Want a corporate credit card with no personal guarantee? The Ramp credit card offers startup founders the opportunity to grow their business while earning 1.5% cash back on every purchase.
The Ramp corporate card is one of many startup business credit cards designed to meet the needs of small business owners. If you have a corporation, limited liability company (LLC) or limited partnership (LP) based in the U.S. with at least $75,000 in a U.S. business bank account, you might be able to use the Ramp corporate card to streamline your expense tracking, save money on monthly bills and earn 1.5% cash back on every purchase.
Is the Ramp card right for everyone? Not necessarily. Sole proprietors are not eligible for the card (though nonprofits are), and many small business owners won’t have enough assets in the bank to apply successfully.
However, some startup founders might be able to use Ramp to help their business ramp up – so let’s break down what the Ramp card offers, how it compares to some of the best corporate credit cards and whether you should consider the Ramp credit card for your business.
What is Ramp?
Ramp is a corporate credit card designed to help small businesses save money on everyday expenses. In addition to the card itself, Ramp also provides small business owners with a spend management platform – and savvy business owners can use these tools in tandem to automate their accounting and lower their bills.
Like many corporate cards, Ramp does not require a personal credit check or a founder guarantee. With Ramp, you can get a business card without a personal guarantee, which means you don’t have to worry about your personal credit score affecting your eligibility. You also don’t need to fret about losing credit score points after a hard inquiry into your personal credit, like a typical application for a consumer card would.
Plus, since you are not personally liable for any charges made on the Ramp credit card, you can keep your business and your personal finances completely separate. Startups can be financially risky, so being able to separate your business’ financial concerns from your personal assets is a huge benefit.
Ramp card benefits and perks
The Ramp credit card offers unlimited 1.5% cash back on every purchase – and that goes not only for your purchases but also for any purchases your employees make on their Ramp cards. These cash back rewards can quickly add up, especially for a growing startup. If your business puts $50,000 on a Ramp startup card every month, for example, that’s $9,000 in cash back in one year.
In addition to cash back rewards, the Ramp card also offers expense management tools designed to help startups streamline their accounting and save money on the cost of doing business. Ramp uses algorithms to identify wasteful spending, and it sends your finance team notifications whenever it spots price increases, duplicate subscriptions and other indications your company might be spending more than necessary. According to Ramp, companies using the Ramp corporate card save an average of $100,000 or more.
Is the Ramp corporate card a high limit business credit card? It depends. Ramp credit limits are set dynamically and are based on your company’s balance and revenue. That said, when used wisely, the Ramp card can offer enough credit to help your business grow. Use your Ramp credit responsibly, and you could find your business ramping up faster than you realize.
Ramp vs. other small business cards
There are a lot of small business credit cards out there, including business charge cards that don’t come with preset spending limits. How does the Ramp credit card compare?
Ramp card vs. Brex 30 Card
Let’s see how Ramp stacks up against the Brex 30 Card, another popular credit card for startups that does not require a personal guarantee. While both Ramp and Brex offer credit card rewards, Brex cardholders don’t earn a flat-rate cash back percentage on every purchase.
Instead, Brex offers a rewards structure dependent on how often you make payments (daily or monthly) and whether your business is in tech or life sciences. Overall though, the rewards are based on the purchase category: up to 8X on rideshares, 5X on Brex Travel, 4X on restaurants, 3X on recurring software and 1X on other purchases. You can even earn 3X points on eligible Apple purchases.
If your business doesn’t spend a lot of money on rideshares, flights or hotels, you’re already at a disadvantage – and might want to consider the Ramp corporate card instead.
On the other hand, businesses with less than $75,000 in the bank might be more interested in the Brex card. Unlike Ramp, Brex does not include a minimum asset requirement in its eligibility guidelines, but you are only eligible if you’re a corporation, non-individual liability company or nonprofit as well.
Ramp card vs. Capital One Spark Cash Plus card
This business charge card is particularly popular, and as we mentioned, has no preset spending limit: the Capital One Spark Cash Plus. This card gives 2% cash back on all purchases, plus a sign-up bonus of up to $1,000 – $500 if you spend $5,000 in three months, then another $500 if you spend $50,000 in the first six months.
As a charge card, you must pay off all purchases at the end of every billing cycle, rather than carrying over balances and being charged interest. If that seems infeasible for your small business, perhaps the Ramp corporate card would be a better idea.
The Capital One Spark Cash Plus card is good for business owners who like to redeem cash back as statement credits for future credit bills. However, Capital One also lets you redeem as a check, gift card or payment to Amazon.com or PayPal.
With more and more companies adopting hybrid work, perhaps your employees will travel around a little, such as between their home state and the company headquarters, and you need to track their expenses and itineraries. A newly launched feature, Ramp for Travel, enables employees to create travel policies, book travel and receive automated expense reports.
Should you sign up for the Ramp corporate card?
If your small business is a corporation with at least $75,000 in cash, you might want to consider the Ramp corporate card. It’s a great way to get a business credit card for your startup without having to provide a personal guarantee or risk a hard pull to your credit, and you can use Ramp’s expense management tools for startups to help your business save money.
The Ramp card can also help your startup scale more easily – and it might be just the tool you need to take your business to the next level.