The best credit card for your small business

Business banking often needs to be kept separate from your own personal finances. If you’re starting your own business, you may need to set up:

•    A separate business bank account.
•    A business loan or a grant.
•    A business credit card.

Business credit cards operate similar to personal credit cards. A business credit card lets you manage your day to day business expenses and pay any bills and suppliers. Once a month, you can review your credit statement and pay off your charges. The sooner you pay off the amount on your credit card, the less interest you’ll pay. You might even benefit from the rewards points programs attached to your new business credit card.

The benefits of a business credit card

When properly managed, credit cards can simplify some of the finances business owner’s handle. Some of the benefits of using a business credit card include:

• Reduces the need for petty cash: With a credit card, you can easily make purchases for your business without having to use petty cash. You can use the credit card to buy office supplies, food and drinks for Friday afternoon nibbles, marketing collateral and to pay any bills, from utilities to suppliers. Reconciling a credit card statement is much simpler than handling petty cash.
• Track employee spending: You can often get more than one credit card attached to a business account. With credit cards, it’s easy to track what your employees are paying for. Just simply check the online statements. Get your employees to keep a receipt and a record of what they use the credit card for to make it easier to reconcile the credit card statement at the end of each month.
• Rewards programs: Similar to personal credit cards, most business credit cards are linked with a rewards program, where you earn points for every dollar you spend. Once you have accumulated enough points, you can trade the points for certain ‘rewards’, such as cheaper flights both domestically and internationally.

What makes a business credit card the best?

When you start comparing credit cards, there are a few factors you need to consider. But to truly find the best credit card for you, what should you be looking at?

• Low or no fees: Ideally, you’ll want a credit card with low or no account fees, as over time, these fees can eat away at your credit, even if you’re not using the card regularly. If you plan on using your credit card for overseas purchases, make sure you know what the currency conversion fee will cost you.
• Interest: You’ll pay interest on each purchase you make with the credit card, unless you pay off the charge within the interest-free period¬–usually up to 5530 days.  While a low interest rate is always a plus, it’s not the only thing you should consider.
• Credit limit: Your credit limit will determine how much you can borrow against your name or your business entity.

The latest business credit cards

To help you find the credit card that suits your business, click through to our InfoChoice comparison tables to view our latest business credit cards or view below.

Once you’ve selected a business credit card, click the green ‘Go to site’ button. This will take you directly to the application on the financial institution’s website.

Learn more about how to choose a credit card that’s right for your business.