks and rewards: Issuers may require an annual fee for credit cards with elevated benefits such as higher cash back rewards or additional perks for growing businesses.
• Riskier borrowers: Borrowers newer to credit, such as new businesses, may need to pay an annual fee to open a business credit card.
• Larger sign-up bonuses: Some business credit cards with annual fees offer higher sign-up bonuses, often contingent on how much you spend within a certain time frame.

When comparing business credit cards, consider what additional benefits annual fee cards could offer your organization. 

Here are some potential advantages of opting for a no annual fee business credit card:

• Savings opportunity: Cards with no annual fee could reduce how much you’re spending to access business credit, especially if you’re currently using employee cards that each have their own maintenance fee.
• Access to rewards: Many no annual fee business credit cards still offer the opportunity to earn rewards, such as Capital One’s Spark Cash Select that offers 1.5% unlimited cash back.
• Business-friendly features: Some no annual fee business cards also offer additional perks to support business growth such as detailed spending insights or no foreign transaction fees during business travel.

Capital One offers a variety of no annual fee business cards with features and benefits to fit your business’s needs.

• The Spark 1.5X Miles Select card lets you earn 1.5X miles on every purchase you make for your business. You will also receive a one-time 50,000-mile bonus after spending $4,500 on purchases within the first three months of opening the account.
• The Spark 1.5% Cash Select credit card offers a range of options depending on your credit score. For example, the Spark 1.5% Cash Select earns you unlimited 1.5% cash back on every purchase and a $500 cash bonus when you spend $4,500 in the first three months.
• If you’re establishing or rebuilding your credit, Spark 1% Classic offers no annual fee so you can focus on building your business credit while earning unlimited 1% cash back on every purchase—with no minimums or expiration dates.

Annual fees are only one factor  to consider when deciding which credit card is right for your business. Sometimes you can earn better rewards and take advantage of higher spending limits if you choose a card with an annual fee.

Generally, a no annual fee card may be a good choice for small businesses with fluctuating cash flow. These cards provide the financial flexibility a small business needs and allow business owners to earn rewards without the pressure of an annual charge.

Ready to get started? Whatever your business’s financial situation,you can compare business credit cards from Capital One to find the features and benefits that meet your business needs.