Dedicated business credit cards offer many tools personal credit cards don’t have. They can save you money, help track expenses and simplify taxes.
If your business has an Australian Business Number (ABN), using a business credit card offers various benefits over personal cards, although there are also added costs. We would never advise you to do this, but many a startup was funded with business cards alone.
For starters, a business credit card requires you to have a very high credit score, much higher than personal credit cards. Typically, these cards come with a much higher credit limit than personal credit cards, but you can expect the annual fee and the interest rate to be larger as well. On the other hand, a business credit card will allow you to separate personal and business expenses and typically comes with more tracking and exporting features that make bookkeeping much easier and save hours of work at tax time. Such cards are particularly useful if you have staff, as you can issue purchasing cards to several people and set individual spending limits and restrict purchases to specific types of transactions to help track everyone’s expenses in a more streamlined way. In addition, many come with the same perks as personal cards when it comes to reward programs or with frequent flyer points. The insurance policies covering international travel, flight cancellations, loss and theft of purchased goods, etc. that often come with these cards can justify the higher interest rates.
Just like with personal cards, some of the cards listed here offer introductory offers of lower interest rates and reduced or waived annual fees, as well as bonus sign-up points.