Business credit cards that’ll take you beyond the 9-5

What are business credit cards and how do they work?

A business credit card gives you a way to manage your business spending and offer expense management tools, rewards and other business-related perks. In Australia, business owners and sole traders can choose from a range of business credit cards and charge cards.

• With a business credit card, you can choose to pay off spending over a few months or more – with interest charges.
• With a business charge card, you repay the whole balance by the due date on each statement (e.g. once a month).

Both types of business cards let you pay for what you need with credit, then repay the account over time. So, you can keep the lights on (and your internet connection) while you chase up invoices, grow your business or deal with other costs.

They also offer more specialised features for business owners. For example cards for employees, data feeds for MYOB, Xero or other accounting software and statements that show GST or other key accounting details.

• Finder Awards Business Credit Card Methodology

  To determine the winners of the Finder Credit Card Awards 2024, our team of expert analysts use an objective rating system to determine our award winners.

  • We include all credit cards in our database – which contains every business and personal credit card we can find online.
  • We compare each card's credentials with all other cards which are live in the market each month, and combine those scores over the full 12 months to calculate a final score.
  • We exclude any credit cards that are only available to a certain subset of customers based on bank patronage or location.

  We've included the methodology details for each business credit card category here:

  Business Rewards Credit Card - Methodology

  Selection criteria

  • Must be a business credit card
  • The card must award a rewards program but NOT direct Qantas or Virgin points
  • Card must not require loans or specific amounts of savings as eligibility criteria
  • Rewards gift cards must be usable in multiple retail outlets
  • Card must offer gift card choice – points earned at the standard rate on general purchases must be exchangeable for gift cards in more than one retailer at the same rate

  Presumptions

  • Tie breakers are ranked by the lowest interest rate

  Weighting

  • Annual fee 25%
  • Purchase interest rate 5%
  • Points cap 5%
  • Sign-up and minimum spend bonus points 20%
  • Maximum international transaction fee 5%
  • Points per $1 spent 30%
  • Spend required for $100 voucher 10%

  Business Frequent Flyer Credit Card - Methodology

  Selection criteria

  • Must directly earn frequent flyer points with Qantas or Velocity
  • Must be a business card
  • Card must not require loans or specific amounts of savings as eligibility criteria

  Presumptions

  • Tie breakers are ranked by the lowest interest rate

  Weighting

  • Annual fee 25%
  • Purchase interest rate 2.5%
  • Soft points cap 5%
  • Sign-up and minimum spend bonus points 25%
  • Maximum international transaction fee 5%
  • Basic earn rate (points per dollar) 27.5%
  • Lounge passes 10%

  Low Rate Business Credit Card - Methodology

  Selection criteria

  • Must be a business credit card
  • Cards must not require loans or specific amounts of savings as eligibility criteria
  • Monthly-fee, no-interest cards excluded

  Presumptions

  • Tie breakers are ranked by the lowest interest rate

  Weighting

  • Annual fee 20%
  • Purchase interest rate 70%
  • Interest-free days 10%

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Pros and cons of business credit cards

How to compare business credit cards

Check the accounting and reporting features

A business credit card makes it easy to manage finances when it has features that fit with your accounting processes. Some of the key features to look for include:

• Data feeds for the accounting software your business uses, keeping in mind that not all software accepts feeds from all cards
• Detailed statement breakdowns and custom reports
• Separate GST details for transactions
• Employee card spending limits and controls
• Easy imports for Microsoft Excel

Compare other business banking tools

Every card is different, but some valuable business features include:

• Additional cards for employees. Some business cards charge a separate annual fee for additional cards, while others offer 1-99 or more cards at no extra cost. For example, Amex cards for small businesses typically offer $0 employee card fees, while NAB business credit cards and Westpac BusinessChoice cards charge a fee per card.
• Real-time management. If you want to make changes on the go, look for a card that lets you see transactions as they happen, block and add new cards instantly or update other features without long processing times.
• Security. Business credit cards typically offer unauthorised transaction cover and 24/7 fraud-monitoring.
• Spending limits. If you get a credit card, you can only spend up to the approved limit. With a charge card, there is no pre-set spending limit but lenders may consider your account history and other factors if your spending patterns change.

Choose the rewards and perks you want

Qantas or Velocity frequent flyer points

Business credit cards that earn Qantas Points or Velocity Points directly typically offer between 0.66 and 1 point per $1 spent. Similar to regular frequent flyer credit cards, you can earn bonus points for eligible spending, such as booking a flight with the airline.

There are also some cards linked to the Qantas Business Rewards program, which lets you pool points and transfer them to any personal Qantas Frequent Flyer account. The program also offers flight discounts and other business perks.

Bonus point offers

A new business credit card can give you up to 350,000 bonus points when you meet the spend criteria. It's similar to personal credit cards, so you'll usually have to spend a set amount in the first few months (e.g. $8,000 in 3 months).

