credit-card-for-different-businesses

Credit cards for different sized businesses

Cut costs and maximise rewards by finding the right credit card for your business size and organisational needs.

If you’re the owner of a startup or small business, it can be tempting to use your personal credit card for company transactions. However, it’s important to separate personal finances from the business’s. The right business credit card can improve your company’s cash flow, cut costs and access various rewards while establishing good credit history for your business. No matter the size of your company, this page will guide you to the right business credit card for your financial needs.

What types of cards suit businesses?

Different types of credit cards are best suited to different businesses, including:

Business charge cards

Business charge cards offer the ability to delay payment on items for a short period, however you’re required to pay your entire charge card balance in full by each statement due date. Unlike regular credit cards, charge cards come without interest fees or pre-set spending limits. Instead, a late payment fee is applied if you don’t pay your balance in full by the due date.

Business rewards credit cards

Business rewards credit cards let you earn rewards points for each $1 spent on eligible purchases. This lends to increased points earning capacity when additional business cards are linked to the one account. Some personal cards don’t allow cardholders to earn points on business purchases, so this type of card caters for cardholders who frequently use their card for corporate costs.
Plus, you can use the points you’ve earned to redeem rewards to treat your employees. These cards usually come with high annual fees and interest rates, so they’re suited to cardholders who regularly repay their balance in full.

Business frequent flyer credit cards

Similar to rewards credit cards, business frequent flyer credit cards let you earn frequent flyer points for each $1 spent on eligible purchases. Your points will either be directly debited to your frequent flyer account or you will have the option to exchange your rewards for points with partnered airline programs. These cards can be a useful option for business owners who travel frequently and can be a good way to reward employees or cut costs off future business trips.

Business platinum credit cards

Business platinum credit cards come packed with platinum perks, including complimentary insurances, concierge services, card rewards and high credit limits. These features usually come at the cost of a high interest rate or annual fee.

Business balance transfer credit cards

If you’re struggling to repay a business debt, you could consider a balance transfer card. These usually offer 0% on balance transfers for a promotional period, allowing you to repay your debt without any additional interest costs. These cards are useful for debt consolidation and reducing the administrative fees that may come with holding several cards at once.

Business low rate credit cards

Business low rate credit cards are characterised by low standard variable purchase interest rates, which offer smaller companies and sole proprietors an affordable credit option. This means you’d pay less interest when repaying your card balance over a longer period of time. This type of card would be useful if you frequently carry a balance from month to month.

Business low fee credit cards

Similar to low rate credit cards, business low fee credit cards are also designed with affordability in mind. Offering low or no annual fees, these cards provide a line of credit at minimal cost.

Different types of businesses and their typical credit needs

business-workstation

The size of your business and your credit needs can help you narrow down your credit card search.

Typically, startups and small businesses require a credit card for improving cash flow, and would fare well with a low rate or low fee no-frills credit card. Medium enterprises may find themselves looking more at business rewards cards and frequent flyer credit cards, especially if employee travel is common.

Large corporations usually go for platinum cards and rewards cards, since their large number of cardholders can generate rewards quickly while enjoying perks like concierge services and airport lounge passes.

Depending on its existing debt, a business of any size may find a business balance transfer credit card useful for consolidating debt and reducing interest fees.

Make sure to consider these factors while you’re comparing your options.

Compare business credit cards

Rates last updated October 16th, 2018
Name Product Bonus Points Rewards Points per $ spent Complimentary Travel Insurance Annual fee Minimum Income Product Description
NAB Rewards Business Signature Card
100,000 bonus points
1.25
No
$175 p.a.
Earn 100,000 bonus points when you spend $4,000 on everyday business purchases in the first 60 days of account opening.
NAB Qantas Business Signature Card
100,000 bonus points
0.66
No
$295 p.a.
Receive 100,000 bonus Qantas Points and earn points on everyday business purchases. Also get up to 44 days interest-free and multiple cards.
American Express Gold Business Card
1
Yes
$169 p.a.
$24,000
Take advantage of a no pre-set spending limit, data that feeds to MYOB and up to 51 days interest-free on purchases.
NAB Low Rate Business Card
$0 p.a. annual fee for the first year ($60 p.a. thereafter)
Manage your cashflow with up to 55 days interest-free on business purchases and receive complimentary unauthorised transaction insurance.
American Express Qantas Business Rewards Card
100,000 bonus points
1.25
Yes
$450 p.a.
$24,000
Earn 100,000 bonus Qantas Points, 2 Qantas Points per $1 spent on eligible purchases plus 2 domestic Qantas Club lounge passes.
American Express Platinum Business Card
120,000 bonus points
1
Yes
$1,750 p.a.
$75,000
Get 120,000 bonus points, platinum concierge, complimentary lounge passes, overseas travel insurance and luxury hotel benefits.
American Express Velocity Business Card
1
Yes
$249 p.a.
$24,000
Take advantage of Velocity Points per $1 spent, no pre-set spending limit, data that feeds into MYOB and up to 51 days interest-free on purchases.
American Express Business Explorer Credit Card
100,000 bonus points
2
Yes
$395 p.a.
$24,000
Earn 100,000 bonus points when you meet the spend criteria. Plus, 2 yearly entries to the American Express Lounge.
American Express Business Card
1
Yes
$109 p.a.
$24,000
Earn up to 1.00 Membership Rewards point per $1 spent and extend your cashflow with up to 51 interest-free days on purchases.

Compare up to 4 providers

How to apply for a card for your business

You can apply for most business credit cards online. Similar to individual credit card applications, your business will need to meet specific eligibility requirements and you’ll need to provide necessary documents when applying.

Eligibility requirements typically include the cardholder’s age, residential status, the company’s Australian Business Number (ABN) and credit score. In addition to your personal details, you’ll also need to provide financial information, your accountant’s information. You’ll also be required to provide documents such as tax statements, pay slips and Business Activity Statement (BAS) reports.

While a business credit card may be helpful for your business, it is important to make sure you choose the right one for your specific organisational needs. Remember to research and compare available options before deciding which card to apply for.

Back to topPicture: Shutterstock

Sally McMullen

Sally McMullen is an editor at finder.com.au who is a credit cards, frequent flyer and travel money expert by day and music maven by night.

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