Business Credit Cards Comparison

Understand the basics of a business credit card and how it can benefit a business owner. Find out what to look for and how to use one so that you get the most from it.

Business credit cards have advantages for business owners such as tax deductions on spending and prestige benefits only available for those with an ABN (Australian Business Number). However, many business owners simply choose to apply for a frequent flyer credit card to maximise their points earning potential. A low interest credit card may also be suitable. If your company has an annual turnover of $2 million then a corporate credit card may work for you.

These form of company credit cards generally require the card owner or company to be in a good credit standing.

Business Credit Card Offer

The Commonwealth Bank Business Low Rate Credit Card is ideal for small business owners looking for a competitive interest rate with no annual fee. Now with 0%p.a. for 5 months on purchases*, it may be the ideal cash flow tool for your business.

• $0 annual fee
• 0% p.a. for 5 months on purchases,14.55% p.a. thereafter
• Cash Advance Rate of 14.55% p.a.
• Easy to apply for. ABN required.
• Complimentary transit accident insurance up to $250,000
• Free additional cardholder

Read the Commonwealth Bank Business Low Rate Credit Card terms and conditions.

Business Credit Card Comparison

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			Interest rate (p.a.)	Balance transfer rate (p.a.)	Annual fee	Cash advance rate (p.a.)
	Commonwealth Bank Small Business Credit Card – Low Rate	A business credit card with $0 annual fee and a low ongoing interest rate. Plus higher credit limit.	0% p.a. for 5 months (reverts to 14.55% p.a.)		$0 p.a.	14.55% p.a.
	NAB Qantas Business Card	Earn Qantas Frequent Flyer points and set different credit limits for each additional card holder.	4.99% p.a. for 12 months (reverts to 18.50% p.a.)		$144 p.a. ($12 per card monthly fee)	21.74% p.a.
	NAB Business Payments Card	A business credit card with $0 annual fee. Allows for multiple cards with individual owners with different spend limits.	15.50% p.a.		$0 p.a.	15.50% p.a.
	Westpac Altitude Business Gold Credit Card	Receive 20000 Altitude reward points when your card is first used. Complimentary travel insurance and purchase cover.	19.99% p.a.	3.99% p.a. for 6 months	$0 p.a. annual fee for the first year ($150 p.a. thereafter)	21.49% p.a.
	ANZ Business One Visa – Rewards	Be rewarded for spending on everyday business purchases. Earn 1.00 Reward Point for every $1 you spend on eligible purchases with uncapped points earning.	19.50% p.a.		$150 p.a.	20.34% p.a.
	Commonwealth Bank Small Business Credit Card – Interest Free Days	A low annual fee card with a low rate on purchases, plus complimentary international travel insurance.	0% p.a. for 5 months (reverts to 17.57% p.a.)		$60 p.a.	17.57% p.a.
	ANZ Business One Visa – Low Rate	Enjoy a low interest rate on purchases and complimentary Company Liability Insurance and Cardholder Transit Accident Insurance.	13.26% p.a.		$150 p.a. (which is waived if annual spend is greater than $20,000)	15.41% p.a.
	American Express Gold Business Card	$1 spent equal 1 Membership Rewards point. No cap or expiry of points whilst your account is current.			$169 p.a.
	ANZ Business One Visa – Interest Free Days	Up to 55 days interest free on purchases as well as complimentary Company Liability Insurance and Cardholder Transit Accident Insurance.	17.99% p.a.		$150 p.a.	19.24% p.a.
	American Express Platinum Business Card	Receive 45,000 bonus points. Earn up to 2 membership points for every dollar spent.			$1,500 p.a.
	American Express Velocity Business Card	A truly dedicated business rewards credit card. Download all your card expenses in a format readable by Quicken, MYOB, Microsoft Excel and more.			$249 p.a.

Business Credit Card Comparisons

• Business Credit Cards with Frequent Flyer Points – find out which business credit cards allow you to earn frequent flyer points on your business purchases and expenses.
• Business Credit Cards with Rewards Programs
• Charge Cards

Table of Contents: Guide to Business Credit Cards

• What is a business credit card?
• 5 Important things to know about small business credit cards
• How a business credit card differs from a personal credit card
• Business credit card fees & charges
• What is there to choose between them?
• Finding the best business credit card
• Corporate vs. Business card cards
• Getting started with business credit cards
• Applying for a business credit card

What is a business credit card?

If you understand the concept of a personal credit card, then you’re a good way to understanding what a business credit card is all about. Business credit cards work on the same principle as personal credit cards, allowing the cardholder to purchase goods or services physically at a merchant location, or remotely over the telephone or via the Internet.

