Compare business credit card offers with frequent flyer rewards points programs
A business frequent flyer credit card allows you to earn frequent flyer points for your business expenses, through linkage to a frequent flyer points rewards program. By using one of these cards for your business, you can earn points to put towards rewards like flights, flight upgrades, lounge passes and more.
These cards are convenient lines of credit for your business, especially in those times when you need extra cashflow. You can also get purchase and travel insurance from certain cards. These cards usually offer uncapped points, unlike personal frequent flyer cards, so you can rack up as many points as you like to redeem at a later date. Keep in mind that some points may expire, so remember to check the terms and conditions before you apply.
Business Frequent Flyer Cards
How do Business Frequent Flyer Cards work?
Since most businesses use some kind of credit card, you may as well reap the benefits of a rewards card while taking care of your business expenses. There is no size requirement for the business so you can be a small business or a large corporation and receive the same business card as long as you can afford the rates and pay for the charges.
You can earn points for every dollar you spend on some cards (the points depend on the specific card), so while you are buying your supply of printer paper and toner you can earn points to put toward your next business trip. If you are a small business that doesn’t have a large spending rate, it may take you longer to accumulate enough points to earn any worthy rewards, if you feel that you don’t have enough spending to warrant a rewards card, you may want to consider other options for your business, like a standard business credit card.
You could also benefit from travel insurance, a concierge service and purchase protection. If you already have a business credit card you can usually link your card to a frequent flyer program or other rewards program. This will allow you to transfer points to the program in order to get closer to earning your next reward.
Not all cards are the same. Make sure you compare the available cards to get the right benefits and rates for your individual business. You should also look out for specific promotions. Some banks will offer you bonus points for your initial purpose, for spending a certain amount of money, or for just signing up in general.Back to top
How to compare Frequent Flyer Credit Cards for your business expenses
Here are the questions you should be asking yourself before applying for business frequent flyer card. You will need to look at the cashflow and style of business and determine whether the rewards will return value.
- Who qualifies for a credit card? Most businesses can qualify for a frequent flyer points business card regardless if they are small, medium or corporate size. If you can afford the rates and charges, pass the eligibility criteria and have a good credit history, then a business credit card could be suitable for your business.
- Will this card benefit me even if I don't fly often? This depends on the type of card you choose. If you choose one linked to a frequent flyer program then you're limiting your business to the rewards that the card offers. Having said that, some programs allow you to redeem points for merchandise, cashback and electronics.
- What if the monthly spending for my business is not high? If your business is relatively small and monthly spending is minimal, then it will take some time to generate enough points to earn full flights. Points earned, however, could be enough to upgrade a flight and therefore, careful consideration should be done to determine if frequent flyer points could benefit your business.
- How many points should be earned to qualify for a complimentary flight? Complimentary interstate flights within Australia will require fewer points when compared to international flights, and are subject to airline and destination. For example, a flight from Brisbane to Sydney with Qantas airlines is 11,000 frequent flyer points. A flight from Melbourne to London flying with Qantas airlines is 192,000 frequent flyer points.
- Are there different frequent flyer programs? Yes, various reputable airlines have joined in the frequent flyer program including Qantas, Emirates, Singapore Airlines and Virgin Australia.
- Which airline is leading the frequent flyer program? There are various reputable airlines joining in the program but Qantas is regarded as the leader in the market.
- Will I need to obtain a Qantas account? Yes, in order to earn frequent flyer points with Qantas, you will be required to have your own account.
- Is there any annual fee payable for a Qantas frequent flyer account? No annual fees are payable by Qantas members over and above the one-time joining fee. An $89.50 enrolment fee does apply to businesses who are not yet members. Many cards waive this fee upon application.
- What other fees could possibly apply? Businesses will be required to earn or spend points within a specific period of 18 months to keep the Qantas account active. Besides the Qantas enrolment fee, businesses might be required to pay a yearly fee for the specific choice in credit card. Some credit cards could levy no yearly charges, and so it may be wise to compare the overall value of each credit card for your business.
Business Frequent Flyer Cards Review
- Paying off the balance in full for maximum benefits
In order to get the maximum benefits from your business frequent flyer card it is a good idea to maintain a zero balance on the card. You should pay off the balance completely each month as many of these cards charge a high interest rate to fund the reward programs.
