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What are the Best Unsecured Business Credit Cards for Startups?

By Joe

business credit cards for startups

New business owners often fund their ventures with personal capital, which includes savings, loans, and credit cards. Without established business credit, companies sometimes have a hard time finding business credit cards they can qualify for. I’m often asked about the best business credit cards for startups, so I wanted to do a write-up to share with everyone. 

Here’s what’s covered: 

  • Startup Business Credit Basics
    • Secured vs Unsecured Credit Cards
    • Corporate vs Travel Rewards vs Cashback Card
    • What is the 5/24 Rule?
  • Best Corporate Credit Cards for Startups
  • Best Travel Rewards Credit Cards for Startups
  • Best Cashback Credit Cards for Startups
  • Final Thoughts

Keep reading to learn everything you need to know. 

Startup Business Credit Basics 

A business has its own credit scores, different from FICO scores. Before a business can qualify for a credit card, it must build business credit, which is separate from personal credit. A company must form their business in a way that sets them up to become “business credit ready,” network with banks, establish business credit profiles, then build small tradelines of credit. When they make the right moves, they can generate high credit scores and qualify for large lines of credit. 

Companies without business credit can get credit cards, but are often limited by personal credit. 

Secured vs Unsecured Credit Cards

There are several categories of credit cards available for businesses and individuals: secured and unsecured. Secured credit cards are designed for companies and people who want to build or repair credit by reporting responsible payment history. Unfortunately, secured credit cards require a deposit, essentially allowing you to spend your own money in exchange for reporting on-time payments to credit bureaus. 

On the other hand, unsecured credit cards extend deposit-free lines of credit to companies and individuals based on existing merit. Unsecured cards are typically available to those with moderate to excellent credit history. The higher the credit score, the more card benefits and higher limits a business or person can usually qualify for. Here, we’re going to talk only about unsecured credit cards for startups. 

Corporate vs Travel Rewards vs Cashback Card

Companies usually turn to credit cards to manage cash flow. Another top reason to use credit cards for business spending is to save and earn. Ideally, you want to pay off your card balance each month to avoid interest payments and cash in on the available discounts and rewards. 

  • Corporate cards help large companies manage employee spending and offer savings with high profile partners. 
  • Business travel cards are designed for companies that want to earn travel rewards like airline miles, free hotel stays, and more.
  • Business cashback cards provide rewards in the form of points that can be redeemed as cash to a bank account, applied toward a statement balance, or redeemed for other items. 

So, when you explore which card is right for you, first decide which you’re more interested in. Then, proceed through this list accordingly. 

What is the 5/24 Rule?

One last item to note before we move on to explore the cards listed here is Chase’s “5/24 rule.” All card issuers have provisions that, if not met, can immediately disqualify you from the ability to obtain a card. Chase has a black and white rule that if you have opened five or more personal credit cards within the past 24 months, you cannot open a new credit card account with them. 

So, if you want to apply for a Chase credit card, start with them before you move on to other banks. 

Best Corporate Credit Cards for Startups

Typically, corporate cards have lower risk to you as the business owner because they require no personal guarantee. But, they can be trickier to qualify for. Qualification terms are instead based on a company’s financial track record and proven ability to pay back funds. Right now, there are some impressive names in the corporate card game; here are the four top corporate cards for startups, none of which charge fees. 

1. Brex 

brex card

Read more about the Brex corporate card. 

2. Stripe 

stripe corporate card

Read more about the free Stripe Corporate Card’s cashback rewards. 

3. Divvy

divvy card

Read an in-depth Divvy credit card review before you apply.

4. Ramp

ramp card

Learn more about the Ramp card. 

Best Travel Rewards Credit Cards for Startups

Now, let’s take a look at the best startup business credit cards for the best travel rewards and sign on bonuses that I know of. 

1. Amex Marriott Bonvoy Businesses

marriott bonvoy business card

Read a Marriott Bonvoy Business credit card review and comparison.

2. Barclay American Airlines AAdvantage Aviator Business

Barclay AAdvantage Business Card

Learn more about Barclay’s AA Biz card. 

3. Bank of America Alaska Airlines Business

BoA Alaska Airlines Business card

Learn more about the BoA Alaska Biz card. 

4. CitiBusiness American Airlines AAdvantage Platinum 

CitiBusiness Alaska Airlines Advantage card

Learn more about the CityBiz AA Platinum card.

