If you are a business owner who wants to manage cash flow, keep track of the expenses, separate business expenses, earn rewards and have higher purchasing power, you may apply for a business credit card.
What Is a Business Credit Card?
Business credit cards are specially designed for business-owners and used to make business purchases. Although they usually come up with higher interest rates, they can be helpful when your sales do not meet your expectations. Also, they generally have higher credit limits. There are two main types of business credit cards:
- Low rate business credit cards: If you want to start a business, you may want to choose that type of business credit cards since they have low-interest rate, more interest-free days and no annual fee.
- Rewards business credit cards: Since you earn points as you spend, the higher spending power you have, the more amount of rewards you will get including discounts, free bookings, etc.
Top 5 Business Cards in Australia
- American Express Business Explorer Credit Card: Once you get approved, you earn bonus points. Then, you can keep earning bonus points as you spend. For example, if you spend $100,000 each year, you can earn 50,000 bonus points. You also need to pay off $395 annual fee but you can get the tax deducted.
- NAB Rewards Business Signature Card: Contains exclusive discounts and numerous benefits and allows you to earn bonus points as you spend and you can use that points for many purposes. You need to pay off $175 annual fee.
- NAB Low Rate Business Credit Card: Allows you to save money on credit card costs since it contains no annual fee and no interest rate during the first year.
- Bendigo Bank Qantas Business Master Card: If you meet the eligibility criteria (being 18 years or older, being a permanent resident of Australia, not being insolvent or bankrupt), you can apply for that business credit card and start earning rewards for your purchases. For each Dollar you spend, you earn 0.6 Qantas points. You will be charged $149 annual fee and 19.99% p.a interest rate but you will get 55 interest-free days.
- Chase Ink Business Preferred: Allows you to earn $3 for for every Dollar you spent for the first $150,000. Also, since it does not contain any foreign transaction fees, you can travel as much as you want and save on costs.
Business Credit Card Applications
You need to fill out an application form which contains:
- Legal name of your business
- Tax identification number (If you are a freelancer, you should enter your own social security number)
- Type of your business
- Type of your industry
- Your role in the business
- Business address or phone number
- The number of years you’ve been in business
- The number of employees
- Business revenue
- Monthly spend