- Consider the rewards
When looking at any rewards card you should make sure that the rewards offered are worth it to you and your business. If the travel rewards aren’t useful to your business because there isn’t a lot of air travel required, you may want to look elsewhere. That being said, you shouldn’t ignore the cashback rewards that are offered as they can be helpful to your business during periods of decreased cashflow.
- Minimum spend requirements
When comparing frequent flyer cards, be sure to check if there is a minimum spend amount in order to earn rewards. Some cards say that you must make it to a certain amount of points in order to get a flight rewards while others give you bonus points when you spend a certain amount of money. Certain cards may also specify how much an initial purchase must be in order to start your rewards programme.
Features of Business Frequent Flyer Cards
- Annual fees. Similar to personal frequent flyer credit cards, business frequent flyer cards have annual fees that can sometimes be high. The annual fees for business frequent flyer cards can range from as low as $100 up to over $1,000. Some cards may waive the annual fee for the first year. If you get a Qantas frequent flyer card, you won’t have to pay an annual fee but you will have to pay a joining fee of around $90.
- Additional cardholders. Due to the nature of a business, other employees may need to have access to the credit card account. Many business credit cards allow multiple additional cardholders for no extra fee. It's only when you need more than 20 or so additional cardholders that a fee will apply.
- Interest rates. The rates fluctuate with the type of transaction and should be monitored so you know what you are paying. You should also research whether the card you want has interest free days or similar promotions
- Travel rewards. The most attractive feature of these frequent flyer cards are, of course, the rewards. The idea of earning points as you make necessary purchases of pens, paper clips, printer toner, and other materials, make the sometimes mundane task of running a business a little more fun. When you turn those points into rewards like an upgraded flight or cashback, the card’s annual fees and fluctuating interest rates seem well worth it.
- Additional features. Some cards may also offer balance transfers for competitive rates. This allows you to transfer any credit card debt from one card to your frequent flyer card in order to take advantage of the lower interest rate on your frequent flyer card. You should also research if additional cards are available for free or a low fee. Some cards also offer you a way to download your expense reports to readable formats via Quicken, Microsoft Excel and MYOB.
Pros and cons of Business Frequent Flyer Credit Cards
Most businesses will experience periods of reduced cashflow, which can be a stressful period regarding defaulting on accounts payable or being unable to maintain the business during these times. A business credit card can seem like a straightforward solution to cash flow concerns, but there are a number of potential things to look out for.
- Airline travel rewards can be useful if the business engages in frequent business trips. If the business doesn’t engage in travel, then cashback rewards are a great way to maintain cashflow.
- Immediate access to funds for business expenses when cashflow is low. You also reap the many benefits of the rewards programmes your credit card is linked to.
- Business credit cards are a great way to establish record-keeping. They are easier to apply for compared to other lines of credit and most credit cards allow you to export the spendings to MYOB, Xero, Quicken and more.
- Separate your business and personal expenses.
- Similar to personal credit cards, you need keep in mind what you can afford. Business credit card providers may not be as generous as personal ones with things concerning damaged and faulty goods as well as insurance.
- Fluctuating interest rates could mean interest repayments are higher. It may be worthwhile to find a credit card that does not charge you for every transaction.
How to apply for a Business Frequent Flyer Card
Like any credit card, you must apply and be approved in order to get a frequent flyer business credit card. Before you begin the application process, check the eligibility requirements for your desired card. Most cards require you to be an Australian resident over 18-years-old and have an ABN, but frequent flyer business cards also have other eligibility requirements.
- Good credit history. Since these reward cards usually have a high credit limit, it is important that you have a good credit history. This will ensure that you can keep up with the payments and that you understand what it takes to maintain a zero balance on your card.
- Be a small, medium, or large business in Australia. In order to be able to apply for a business rewards card you must be a registered business in Australia. You don’t have to be a large co-operation to benefit from the card, you can be a small business and still get approved.
In order to make the application process easier, you should have some documents available with you so you can refer to it right away if you have to.
- Income information. You may need to provide details about your annual income. Having pay stubs, last year’s taxes, or bank statements on hand can help with this. You may also need your business’s full name and address as well as your accountant’s information ready.
- Identification information. You may also need some information regarding your business. In order to establish proof of identity you may need your business’s registration number or tax number as well as the full licensed name and address. You may also have to provide your own identification information as the owner of the business.
Business frequent flyer cards are a great way to earn rewards while maintaining your business. They can also help you keep records of your business’s transaction history. If you’d like to compare credit cards or find out more information on them, visit finder.com.au for comprehensive information on the matter.Back to top