Business Credit Card with Rewards Points

With a Business Credit Card business owners and freelancers can easily keep track of business expenses whilst earning valuable rewards for purchases made using the credit card. 

Whether you are focused on finding a low interest rate business credit card or to be rewarded for your business credit card spending our comparison tools are designed to help you select the right business credit card for your business needs.

Business credit cards and personal credit cards operate in much the same way, providing you access to funds up to a fixed limit and allowing you to pay off your debt over time (with interest charges). Both personal and business credit cards include the same costs such as interest rates and annual fees, and often include features such as rewards programs, complimentary insurance and interest free days.

Business credit cards are designed specifically to cover work related expenses and often include features such as additional cards for employees, customisable spending limits for different users and expense tracking. Most business credit cards also include analytics tools to help with business reporting and budgeting.

 

How to select the Best Business Credit Card

1. Business spending habits

A primay consideration when assessing business credit cards is ensuring the credit card matches your existing business spending. Many business credit cards include long lists of features which can be very persausive, though many of these features will play no role in helping you maximise value while operating your business.

When selecting a business credit card it is important to undersatnd the types of transactions your business regularly signs off on. In credit card terms, this would include eligible purchases, capital expenses, additional cardholder spending and business travel needs. Once you are aware of the transaction types you can then look for a card which caters for these types of transactions.

For example, if your business uses a credit card for flights and regularly pays it off, a frequent flyer business credit card might represent good value. On the other hand, if your business relies on the credit card for credit, a low rate, low fee or interest-free days business credit card might be the most affordable option.

2. Fees and charges

All Business Credit Cards feature a range of fees and charges which should be considered as part of your comparison. The main fees and charges you should review are outlined below:

  • Annual fees - Business credit card annual fees range from $0 to $1,500, depending on the services included with the card.
  • Supplementary cardholder annual fees - A limited number of business credit cards still offer additional cardholders at no extra cost, though most now charge a fee of between $10 to $150 p.a. per cardholder.
  • Standard interest rates - Purchase Rates start at 9.99% p.a. and peak at aound 22% p.a.
  • Currency conversion fees - applied for transactions made overseas or in a foreign currency and is typically 3% to 3.5% of the transaction value.
  • Minimum required monthly payments -  minimum payments are generally in the range of 2% to 3% of the outstanding balance The exception is charge cards where the full balance for each statement cycle must be paid.
  • Overlimit fees -  If any cardholder breaches the credit limit on the account, a fee of $10 to $30 may be applied.
  • Late payment fees - Failure to make a payment on your business credit card will generally attarct a fee. This cost is usually around $10 to $30 but could be higher for some options, particularly charge cards.

3. Business Credit Card Features to help you get the most value from your Credit Card

  • Online business banking - Business credit cards usually give you all the access you would expect from banking online, such as 24/7 access to your account plus business security options such as encryption technology for peace of mind. Business applications may also allow mobile management so you can bank on-the-go with your business.
  • Complimentary insurance - Many business credit cards include complimentary travel insurance and liability insurance for the account.
  • Expense management systems - Expense management systems give you control and simplicity, providing an all-in-one solution for: 24/7 monitoring, budget tracking by creating standard or custom reports, clear visibility of company spending and recognising patterns to better manage cycles in spending. Multiple reporting formats including MYOB, Microsoft Excel, Word, PDF, HTML, XML, CSV and Tab-delimited.

 

How to apply for a business credit card

Before you apply for any business credit card make sure that you meet the following eligibility requirements and have organised the necessary documents to complete the application:

Eligibility requirements

  • Age - You must be at least 18 years of age to apply for a business credit card in Australia.
  • Residential status - You must be a citizen or permanent resident of Australia.
  • ABN - You must have a valid ABN (Australian Business Number) to apply.
  • Credit score - You must have excellent credit history to apply for a business credit card.

Documents and information required to support your application

The other details you will be asked to provide vary depending on the credit card and whether you choose a business liability or personal liability option. But generally you will need to provide:

  • Contact details - details for you and/or your business.
  • Proof of identification - A valid form of identification, such as your driver’s licence or passport.
  • Financial information - You'll need to provide information about your income and/or revenue as well as any assets and liabilities, including investments, debts and regular expenses. 
  • Additional cardholders - If you wish to manage your employee's spending under the one account, you'll also need to provide the details of any supplementary cardholders.
  • Accountant's information - If you're self-employed, you may be required to include your accountant’s contact information. 
  • Other documents - Supporting documentation such as personal tax statements, pay slips and BAS reports may also be required.

Once you have submitted your application, you should get a response within a few minutes. If you’re approved, you could have your card in as few as 5 -10 business days (depending on the account and issuer). You can then activate the credit card, and start using it for your business.