However, there are crucial differences between a business credit card and one you would use for your personal purchasing needs, and for an ongoing business it would be inappropriate to use a personal credit card to fund things. Having said that, there are many well-known and super-successful firms that were originally financed by the credit available on the entrepreneur’s personal piece of plastic.

Once a company is established, though, there are great benefits in switching to a business credit card, for which you will need an Australian Business Number. You can apply for one of these online from the appropriate government website.

What banks offer a Business Credit Card?

• ANZ Business Credit Cards
• NAB Business Credit Cards
• Bankwest Business Credit Cards

5 Important Things To Know About Small Business Credit Cards

If you have been thinking about getting small business credit cards, and have some questions about them, you can read this article to get more information. When used correctly, small business credit cards could really help you get your business started properly.

Small business credit cards can really help get a business started and up on its feet. These cards have been designed with special features to help out smaller owners that just need a little bit of extra financial help getting started.

Here are 5 of the most important things you should know about small business credit cards, so that you can get the most benefits out of them.

1. Know what options you have for your payment plan.

   You should know ahead of time what your minimum monthly payment will be so consult the terms and conditions of the credit card first. Fortunately, most of these credit cards have low interest rates so you can carry the debt a little longer if need be. Many of these cards also come with additional benefits, and you can find out more of these by reading the fine print as well.

2. Pick the card that suits your business the best.

   New entrepreneurs are usually facing financial risks when they first start with a new business. These cards are designed to meet these needs. You will be able to figure out which card is best for you by determining where you can get other money, how you will be able to pay the balance off every month and examining your business monthly expenses.

3. Your credit score is important.

   You will have better access to loans if your credit rating is good. You will also have more financial options available to you, such as the ability to open new accounts for credit cards.

4. Be wary of introductory offers.

   If the small business credit cards you are considering offer low interest rates, but only for a short period of time, then you should be aware that once this time period has ended you will have to start paying the standard interest-rate. This may be detrimental to your business, and you may want to look instead at other credit cards that offer long-term low interest rates.

5. Organization counts.

   Most small business owners have a separate account for their business and personal use. This makes it easier to keep track of money in and money out, and makes finances more easily organized. It also helps if you have an accountant that is keeping track of your business books.

Small business credit cards can really help a business that is first starting out, but they can also be quite damaging if they are not used correctly. Make sure you understand everything about your card before making an application so that you can get all of the benefits from it.

Business credit card fees & charges

In 2002 there were many changes made to the credit card system in Australia, in a bid by the Reserve Bank of Australia to improve the efficiency of card services. One of the major changes that took place, and the one having the biggest effect on consumers was the reform to the charging of credit card fees.

It is not new news that businesses have to pay an extra fee whenever a customer pays for something using their credit card. However, under the old rules companies were not allowed to pass on these charges to their customers. What some businesses did in order to recoup some of these costs was to do it in a less direct fashion, for example charging a higher price for their goods or services.

However at the very beginning of 2003 this rule was changed, and the restriction on businesses was lifted.

Now business owners are able to pass on the fee they have to pay to their customers directly, and some do, however some still choose to recoup the charge by having slightly higher prices.

The customer now also has a choice. They can pay the extra fee by paying for goods on their credit card, or they can avoid paying the added credit card fees, by paying for the goods in cash.

Although businesses are now allowed to charge the consumer for these added fees, they also have some obligations when adding these charges.

Some of the obligations are as follows:

Disclosure – Customers must be made aware of the extra fee they are to be charged, and this can be done either by displaying clear messages on price tags, or by a member of staff, who must discuss the charge with the customer before any payment is made.

Clear fee structure – Customers must be told exactly how much extra they will be paying in fees before any money has changed hands or contracts have been finalised.

Honesty – Customers must not be deceived into thinking the extra fees are essential.

Strict legal terms – Businesses must not make any deals or collude in any way about how much they will charge for extra credit card fees. Any such understanding or deal is banned by the Trade Practices Act, and any instances of such activities will be dealt with in a serious fashion, and carry heavy penalties.

