BUSINESS CREDIT CARDS INFORMATION

Please see information below on Business Credit Cards.

Business Cards
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Business Credit Cards

Business credit cards are essential to most businesses, large or small. Find out the basics on business credit cards below – for other card types go to the main Info Library menu.

What are Business Credit Cards?

Business credit cards are credit cards specially designed for businesses. There are different types, mainly divided into:

Small business cards
Corporate business cards

Regardless of the size of a business, it is wise to organize finances with a dedicated card. Unlike a credit card issued to an individual, a business credit card means that the company is responsible for the debt, not the person who uses the card. Some business credit cards have restrictions on them, and may only be used for certain purchases.

What are the Main Features of a Business Credit Card?

Business cards are essential for managing expenses and cash flow for your business, but most of the standard features will be there:

Credit limit (suited to the business)
Balance transfer rate
Standard interest rate
Annual fee
Interest free period

It may carry extra features for security:

Fraud protection
Purchase cover
Card replacement (emergency)

Most business credit cards will carry beneficial features, like reward programs, cash back schemes and even insurance or travel assistance. They may also offer expense management, such as monthly itemized purchases.

Who Can Apply?

To apply for a business credit card, you will usually need to fulfill the following criteria:

Minimum age 18
Permanent Australian resident
Good credit rating
Minimum income ($35,000 is normal)

You may need to prove your income with details of your employer or of your accountant if you are self-employed. In addition you may need to provide details of your main expenses and income before and after tax.

Depending on the size of your business you may have to prove that your company is also in a good credit standing. To receive certain benefits you may have to prove an ABN (Australian Business Number). Start preparing the relevant forms and information in advance!

What are the Benefits?

Most businesses cannot function without business credit cards. Large corporations use them to control employee expenses, and can monitor what the employee uses the card for – with itemized purchase listings this is straightforward.

Smaller and medium-size businesses can also benefit from business credit cards, to manage cash flow and the business efficiently. If you are a one-man operation (such as a self-employed author), you may not see the benefits of using a business credit card, because you may not have very many business expenses.