Best Cashback Credit Cards for Startups 

Now, these cards can help you manage cash flow while you earn as much as possible on spending for your startup.

1. Capital One Spark Cash Small Business

Capital One Spark cash business

Learn more about the Capital One Spark Cash card.

2. Chase Ink Business Preferred

Chase Ink Business Preferred Card

Read a deep dive into the Chase Ink Business Preferred card.

3. US Bank Business Leverage 

US Bank Business Leverage

Learn more about the US Bank Biz Cash card. 

4. Wells Fargo Business Platinum

Wells Fargo Business platinum card

Read more about Wells Fargo business lines of credit before you apply. 

Final Thoughts

These are the top business credit cards for startups, including corporate, travel rewards, and cashback options. We’ve written in-depth reviews on a handful of additional business credit cards you might also find interesting: 

  • PNC Bank Business Credit Card Review & Comparison
  • We Studied Suntrust Business Credit Cards & Here’s What We Found
  • How to Get a Business Credit Card — The Ultimate Guide

And, if you’re ready to learn how to get $100K in business credit in 30 days, join Business Credit Workshop today! 

How to Start a Trucking Company From Start to Finish

By Joe

How to Start a Trucking Company

Launch a Trucking Company, Even When You Have No Money

A trucking company is a lucrative venture that requires a substantial amount of startup funding. And, while many people would like to get into it, they have no idea where to start — especially when they have no money to launch.

Here, you’ll learn everything you need to start a trucking company, even when your initial resources are limited. 

  • Projected startup costs based on the number of trucks
  • A step-by-step action plan for getting off the ground
  • How to raise funding when starting from ground zero

Now, let’s look at what it takes and you can decide if you still want to start a trucking company (It’s not for the faint of heart, but you can learn how to maximize your resources). 

How Much Does it Cost to Start a Trucking Company? 

Depending on the number of trucks you want on the road, where you plan for them to drive, and the other personalized details of your business, it can cost a minimum of $27,357 to $406,979 to launch a trucking company.  

How Much Does it Cost to Start a Trucking Company
*An LLC is probably a more cautious business structure choice for a trucking company but is more expensive. For the purpose of showing minimum costs, I’ve included a typical sole proprietorship cost. 
**Single BOC-3 filing cost is minimum for an intrastate operation. 
***Fuel tax cost based on 12,000 miles per truck, the average long-haul truck fuel economy of 5.5 miles per gallon,  at the national average IFTA tax of $0.5538 per gallon (PFS). 
****Based on the average US diesel price of $2.956 (EIA), the average long-haul truck fuel economy of 5.5 miles per gallon (ICCT), and 12,000 miles of driving.
*****Based on average US annual truck driver salary of $46,380 (BLS). 

Of course, these costs can vary wildly based on many different factors. So, you’ll need a budget and a plan. Hopefully, that’s where I can help. Step-by-step, I’ve outlined how to start a small trucking company, even if you have no money to put down. 

Before We Start, Let’s Get an Overview of Your Plan

You’ll need to ask yourself a few crucial questions before you get started. Don’t worry, though. They’re easy to answer and you can always change your mind later as your company grows. 

Where will you base your operations and where will you haul? 

Your base location and the states you will drive through are crucial to know before you launch. If you will never leave your state, you can get by without some of the licensing and costs associated with hauling across state lines. 

For example, with interstate freight, hauling across state lines, you will need motor carrier authority or an MC number, which we’ll cover later. And, for intrastate freight, hauling only within your base state, there are typically fewer requirements. 

So, if your operations are isolated to your home state, you can skip over the MC number section for now. You can acquire authority later if you choose to expand your operations. 

Will you drive for your company? 

If you plan to drive for your trucking company you will need more licensing. For a one-truck operation, driving could save you on the cost of an employee salary or payment to a contractor. However, you will need a commercial driver’s license (CDL), which takes some work.

While a trucking company owner is not required to maintain a CDL, each driver is. This type of license can be acquired through your state DMV, and each of your drivers is required to keep a valid, updated CDL at all times. 

Will you hire or contract your drivers?

While there is no rule to how you set up your operations, you need to consider whether you would rather hire employees or work with contractors. Either way, one of the most difficult parts of your job, when you try to scale your business, will be to build and maintain relationships with drivers who are qualified. 

