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A business credit card can give your construction company more financing, various perks, and the ability to build credit. You can also stay on top of your employees’ expenses and grow your business with the right card. 

Contractors and business owners in the construction industry can choose from many business credit cards. This guide will explore what to look for in a good business credit card, how to get a card, and some of the best choices available.

How to get a business credit card for construction and contractors

Many construction companies, contractors, and business owners use business credit cards to stay on top of their expenses. A business credit card also allows business owners to separate their personal expenses from their business expenses, providing a less complicated tax season in the process. Here’s how you can obtain a credit card for your business.

Review your credit score and eligibility

Credit card issuers have several benchmarks in place to minimize the risk of working with borrowers who fall behind on debt. You will typically need a good credit score to get an unsecured credit card. A good personal credit score can help you access some cards, but you will need business credit for other credit cards.

Some people get started with secured business credit cards. These cards are available for people with bad credit and require initial security deposits. Once you build your credit history with a secured business credit card, you can eventually upgrade to an unsecured card.

The Ramp corporate card is another viable option for business owners with good or bad credit. During the application process, Ramp prioritizes a company’s finances instead of your personal credit score. 

Compare credit cards

Once you determine which cards you qualify for, the next step is to compare business credit cards and determine which one is right for you. These are some of the details to keep in mind when reviewing business credit cards.

  • The credit limit: A higher credit limit will let you borrow more capital when you need it for your business. Corporate cards with no preset limits tend to have higher credit limits than traditional business credit cards. The Ramp corporate card can be a good choice if you want to borrow more money as long as you pay back your entire balance by the end of each month.
  • The rewards program: Many credit card issuers have rewards programs to incentivize business owners to use their cards instead of a competitor’s card. Some rewards programs are straightforward, such as Ramp’s unlimited 1.5% cashback on every purchase. Other cards are more complex with elevated rewards and point conversions.
  • Rates and fees: Look for a card’s annual fees, late payment fees, foreign transaction fees, balance transfer fees, cash advance fees, over-the-limit fees, interest rates, and other expenses.
  • Business tools: You should check what cash flow management resources a credit card issuer provides. Many issuers let you auto-generate reports based on your spending and discover ways to keep your expenses low. Some credit card companies offer more than others, and you might also get access to numerous discounts from the best business tools and software.

It’s a good idea to browse through several business credit cards and compare each one. You’ll then establish expectations and know how to differentiate good cards from less promising ones.

Submit your application

You’ll eventually find a business credit card that checks most or all of the boxes. The application process for business credit cards is similar to applying for a personal credit card. Credit card issuers will request several details when you submit your application. Here’s some of the information you can expect to provide:

  • Your personal ID 
  • Employer identification number (EIN)
  • Your company’s name, address, and phone number
  • Years of experience
  • Annual revenue and monthly expenses
  • Your company’s industry and legal structure
  • The total number of employees in your company

Best business credit cards for construction and contractors

While business owners have many choices, these are some of the best business credit cards for construction companies and contractors:

Other financing options for construction businesses

A business credit card gives you the opportunity to borrow capital, build your business credit, and get plenty of rewards. Some of these cards are free to use as long as you pay off your balance at the end of each month, while others have annual fees.

However, a credit card isn’t the only way to finance your business. These are some of the alternatives to consider for your construction company.

Term loans

Business term loans have fixed monthly payments and don't use any collateral. While you can get a personal loan with a good FICO score, business loans have higher loan amounts, especially if you qualify for an SBA 7(a) loan. Term loans can range from three months to 25 years.

Business lines of credit

Business lines of credit let you access capital equal to a predetermined credit limit. You can borrow money against the credit line and make interest-only payments during the draw period. The remaining balance after the draw period either gets converted into a term loan or is subject to a balloon payment. 

Equipment loans

These loans are term loans with fixed interest rates. They use the equipment as collateral and typically have terms ranging from 3-7 years. Lenders will look at your creditworthiness and the equipment’s condition when determining interest rates. Equipment loans usually have lower rates since the equipment becomes collateral.

Invoice factoring

Invoice factoring involves selling unpaid invoices to a factoring company. You receive capital equal to a percentage of the invoice’s face value, and the factoring company collects the payments. Invoice factoring companies look at the invoice recipient’s creditworthiness when assessing how much they will pay for your invoice. Invoice factoring doesn't involve any debt accumulation.

Invoice financing

Some companies let you keep your invoices and collect payments from clients which can preserve a good customer relationship. Invoice financing involves using your unpaid invoices as collateral and repaying the loan when you receive the invoice payments.

Grow your construction company with the Ramp corporate card

Construction companies need good cash flow. The industry has relatively low profit margins, but the right business card can make a difference. That’s where the Ramp corporate card comes in. This charge card doesn't accrue interest and lets you borrow more money than traditional business credit cards. You’ll also save an average of 5% on card spend, while also accessing discounts for top business tools and the opportunity to build business credit.

The Ramp corporate card for startups doesn't have any annual fees and comes with spend management software. You don't need to provide a personal guarantee or go through a credit check to get this card. 

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CPFC, Contributor Finance Writer
Marc Guberti is a certified personal finance counselor and a freelance writer. His work has been featured in US News & World Report, Newsweek, Fox Business, and other publications.
Ramp is dedicated to helping businesses of all sizes make informed decisions. We adhere to strict editorial guidelines to ensure that our content meets and maintains our high standards.

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