What is a business credit card? 

Business credit cards allow a business owner or one of their nominated staff to purchase items on credit. The balance of this credit gets settled at the end of the statement period, which may vary from one credit product to the next.  

Like personal credit cards, these products enable a company to make business purchases without needing cash available at the time. However, a credit card for company use must generally only make business-related purchases.  

So long as the business collects owed revenue before the end of the statement period, or has enough cash in its expenses account, it may successfully pay off the credit without incurring interest. Various fees and interest rates apply to different products, so businesses must check the terms and conditions for each before applying.  

A business credit card is distinct from an in-store credit account or a debit card for business. An in-store credit account allows purchases on credit with a specific retailer. A debit card for business requires cash in the bank at the time of purchase and one account can have multiple linked cards. You can have one personal business card, then others attached to the account for staff.  

What do businesses use credit cards for? 

There are some fundamental reasons why a business may choose to use company credit cards. 

1. It allows a business to make purchases based on money due. Sometimes a company doesn’t have the cash in the bank to pay outstanding outgoings, especially if they are waiting on invoices due to them. A company credit card allows them to cover those outgoings immediately – and then pay off the balance when the revenue comes through Accounts Receivables.  
2. Credit cards can have benefits and loyalty programs. As with personal credit cards, several corporate products have associated card benefits and loyalty programs they offer to clients. A business may seek to take advantage of these perks on top of using the credit to cover outgoings on time.  
3. Ease of use. For many businesses issuing select staff with a credit card for business use saves time and reduces manual workload for those making the purchase and those in the finance team who would otherwise be creating purchase order numbers, receiving invoices and making payments. 

Why is it important to get a good deal on a business credit card? 

There are various credit card products available to Australian businesses, and the terms and conditions of each can vary significantly. The best credit card deals depend on the requirements of the company. If a company fails to do its due diligence on credit products, it may be subject to costly interest rates, fees and contract stipulations.  

There is no one-size-fits-all approach with company credit cards – each enterprise must compare business credit cards and find the product that best suits them and their specific needs.  

A credit card with the lowest interest rate may appeal to some, whereas others may prioritise business credit cards offering rewards, which typically come with higher ongoing rates and fees. For some companies, an Amex for business might represent the ideal choice due to its international prevalence, or perhaps a Bankwest business credit card if that is the most convenient bank for your head office. It’s a matter of your priorities.  

For those seeking instant approval for business credit cards, you may need to commence more specific discussions with your bank or lender.    

What are the best options for business credit cards in Australia? 

As stated, no one product suits every business’s needs. There is no best credit card for businesses. You should always do the appropriate due diligence to locate the product that is the best fit for your business needs. Small business credit cards may not be suitable for larger enterprises.  

That being said, the following products represent award-winning corporation credit card options you may wish to consider, as nominated by the comparison site: Mozo. Consult your financial advisors before you apply for a business credit card. 

For more information, specifically on Big Four Bank products, such as an ANZ business credit card or CBA business credit card – speak to the institutions directly.