Look for drivers with the following qualities: 

  • Licensed 
  • Punctual
  • Good temperament
  • Careful with equipment

The paperwork associated with contractors will typically come with less hassle than employees. Yet, the potential to provide benefits to employees can sometimes nurture ongoing and profitable relationships. 

Now, let’s look at the steps you need to take to start a trucking company. 

Step 1: Acquire a Business License

The first step to take is to acquire your business license. And, you will have options. 

In the US, there are four types of business structures/entities to choose from. 

  1. Sole proprietorship – an unincorporated business owned by one person who has sole rights to business profits and liabilities. 
  2. Partnership – an unincorporated business owned by two or more people who share equal rights and responsibilities to business profits and liabilities. 
  3. Limited Liability Company (LLC) – a business that includes elements of a sole proprietorship, partnership, and corporation in which the owners are not personally liable for the company’s debts or liabilities. 
  4. Corporation – a business that is legally separate and distinct from its owners who act as representatives for the company. A corporation’s owners are not personally liable for the company’s debts or liabilities. 

I usually suggest that trucking companies go with an LLC because it gives business owners many of the same protections of a corporation with the ease of a sole proprietorship or partnership. You may be able to have your licensing fees paid by leveraging an economic development grant. 

To acquire business licensing, go to your state’s Secretary of State website for more information.

Resources: 

  • SMB’s Directory of Secretary of State Offices and Websites
  • SBA’s Business Grant Documentation

Step 2: Get Your Commercial Driver’s License (CDL)

If you will be driving, you will need to obtain a CDL, which is a required license for anyone driving commercial vehicles like tractor-trailers, semi-trucks, dump trucks, and passenger buses. 

To obtain a CDL requires education, exams, and fees. There are some states that will allow you to obtain a CDL without schooling, but you will still need to pass an exam.

The courses offered are often 5-7 days and sometimes 60-90 days. The longer courses can cost upwards of $1,200, but you can get these courses paid for in a couple of different ways. 

  1. Apply for an education grant through the federal government.
  2. Get a trucking company to train you in exchange for a contract to work for them for a certain number of months at a low compensation.

So, be sure to check into the financial aid programs offered by your local community college and trucking companies in your state to obtain a CDL. 

Resources: 

  • Trucker Country’s State Directory of Truck Driving Schools
  • Free Application for Federal Student Aid

Step 3: Apply for an Employer Identification Number (EIN)

After your business is licensed, you’ll need to apply for an Employee Identification Number (EIN). An EIN is a free, nine-digit federal identification number assigned by the IRS for business taxes and reporting. 

Your EIN will be used to file taxes, report business income and expenses, and apply for and establish credit on behalf of your company.

Resource: IRS Free Online EIN Application 

Step 4: Sign Up for a DUNS™ Number

A DUNS™ or D&B number is a free, nine-digit business identification number assigned by Dun & Bradstreet’s business credit reporting agency to establish your company’s credit profile.

Your DUNS™ number will be used to apply for and establish credit on behalf of your company.  

Resources: 

  • Everything You Need to Know About a DUNS™ Number
  • D&B Free Online DUNS™ Sign Up  

Step 5: Hack Your Business Credit Profile

Funded businesses achieve 2X more employment growth and 30% more revenue growth than businesses that do not have adequate capital at launch, according to Kauffman. When you learn how to hack your business credit profile, you can obtain up to $100K in funding in as quickly as a month. 

Brendan Purnell, A2B Trucking LLC

Personal credit is limited and cash flow is a gamble. Make sure you have adequate capital because, in the blink of an eye, you can go belly-up if you are under-capitalized.

Brendan Purnell, Founder of A2B Trucking
678.224.9434

Brendan Purnell, the owner of A2B Trucking in Snellville, Georgia, was able to obtain over $200K in business credit over the course of six months. The financing he obtained substantially impacted the vitality of his company. 

He’s now operating a business with 10 trucks and a team of 12, including 10 contracted drivers, Purnell’s fiance doing administrative work, and himself. And, A2B is in a position to let others lease into the trucking company for a period of months to learn the ropes. 

A strong credit profile isn’t the same thing as bad debt. And, if you’re serious about building a successful company, more capital can help you achieve your goals. 

Resources: 

  • Business Credit Workshop
  • How a Trucking Company in Georgia Obtained Over $200K in Business Credit

Step 6: Obtain Your Equipment 

Once business credit is established, you can start truck shopping. Even if you aren’t in a position to qualify for a vehicle loan, there may be other ways to do so. 

