Business Credit Card Offers

Need a credit card for your business? Don’t just choose any credit card for your business transactions – do a quick and easy financial comparison of the business credit cards and review the benefits & perks your business can enjoy. Some also allow you to consolidate all of your purchases into one monthly statement thus helping you to keep track of all your expenditures. A business credit card is most useful when you have employees who frequently make business purchases. Plus you can set spending limits for each card and they will be able to get the things that they need without having to go through the chain of command for a purchase order.

What You Need to Know About Business Credit Card Offers

In many respects business credit cards work in the same way as standard personal credit cards, but they also have features and functions specifically designed for businesses. Whatever the size of your organisation, from small family businesses to large companies, there are credit cards to suit all types of business customers. Generally, your company needs to be registered with an Australian Business Number (ABN) in order to apply for a business credit card, and requires a good credit rating to get approved.

Unlike personal credit cards, most credit cards for businesses are provided to a named company rather than an individual. This means that all transactions made using the card are related to the company’s finances and are the responsibility of the company as a whole to repay. For small business owners this helps to separate personal and business finances, making managing the accounts much simpler.

Supplementary business credit cards can be distributed to selected employees, all linked to the same account, so the company can manage all its transaction and expenses together. Restrictions may be applied to each employee’s business credit card depending on their position within the company; setting credit limits and constraining what types of payments can be made.

For companies that want to use their credit cards for expenses such as business travel, rentals, retail purchases, and other outgoings, there are plenty of attractive rewards programs available. Points can be earned as employees spend on expenses then redeemed for business-related rewards. Credit cards designed for businesses also offer financial management features, which can help with expense tracking, budgetary reports and taxation. Other benefits available include insurance covers and concierge services.

When comparing and selecting a credit card, it is essential to examine the various rates and fees, as you would for any other type of credit card. The interest rate applied to purchases is an important consideration, especially if you don’t pay your balance in full each month. Many business credit cards attract a noticeably larger annual fee than other types of card, and it is also crucial to check out any penalty charges and other fees in the terms and conditions.

Four Tips for Using Business Credit Cards

Managing multiple cards: If you are the business owner and intend to distribute supplementary cards to your employees it is important to monitor how the cards are being used for expenses. Set out clear guidelines on what the credit card can and cannot be used for. Also try to limit the number of credit cards in circulation, reserving them for only the most trusted and responsible members of your staff.

Pay on time: As with a personal credit card, it’s always best to try to pay your balance in full each month within the interest free period. In this way you can avoid paying the interest and any penalty fees, keep your account in good order and save money for the company.

Make use of rewards programs: Many corporate credit cards provide access to rewards schemes. This can be a great way to earn and redeem points on expenses such as travel, retail purchases and other costs.

Keep organised: It’s essential to keep your company’s credit card account up-to-date and in good order, employing an accountant if necessary. Many of the features of the best business credit card offers are only available to companies and cardholders with a good credit rating, and a good credit score helps your company get higher credit limits and other benefits.

Common Features of Corporate Credit Cards

Credit limit: Typically a business credit card offers a higher credit limit than a personal card, allowing the company to cover expenses. Make sure the credit card offer you choose provides a suitable level of funds for the size of your organisation, but also one that you can afford to repay.

Purchase and cash advance rates: Compare the different rates available on each card. Also take note of the cash advance rate – this is usually slightly higher than the purchase rate with interest being applied immediately, so it is best to avoid using your business’s credit card for cash advances and ATM withdrawals where possible.

Interest free days: This is the period in which you can make repayments and avoid paying interest if the balance is cleared in full. It can be an important consideration if your company needs to make big purchases – if you can repay within this period you have effectively taken out a short-term, zero interest loan.

Balance transfers and other introductory offers: Banks often run introductory offers aimed at new customers including balance transfers, no annual fees or a reduced purchase rate for a promotional period. If you select a card with an introductory offer make sure it will really save money in the long run.