How a business credit card differs from a personal credit card

These are the main differences you can expect to find between a business credit card and a personal credit card:

• Business credit cards are issued to the company not to an individual. In this way, the company named on the card is responsible for any debts that accrue on it, rather than the individual who has it in their possession and uses it for business purchases.
• These cards may have restrictions on them, aside from any credit limit that may apply to the card. This may mean that they can only be used for certain purchases, or perhaps that cash withdrawals from ATMs are not allowed.
• A number of cards can be issued on the account, and the credit limits and restrictions on each one can be geared to the individual employee who has use of it, so that junior employees will not have the spending power of more senior staff.
• The cards come with management reporting features such as monthly itemised purchase listings that allow easier tracking of expenditure for budgetary and tax purposes
• Business credit cards may also offer complimentary features such as general and business-specific insurances, and banking discounts
• A common business credit card functions in the same way as a personal credit card does. You can use it to buy things offline, online, withdraw money from an ATM and pay by phone.

What is there to choose between them?

As this might be the main means by which a company makes its purchases, the key factor will most likely be the acceptance of the business credit card. In other words, a card that is rejected because the merchant does not accept it is going to be a problem. This is no different to the situation with personal credit cards, where a card carrying the Visa or MasterCard logo is more widely accepted than one with the American Express marque on it. Of course, Amex business cards can have their own perks, such as better rewards programs, extra features and greater kudos. For this reason, many business owners may opt to carry an Amex and one of the others to cover all the bases.

Aside from this, the obvious feature to check is the interest rate, or APR. This is especially relevant if you are going to be spending a lot on your card and will not be paying it off in full each month. Remember also to check the annual fees and transaction fees involved, plus any penalty charges and in what circumstances they are applied. It is important that you check the terms and conditions of any credit card you carry, but where a business credit card is concerned, it simply must be done. Check also to see how easy it is to access your account online, the kind of fraud protection measures that apply, and if there is a zero liability guarantee against fraudulent use of the account. Find out also what sort of insurances are included with the card, and how does the customer support stand up to scrutiny?

Finding the best business credit card

It’s almost certain that whichever bank you do your business banking with, it will be able to offer you a business credit card. This may be the same bank you have banked with as a personal customer for many years, and as your business has developed it just seemed natural to open your business account in the same place. Whilst this may seem the easiest option, it may not always be the best for your business. Even if you don’t choose to take your business elsewhere, there is certainly no harm in checking out what else is available on the market. This is simply done by checking a reputable credit card comparison website. Armed with the facts, you can always go to your own bank and haggle with them over what they are prepared to offer on their card, compared to what you know is being offered on the other cards. Most banks are happy to talk terms and conditions if it means they retain your business.

Within the various offerings you may discover, there will be two main types of business credit card:

Credit card

This is what you would probably expect a business credit card to be, and it operates as your average personal credit card does. You build up a balance over the month and your statement then requires that you pay off a minimum amount at the end of the month. Whatever you don’t pay off is charged at a predetermined rate of interest. This is the better option for businesses that need flexibility due to ebbs and flows in cash reserves, where it may not be financially possible to clear the balance in full each month.

Charge card

Essentially, these provide a short-term (monthly) loan to a business on any purchases they load on the card, as they require the full amount to be completely paid off each month to avoid the imposition of hefty fees. These business credit cards are better suited to companies that are financially stable enough to always be able to clear their balance. American Express and Diners Club are the best-known of the charge cards.

Advantages of a business credit card

There are a lot of benefits associated with small business cards for both new and established companies . Here are some of the main reasons why you should look at getting a credit card for your company.