For example, you may be able to purchase a used truck (very inexpensively) on eBay with a credit card. 

Buy a used semi truck on eBay

While it’s less likely that you’ll actually be able to drive something that costs nothing, you never know what you might find for free on Craigslist. 

Free semi truck on Craigslist

But, while these options are available, I wouldn’t necessarily recommend them. Your trucks should be a long-term investment. I’ve heard a rumor that there were hundreds of trucking companies that went under last year. So, it may be the perfect time to get a rig at liquidation prices. 

Once your business credit is established and you can look more closely at your resources, you’ll be able to make more informed and personalized decisions about how to buy fleet. 

Resource: 5 Tips for New Owner Operators Buying Your First Truck

Step 7: Acquire USDOT & MC Numbers

Next, you will need your USDOT and/or MC numbers issued. 

A USDOT or DOT number is a license number required for all commercial vehicles that weigh a certain amount, transport people or property, and operate between state lines. A DOT number is free. 

An MC number is a license that enables trucking companies to legally carry regulated commodities (anything that has been changed from its natural state) across state lines. An MC number is $300. If you need help paying for the license, an economic development grant may help cover the cost. 

Both licenses are issued by and can be obtained from the Federal Motor Carrier Safety Administration (FMCSA). 

Resource: FMCSA Registration Wizard

Step 8: Activate Your MC Authority

After registering with FMCSA for your DOT and MC numbers, you will need to activate your authority. This requires two parts

  1. Submit Proof of Liability Insurance – proof of commercial auto insurance coverage needed within 90-days of applying for MC authority. 
  2. BOC-3 Filing – designates processing agents to act on behalf of your processing company in each state in which you will operate. 

A processing agent is a person who can receive legal documents for your company in the case of a lawsuit. The cost for the BOC-3 filing starts at about $20. Depending on the agent, you may be able to bypass the cost. Ask your agent if their service has any type of fee waivers. 

Resource: FMCSA Process Agent Directory

Step 9: Get Cargo Insurance 

Cargo insurance provides coverage for freight. While you are not legally required to maintain cargo insurance, it will be required by most brokers and shippers. You will need to submit proof that you carry this type of coverage before you can get hired to haul. 

As with all types of insurance, you should get multiple quotes for cargo coverage and choose the best option. If you already know the brokers and shippers you will work with, ask for recommendations from them and find out what their coverage requirements are.  

Resource: Cargo Insurance: What is it, What are the Types, and Do I Need it? 

Step 10: Obtain Your Unified Carrier Registration (UCR) 

A UCR is a required federal directory of carriers, that replaced the Single State Registration System (SSRS). The collected fees are used to support state safety training and USDOT officer training. 

Any trucking company with interstate operations must register, even if based in a state that does not participate. Non-Participating states include Arizona, Florida, Hawaii, Maryland, Nevada, New Jersey, Oregon, Vermont, Wyoming, and the District of Columbia.

Fees start at $60 for a company with up to two trucks, plus a $75 application fee. For help paying your UCR fees, an economic development grant may help you out. 

Resource: UCR Online Registration

Step 11: Apply for Apportioned License Plates 

Apportioned license plates distribute licensing fees equally between each state a truck passes through. And, they are required for all commercial vehicles that travel between states and weigh 26,000 lbs or more. 

Apportioned License Plates
Apportioned Oregon License Plate from 2018

Apportioned plates are governed by the International Registration Plan Organization (IRP). And, you can obtain more information about getting your plate(s) on the IRP website. 

Resource: IRP Organization’s Website 

Step 12: Register for Your Quarterly Fuel Taxes 

IFTA Decal
IFTA Decal from 2013

Your quarterly fuel taxes are dictated by the International Fuel Tax Agreement (IFTA) and the International Fuel Tax Association. You will need to register with and order decals from your state agency that administers IFTA regulations. All trucks must have an updated IFTA decal to be in compliance. 

Resource: US State Website Directory 

Step 13: Research Other State-Specific Registrations

Do the research within your state and find out which state-specific registrations may be required. For example, depending on where you are located, you may need to apply for intrastate authority. And, Kentucky, New Mexico, New York, and Oregon require a weight-distance tax. Contact your local DMV or state department for more information. 

Final Thoughts

Now that you have the process outlined, you’re ready to launch. Just start networking to find your next job or driver and get on the road! And, if you need help getting financed from zero, find out how to get $100K in business credit without walking into a bank.

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