In the age of digital, remote entrepreneurship, the right business credit card with no foreign transaction fees can facilitate and streamline your business in unexpected ways. For one, as a founder and or CEO of your own globally-minded business, you'll no longer be confined by the complexity of foreign transactions (or their high fees).
This guide will give you a quick and neat intro to the world of business credit cards with no foreign transaction fees.
What are the Trends Behind Remote Business Owners and Founders?
The rapid evolution of the workplace is forcing businesses to adapt, not only to survive but also to seize new opportunities. Let's delve into the key trends that fuel this transformation among businesses across the globe.
Better high-speed internet
The global internet bandwidth market witnessed an impressive 28% surge throughout 2022. This increase in high-speed connectivity not only empowers remote entrepreneurs with seamless communication but also opens doors to a broader pool of global talent.
Expect the rise in bandwidth availability to lead to an upswing in:
- Video conferencing
- Cloud-based collaboration tools
- Virtual team management platforms
Entrepreneurs are increasingly turning to freelancers to fill workforce gaps efficiently. A whopping 78% of business owners are leaning towards using freelance talent in the future.
This trend will keep fueling the rise of freelance platforms, project management tools, and online marketplaces connecting entrepreneurs with skilled professionals.
According to the EHRC, the majority of today's workforce (54%) embraces part-time or flexible roles, with 63% of full-time employees already working flexibly.
This shift towards flexibility empowers remote business owners to curate diverse, on-demand teams. This will lead to a surge in demand for scheduling and productivity apps, as well as tools facilitating remote team collaboration and monitoring.
Better business tools
The average business is already using over 130 SaaS apps to help navigate complex operations, like Global HR and Employer of Record.
These solutions simplify international hiring, compliance, and payroll management. This allows remote business owners to more effectively expand their global footprint and manage a borderless workforce.
Why Get a Business Credit Card for Your Remote Business?
Running a remote business comes with unique challenges, but a business credit card can be a trusted ally. Here are some of the reasons why businesses, and startups in particular, should consider it:
- No Foreign Transaction Fees: Business credit cards can save you an average of 3% to 5% on international transactions compared to personal cards, thanks to waived foreign transaction fees.
- Expense Management: Simplify bookkeeping with detailed monthly statements, categorized spending, and the ability to set individual spending limits for employees.
- Rewards and Cashback: Earn rewards or cashback on your everyday business expenses. Some cards offer up to 2% cashback on all purchases.
- Travel Perks: Perks like travel insurance, airport lounge access, and travel credits, can significantly reduce business travel-related expenses.
- Credit Building: Build a separate credit history for your business, which can be beneficial when seeking financing or loans for expansion.
- Employee Cards: Issue multiple employee cards with individual spending limits, making it easier to manage expenses for your remote team.
- Introductory Offers: Many business credit cards offer introductory 0% APR on purchases, providing a temporary financial cushion for business expenses.
- Business Financing: Some cards offer low-interest rates for financing larger purchases, helping you maintain cash flow.
A good business credit card is not only a major convenience but can have a positive impact on your business’s bottom line.
Business Credit Card Use Cases
The main advantage of a business credit card is the versatility it offers in managing various expenses, especially for remote businesses. Here are some typical use cases to consider:
International Business Trips
For instance, an international business trip will typically involve expenses like flights, hotels, and dining. A business credit card, like the American Express Platinum, e.g., simplifies these transactions and comes with perks like airport lounge access, which can improve your experience. Not to mention airline points and other incentives, which can help you save on future trips.
Marketing campaigns involve a variety of (sometimes unpredictable) costs for advertising, social media promotions, and analytics tools. A business credit card can give marketers more freedom to make the necessary transactions on the fly while also providing a clear audit trail.
Some, like the Chase Ink Business Cash card, actually give cashback rewards on advertising purchases.
Your remote business may rely heavily on subscription-based SaaS software. However, managing recurring payments and rewards or discounts on software subscriptions across multiple accounts can be a headache.
A business credit card allows you to unify and simplify these payments. Also, most offer cashback on all purchases, including software subscriptions.
Whether you have a small company HQ, or work from a home office - a business credit card streamlines these purchases, and may offer rewards or cashback on office-related spending.
For instance, there are a variety of business credit cards that offer cashback incentives, specifically on office supply store purchases.
Where Can I Find Good Business Credit Cards?
Finding the right business credit card depends on various factors, including your business's location and financial standing.
Let's explore the options available to businesses both internationally and in the United States.
Country Where You Incorporated Your Business and Have a Bank Account
- Business incorporated in the same country
- A local business bank account
- Proof of revenue and creditworthiness in the respective country
Depending on your country, you may also need a physical business address, meet minimum bank balance or annual revenue requirements, or show proof of having an operational presence in the country.
In many countries, having a strong credit history, stable business revenue, and a legal business entity is a common theme. However, local nuances and regulations may affect eligibility criteria.
- A US-based business entity (e.g., LLC or corporation)
- A US business bank account
- A Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN)
- A credit history in the US
In general, US-based businesses have a broader range of options, with higher credit limits, more rewards and perks, and tax benefits. However, it also has a relatively strict regulatory environment, with an emphasis on your credit score as an eligibility factor.
While getting a US business card for foreign-owned businesses is not impossible, it can be exceedingly challenging and complex. It often requires establishing a US-based subsidiary or branch.
In most cases, it will make more sense to consider alternative payment solutions like a Wise International Business Debit Card.
Key Considerations for Remote Entrepreneurs for Business Credit Cards
Not all business credit cards are equal, and you’ll be able to find ones that better align with your business’s goals and needs if you shop around and know what to look for. Here are key factors to weigh:
Foreign Transaction Costs
- Look for cards with no foreign transaction fees
- Save an average of 3% to 5% on international transactions
Travel and Business Expense Rewards
- Earn travel points, cashback, or miles on business expenses
- Access to travel benefits like airport lounge access and travel insurance
- Ensure the card's credit limit suits your business spending needs
- Consider cards that offer credit limit increases as your business expands
- Weigh annual fees against rewards and benefits
- You can find cards that waive the first-year annual fee, but consider how the fees will affect you in the future
- Manage employee spending with individual card limits
- Access detailed spending reports for better expense tracking
- Evaluate interest-free grace periods for expenses
- Understand minimum payment requirements to avoid interest
Integration with Accounting Software
- Choose cards that integrate with your accounting software
- Simplify expense tracking and reconciliation for your remote team
Types of Business Credit Cards with No Foreign Transaction Fees
Here is a quick rundown of different options that might help you find the best business credit card with no foreign transaction fee for your needs:
In the ever-evolving world of business, choosing the right business credit card can be a game-changer. From avoiding foreign transaction fees to unlocking travel perks and rewards, these financial tools empower remote founders to navigate global markets with ease. Select wisely; enjoy the various benefits of a business credit card and see your ventures sail through.