• The main benefit of a business credit card also applies to carrying a personal credit card: namely, that you have a ready source of funding that does not rely on you carrying around large amounts of cash, which is impractical and potentially a security risk.
• They also provide the opportunity to make instant approved purchases in person, online or over the telephone. You’ll have more convenience when you have a credit card for business purchases since you will be able to place orders by phone or on the Internet. You can get extra cards for employees that are going to be making purchases and you don’t have to worry about writing checks or having large cash amounts available in the office.
• Issuing credit cards is also usually cheaper than writing a cheque, which in this day and age looks positively antiquated and does not provide the instant assurance that the payment has been approved.
• Business credit cards allow for a separation of personal and business expenses, which makes things far easier for tax purposes and to keep track of business expenditure. If you’re a business owner, you’ll probably already understand the necessity of keeping accurate financial records. Many smaller businesses tend to have a single account for both personal and business use, which can make for a nightmare at tax time separating the two out. Business credit cards can give you the ability to separate out your personal spending from your business spending, which means your accountant won’t need to spend so many billable hours sorting through your paperwork.
• Selected employees can be issued with their own card on the account, empowering them to make necessary business purchases, and to charge other business expenses to the card.
• Employee cards can have separate credit limits and controls placed on them, in accordance with the position of the individual within the company. Most business credit cards will offer you the ability to add extra cardholders to the account. This can help control employee expenses and allow you to monitor the spending patterns of your staff.
• Business credit cards also serve the hugely important purpose of building up your business credit rating.
• Clearer record keeping. Using business credit cards for all your purchases, expenses and other transactions can give you a clear, easy way to keep your expenditure in order. You’re able to see all your transactions clearly on your monthly statement, although several lenders also offer the ability to download your statements directly into your book-keeping program for even easier reconciliation.
• If you shop around, you may find it’s possible to benefit from up to 45 days interest free on some credit card accounts. This can mean paying creditors using business credit cards at the beginning of the month and paying off your card at the end of the month when your accounts are received. This can help improve business cash flow by offering short term credit when you need it, and it keeps your creditors happy at the same time.
• If you use business credit cards regularly, or if you have additional cardholders all using the account for expenses, it’s easy to accumulate rewards points very quickly. If your card offers a Rewards Program, it’s possible to benefit from some great rewards. For example, if you need to travel as part of your business, you might convert some of your points to Frequent Flyer miles, or you might reward employees with gift cards or other rewards.
• If the credit card comes with includes insurance then you might be able to benefit from this because nobody in your company needs to run around with large cash amounts anymore. Plus these cards also keep business from pleasure quite easily and are often cheaper to run than issuing cheques.
• Business credit cards often give a higher credit limit than personal cards, which makes them ideal for a company that has high business expenses.
• Having a business card keeps your company finances as a separate entity. It is best to keep personal finances and business finances separated at all times so that there is no confusion when tax time rolls around.

When you are applying for or comparing a credit card that is meant for business purposes, look at the interest and fees on the card and find out if there is a rewards program on it. Ensure you do a business credit card comparison online, to find one with the best features with a low rate if you have a lot of business expenses and pick the best card suitable for your business.

Corporate vs. Business card cards

These two types of card are not the same, and it’s is important to know how they differ so you can decide which one will best suit your venture.

Corporate credit cards

Corporate credit cards are designed for larger firms and corporations, and the features of these cards can be tailored to meet the needs of the specific business. This will involve the business owner and executive staff having a face-to-face meeting with a representative of the card provider to hammer out the details. For this reason, the business credit card you will see advertised by your bank or on a comparison site will not be a corporate credit card. To find out about this service will require that you make a personal enquiry at the bank or card company of your choice.

Small Business Credit Cards

This is the business credit card you will see advertised, and this is the popular choice with the small to medium sized business, or for the sole proprietor or business person working from home. Applications for a card of this sort are done in the same way as you would apply for a personal credit card. The easiest and fastest way to do this is with an online application. It goes without saying that a good credit rating will be needed for an approval.

Using a business credit card wisely

As with any credit card, a business credit card is only as good as the use it’s put to. Here are a few tips to bear in mind:

Limit how many cards you have - The more cards you have in circulation amongst your staff, the higher the risk of debt building up. Keep the number of cards as low as you can to guard against this.

Use your interest-free period – This is the period in which you are not charged interest from the time the purchase is made until the day the balance is due. If you take advantage of this and then pay your bill off in full, you will have effectively enjoyed an interest-free short-term loan, which is something you can do every month with careful planning.

Don’t use your business credit card as a debit card – This means that you should not use your card to withdraw cash from ATMs, or for any other transaction that is deemed a cash advance. Cash advance transactions do not enjoy an interest-free period and are charged interest from the moment they happen, and the applicable interest rate is usually higher than the purchase rate.

Pay on time – The best bet is to pay in full on time to avoid any interest charges. Failing that, at least the minimum payment must be met, and it must reach the card company before the due date or a penalty will be charged.

How do I toss up different business cards when comparing?

As businesses will be likely to make a wide range of purchases, including foreign imports, credit card acceptance plays a large factor in credit card comparison. On the surface, the Business Accelerator card has more generous and appealing features, yet American Express cards have limited acceptance within Australia in relation to Visa and MasterCard.

When comparing business rewards however, the AmEx ‘Membership Rewards’ program is arguably the most competitive rewards program available to Australia consumers.

ABN’s and Business Credit Cards

Most business owners are short on time. Let’s face it, when it comes to doing a credit card comparison you probably have other things to worry about then running from lender to lender to find the best deal. The thing is that those entrepreneurs who do spend time to look into their options often save money opposed to their competitor who is too slack to research the market.

Most banks and lenders offer their customers a business credit card. By doing some research online you’ll soon see which of the offers apply to your needs. Once you have a short list of applicable business credit cards it’s time to drill down into the meat of things.

