Compare business credit card offers with frequent flyer rewards points programs
What is a business frequent flyer card?
A business frequent flyer credit card is a credit card that will allow you to earn frequent flyer points for your business expenses. The credit card is linked to a frequent flyer points rewards programs.
What are the types of business frequent flyer cards?
How do business frequent flyer cards work?
Most businesses utilise some form of credit card. If it doesn’t give you added benefits such as frequent flyer miles when regular travelling is required, you may want to consider one that does. Business credit cards with frequent flyer points offers other complimentary benefits. These include:
- 24 concierge service
- purchase protection
- travel insurance
Choose from business different business credit cards with frequent flyer points and earn rewards when simply using your card for day to day purchases. Compare these credit cards to determine which one will provide optimum value. Look out for promotions where a generous amount of points are allocated either when:
- opening an account
- utilising the card for the first time or
- spending a certain amount
The promotions can be very rewarding, and new clients often earn enough points to pay for a return domestic flight.
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 cash flow 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, then a business credit card could be suitable for your business.
- Will this card benefit me even if I don’t fly often?These credit cards have specifically been designed to reward business individuals who fly often. It could, however, still benefit your business even if you do not fly often, because other credit cards could possibly provide better rewards and should be compared if you need one.
- 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 a free flight. 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 free flight? Free 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 $82.50 enrolment fee does apply to businesses who are not yet members.
- 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 it is therefore always wise to compare the overall value of each credit card for your business.
Pros and cons of business frequent flyer credit cards
Most businesses will experience periods of reduced cash flow, 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 cash flow.
- When cash flow is low, a business frequent flyer credit card can provide easy access to funds – but this should be the very last option. During periods of cash flow, you could use the credit card to buy the majority of business-related materials and the pay the balance immediately. You reap the many benefits of the rewards programmes your credit card is linked to.
- Business credit cards are a great way for established 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.
- 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.
- To keep spending under control, make sure that business credit cards are solely used for the purpose of the business and resist the temptations to use them for personal reasons.
- 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.
Frequently Asked Questions
- Can you earn frequent flyer points on tax payments? The majority of business credit card providers do not let you earn points on tax payments. To find out if your business credit card provider lets you earn points on tax payments, check what they consider an ‘eligible purchase’.
- Is it worth getting a frequent flyer credit card? Usually frequent flyer credit cards provide value back to the business if the balance is paid in full and on time. It’s worthwhile to calculate the value of the rewards you receive.
- Am I able to make personal purchases on a credit card that I use for business expenses? Yes, just be mindful that if you use the credit card for both business and personal reasons, you need to ensure that you only deduct the interest that accrues on the business expenses, which may be a headache around tax time.
- How many frequent flyer points do you need for a SYD-MEL return flight? If your card is linked to the Qantas frequent flyer program, then you need to redeem 8,000 points for a SYD-MEL flight. If your card is linked to the Velocity frequent flyer program, then you will need to redeem 6,900 points.
- Do the banks ever offer promotions? Yes, there are few credit card providers that occasionally offer promotions. Usually, these promotions run during specific periods and usually encompass a certain amount of points which will be loaded to your credit card either: when the account is opened, when the first purchase with the credit card is made and/or a specific amount of spending has been reached. Usually, the promotions are very rewarding and new clients often earn enough points to pay for a return domestic flight.
- Is there a difference between these credit cards and other business reward cards? Yes, generic business reward cards may reward the credit card holder in different ways rather than frequent flyer points, or do not offer the same amount of points for spending. The business credit cards with frequent flyer points are specifically designed to provide maximum value for regular travelers using air transport.
- What is the difference between these and other frequent flyer credit cards? There is a similarity between these cards although the business credit cards are specifically catered towards the needs of businesses, and therefore designed to feature many business-friendly attributes. Such as uncapped points and personalize cards with business names.