I Used a Credit Card and Rewards to Pay My Business Start-up Costs


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When I began my enterprise a few years in the past, I did not need to dip an excessive amount of into my private financial savings account to entrance the start-up prices. I knew that if I pulled an excessive amount of money out of locations like my emergency financial savings account or retirement fund, I would by no means pay it again.

Instead, I determined to open up a small-business bank card, the Capital One Spark Miles for Business, and use it in a strategic and well-planned method in order that I might use it to pay for preliminary prices whereas additionally placing all of the rewards I earned proper again into my enterprise.

The Capital One Spark Miles for Business gives a bonus of 50,000 miles when you spend $four,500 on purchases inside the first three months. With so many start-up prices, I knew I’d be spending greater than that in that point.

Here’s how I paid for preliminary start-up prices utilizing this Capital One bank card and used the miles I earned to assist develop my enterprise.

Annual Fee

$95, waived the primary 12 months

Regular APR

20.99% variable APR

Featured Reward

50,000 miles when you spend $four,500 on purchases inside the first three months

Chevron icon It signifies an expandable part or menu, or generally earlier / subsequent navigation choices.

  • Pros & Cons
  • Details

  • Pros
    • No bonus classes to maintain observe of
    • Annual payment is waived the primary 12 months
    • You can redeem miles to erase journey purchases out of your assertion, or you’ll be able to switch to numerous airline and lodge packages
    Cons

    • Unlimited 2X miles on each buy with your corporation bank card with no blackouts or seat restrictions and no minimal to redeem
    • One-time bonus of 50,000 miles – equal to $500 in journey – when you spend $four,500 on purchases inside the first three months from account opening
    • $zero intro for the primary 12 months, $95 after that
    • 5X miles on lodge and rental automobile bookings by Capital One Travel℠
    • Receive up to $100 credit score for Global Entry or TSA Pre® while you use your Spark Miles card
    • Quickly and securely obtain your buy information into a number of codecs together with Quicken®, QuickBooks® and Excel®
    • No Foreign Transaction Fees


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    I redeemed miles for enterprise journey

    I first opened up the Capital One Spark Miles for Business to pay for a handful of high-priced enterprise start-up prices (from working with authorized and accounting professionals to buying gear), so I in a short time met the minimal spending requirement to earn the 50,000-mile bonus.

    I knew that round 5 – 6 months after beginning the enterprise, the journey would kick in and I’d want to plan for a minimum of one round-trip flight throughout that time-frame. That’s precisely what I put among the miles towards and was in a position to fly two occasions with out paying a penny.

    It helped that I had a technique and plan for what the primary six months of being in enterprise would appear to be. It allowed me to apply for the bank card on the proper time (when I had a lot of back-to-back bills) and when I’d want to use these reward factors to cowl enterprise journey that was on the horizon.

    Plan as far forward as you’ll be able to while you’re beginning a enterprise so you’ll be able to handle your preliminary spending to maximize bank card gives and rewards. 

    I coated purchases with miles

    During the primary couple of months of beginning my enterprise, I discovered myself shopping for much-needed objects that have been across the $5 to $25 value level. Some of these objects included on-line software program to assist with advertising and marketing and enterprise playing cards.

    I determined to use round 25,000 miles to cowl these smaller objects. While I might have paid them off with money, these small objects began to actually add up, and having the ability to pay for some utilizing bank card rewards helped me decrease my steadiness.

    Keep observe of your spending while you first begin a enterprise so you’ll be able to decide which purchases you need to pay for with bank card factors to decrease your invoice (and even make it easier to decrease your bank card utilization). 

    I used miles to pay for Amazon purchases

    One perk of the Capital One Spark Miles for Business is that it provides you the choice to use your bank card rewards while you take a look at at Amazon. As a new enterprise proprietor, I discovered myself shopping for one thing on Amazon a minimum of as soon as a day (principally a lot of workplace provides). I used round 10,000 miles for these purchases that have been round $75 whole.

    Check out how your bank card reward factors are structured and see the place else you’ll be able to redeem them. Even in case your rewards program is primarily travel-oriented, some bank cards provide the possibility to use these factors at retailers or on e-commerce web sites. 

    I cashed in miles for present playing cards to purchase workplace provides 

    Because I was utilizing my bank card a lot throughout these early months, and incomes 2x miles on each buy, I began accumulating a couple of thousand miles each month. 

    I began to use a few of these factors (on the six-month and nine-month mark of beginning the enterprise) to purchase present playing cards, principally to cowl the acquisition of electronics. I used 12,500 factors to get a $100 present card from Best Buy that helped me purchase a USB microphone to use for my enterprise.

    Capital One miles are value, on common, 1.three cents every in accordance to Insider’s points and miles valuations. That’s in part because you can transfer them to airline and hotel partners and potentially get outsized value. You’ll typically get less of a return if you redeem for gift cards or statement credits.

    Eyeball how your credit card points can convert to gift cards from retailers (you can access them through your credit card reward portal). It can be a good way to use your points to grab gift cards from stores or even restaurants you know you’re going to need something from in the near future.

    I traded miles for cash to pay for one-off services 

    At the nine-month mark of starting my business, I decided to use any leftover miles I had to redeem for cash.

    I had a few one-off providers to pay for (a copy editor and a picture editor) that I needed to pay for utilizing money and not put their payments (which ranged from $25 to $50) on my bank card. I determined to redeem 15,000 miles for $75 in money (mailed to me as a test). I used that money to pay these distributors. 

    There are so many alternative methods you should use your bank card factors while you’re beginning a enterprise. Begin by understanding, forecasting, and planning for upcoming bills. Then do a deep dive so you’ll be able to strategize how to use the completely different reward choices your bank card gives. These factors can do extra for you and your steadiness than you suppose — you simply have to get inventive. 

    Jen Glantz is a private finance author, small-business proprietor, and the writer of Amazon-bestselling books “All My Friends are Engaged” and “Always a Bridesmaid for Hire.” 



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