Getting Started With Business Credit Cards

If you are looking for a loan for your small business financing, consider a credit card. Many business owners use these cards because resources need to be obtained first and then paid for at a later date. The nice thing about using a credit card is there is a grace period where no interest is added. This means that as long as you get the funds back within this designated time, you will have no interest to pay at all.

Applying for a business credit card

Owning a business credit card means taking responsibility for the card itself and here are some of the considerations you must keep in mind when you apply for or compare business credit cards.

When you’re looking at the different credit cards that are available you need to put aside what you would want in a card for your personal day-to-day life and only think of your business. As an individual you may be able to make regular payments on your card balances every month and not have to carry a balance over. Your business may not be able to do this especially if you are using it to finance purchases on a large scale when the business is starting. In this case you would look for a card with a low interest for purchases, and an extended grace period.

You should also take a look at that rewards program that is being offered on each card, especially if there are future business trips scheduled. Getting a credit card that offers travel rewards or complimentary travel insurance can save your business a lot of money down the road.

There are a lot of benefits associated with small business cards for both new and established companies . Here are some of the main reasons why you should look at getting a credit card for your company..

1. Business credit cards often give a higher credit limit than personal cards, which makes them ideal for a company that has high business expenses.
2. Having a business card keeps your company finances as a separate entity. It is best to keep personal finances and business finances separated at all times so that there is no confusion when tax time rolls around.
3. You’ll have more convenience when you have a credit card for business purchases since you will be able to place orders by phone or on the Internet. You can get extra cards for employees that are going to be making purchases and you don’t have to worry about writing checks or having large cash amounts available in the office.

When you are applying for or comparing a credit card that is meant for business purposes, look at the interest and fees on the card and find out if there is a rewards program on it. Ensure you do a business credit card comparison online, to find one with the best features with a low rate if you have a lot of business expenses and pick the best card suitable for your business.

Establishing a credit history

A new business that is starting out will have no credit history attached to it in most cases. A credit card is the best way to establish a positive credit history so that you can apply for more credit quickly as your business expands. Banks and other financial institutions will start taking your business seriously once they see that you have established good credit and are a good risk.

To keep your credit score in line, you must always make sure that payments are made on time every month. While you are first starting out, you may have situations arise and only be able to make the minimum payment from time to time. This is fine as long as that amount is paid and is on time. Making a minimum payment ensures that your credit score remains healthy.

Record-keeping

Any business owner can tell you that one of the worst things about owning a new business is the administration work that goes along with it. It can really be a nightmare trying to keep all the paperwork organized, especially if the business is new and no system has been put into place yet. A credit card can keep records simply and efficiently.

Every time a statement arrives, the paperwork is basically complete. If you use the credit card primarily for your business purchases and expenditures, all your records are there.

You can also apply for extra cards for your employees so that all of the business is attached to one account. At the end of every month, it is a simple matter of going through the credit card statement and balancing the books. The hardest part about record-keeping in a business is looking through scattered paperwork or where balances are kept without order or a system.

If you have been thinking about starting a business but have been putting it off due to finances, try applying for a business credit card. It may just be the answer you are looking for to get your business off the ground and started. A lot of people begin this way and then continue to use their credit card because it is the easiest way to keep track of company finances and employee spending.

Two strong contenders for business credit cards.

The following two cards have their own unique attributes if you are in the market for a credit card for your business. Start your business credit card comparison with the American Express Business Accelerator Card and the Citibank ‘CitiBusiness’ Card.

Extend Your Business’ Purchasing Power With A Business Card

Every business knows though that without capital growth is nearly impossible. In business, capital is often tied up in operational costs and asset procurement leaving very little for growth. As they say, you have to spend money to make money

Yet, if you have no money to spend, how then can you make more to spend more? It’s the oldest catch-22 in business.

On Business Debit Cards

Debit cards are a very prudent way to do business. Essentially they operate on one very simple principle- they do not allow your business to spend more than it can afford.

Because business debit cards’ buying power are determined by the balance of a business’s checking account, theoretically, the limit to the buying power of the credit card is the limit of the capital available to the business at the time. This is a very responsible way to conduct business as well as your personal financial life.

Though this keeps a business’s record books clear of debt, it severely limits the buying power of a business to the cash available to them at any time. It can take time, too much time, to save enough cash for a business to make a formidable investment in growth.

How then can a business gain access to more capital? Business credit cards is certainly a solution for all entrepreneurs to consider.