Amazon sellers usually use credit cards to purchase online stock, especially those engaged with online arbitrage, credit cards are super important! But just like my article on business bank accounts, choosing the right credit card for Amazon sellers is a tough task.
So I’m going to share with you today my thoughts on the top credit cards that might help you boost your Amazon Business.
First things first, the most common types of business on Amazon are Sole Trader and Limited Company. The difference between the two is simple. Sole Traders are sellers who usually use their credit cards linked to their personal credit file, usually this is a smaller business. Limited Company is usually a more serious Amazon seller and they have credit cards linked to their business credit file, not a personal (director) credit file.
Now, how can Sole Traders and Limited Companies take advantage of the benefits of credit cards? Here’s a rundown of the Top 3 credit cards that Sole Traders and Limited Companies may choose from. Note that options are ranked in no particular order.
Barclaycard is a credit company related to Barclays. It offers three types of business credit cards: Premium Plus, Select, and Flex.
If you’re a business owner who spends a lot of time travelling or who buys stock in various foreign currencies, then the Premium Plus may be the most suitable for you. You get to have 0.5% cashback on your purchases and 2% savings on foreign exchanges.
But if you want more control over your purchases and employee expenses, go for the Select Credit Card. It offers a 6-month interest-free period and no annual fee for the first year!
The Flex Credit Card, meanwhile, is ideal for sole traders or start-ups with no huge or regular cash flow yet. It has no annual fee and a 3-month interest-free period. Plus, if you’re a new Amazon seller, you get to have 25% on the first £200 you spend on Amazon business.
American Express Business Cards is the second credit card I can recommend. It has three kinds as well: Gold, Platinum, and Basic.
I personally use AMEX Gold for my Amazon business, because of its affordability. The benefits are just about right for me as well. AMEX Gold has 20,000 bonus membership rewards points and for every £1 spent using your card, you get 1 membership reward point. With the annual fee of just £125, I’m able to convert my purchases into rewards and keep my money, flowing!
If you like to use your card primarily for travel, then you can check out the AMEX Platinum. With an annual fee of £595, you can get 40,000 membership rewards points plus the other perks similar to AMEX Gold.
But if you’re a young Amazon seller who would still like to keep it safe in terms of financial risks, then you can apply for the AMEX Basic first. While it has £0 annual fee, it has no membership rewards points yet. Nonetheless, having an AMEX card entitles you to other privileges such as world-class service and no pre-set spending limit.
The 3rd credit card on this list is Santander Cashback Credit Card, which I also use in my Amazon business. I highly recommend Santander because of the following benefits I enjoy very much: 1% cashback on all business spend, no foreign transaction fees when buying abroad using the local currency, and £30 annual fee.
Santander has only one type of credit card – this can be good for some because they don’t have to choose from a variety of options. For others, however, choices are important so they can pick the best one that fits for their utmost needs. Nonetheless, the perks of Santander can be great for all. It has a very low annual fee for exquisite service and reputation.
If you have additional thoughts, let me know! It would be great to hear feedback from you on the credit cards you use, especially if you find a great one that isn’t listed here.