These bonus points can be worth hundreds or even thousands of dollars of value. For example, 150,000 bonus Qantas Points is enough for a one-way business class flight from Sydney to London (144,600 points plus fees and taxes).

Other frequent flyer programs and flexible rewards

Credit card reward programs including American Express Membership Rewards, ANZ Rewards and NAB Rewards offer point transfers to partnered programs. This often includes Singapore Airlines KrisFlyer, Cathay Pacific Asia Miles and Air New Zealand Airpoints.

They also offer rewards including gift cards, statement credits and hotel bookings. And standard earn rates range from 0.5 to 2.25 points per $1 spent on business credit cards.

Want to know how much your points are worth in dollars? Check out Finder's points calculator.

Travel perks

Similar to personal credit cards, complimentary travel insurance is a popular benefit. On a business credit card, the cover may only be for business travel or limited to transit accident insurance – these details are included in card reviews and the insurance T&Cs.

Most frequent flyer business credit cards also offer airport lounge access. If you fly with a few airlines, cards that offer flexible lounge access through a network like Priority Pass or American Express lounges may offer more value than those linked to Qantas or Virgin Australia. Some premium business credit cards also offer other travel perks. For example, the American Express Platinum Business Card offers higher status with partnered hotel loyalty programs and complimentary Accor Plus membership.

Business-related perks

These cards can offer some great extras for your business, such as dedicated account managers and concierges, free seminars and advice, subscription offers and discounts.

Weigh up rates and fees

• Annual fees. Most business credit cards in Australia charge an annual fee, which typically ranges from $40 to $1,750.
• Additional cardholder fees. This cost can lower or the same as the business credit card's annual fee. If you want to get cards for employees, look for a business credit card that doesn't charge an additional cardholder fee.
• Interest rates. Interest rates for purchases typically range from 9.99% p.a. to 23.99% p.a. and some cards don't offer interest-free days.
• Foreign transaction fees. This fee is typically 2-3% of each transaction that's processed overseas or online in a foreign currency.

Beware of the foreign transaction fees charged by other providers. These costs accumulate exponentially for businesses that frequently travel overseas or have subscriptions or other costs charged in foreign currencies. To avoid unnecessary fees and free up cash flow, it's essential to choose a business credit card or expense management platform with no FX fees.

Ryan Edwards-Pritchard
Founder and CEO of Cape

Personal vs business credit card liability: Who is responsible?

You can choose between a business credit card where you are personally responsible for it (known as personal liability) or one where your business is responsible (business liability). Here are the basics of each one:

These liability options are important to think about if you're in business with other people, or if you want to protect your personal finances against any potential issues.

How to apply for a business credit card

For a business credit card with personal liability, you'll usually be able to apply online. For cards with business liability or more custom features, you usually need to fill in a contact form and speak to an account manager to apply.

Eligibility

• Business registrations. You need a valid ABN, ACN or other eligible registration details.
• Revenue or income requirements. Business cards that list specific criteria typically require at least $75,000 in annual revenue. You'll also need to show proof of your business income and/or individual income for all applications, even if no minimum turnover or income amount is listed.
• Other business details. This can include your business' annual turnover, monthly spending and other financial details. Some cards also require you to be operating for at least 6 or 12 months.
• Australian residency status. Most business credit cards are available to permanent Australian residents and citizens. The business may also need to be operating in Australia.

Documents and details

You'll need to include some basic personal and contact information, just as you would with any credit card. This typically includes:

• Contact details for you and your business
• A valid form of ID, such as your drivers licence, passport or Medicare details
• Business details including the industry, years it's been active and the ABN, ACN or other required registrations
• Business revenue, profits and losses
• Personal income and expenses, if it's a personal liability business card
• Your accountant's details
• Additional cardholder details if you're getting cards for employees
• Supporting documents, such as tax statements, profit and loss statements or payslips for your own income

Corporate credit cards

Corporate cards are similar to business credit cards but offer more customised features to suit larger entities. This usually includes unlimited employee cards, higher credit limits and card controls.

Corporate cards are also set up with business liability, unlike some cards for smaller businesses that offer personal liability. The eligibility requirements can also include a minimum number of years in trading, a minimum annual turnover or incorporated status. And to get a corporate card, you usually need to speak to the provider's business or corporate banking team.

Alternatives to business credit cards

If you have just started a business, don't meet the annual revenue requirements or can't find a card you want right now, here are some other options:

Expense management cards and plans

Expense management cards offer a mix of features similar to business credit card accounts and expense management software like SAP Concur or WebExpenses. They're designed to be an all-in-one solution and often come with virtual cards, expense approval and custom settings.

Business loans

Business loans can offer between $5,000 and $20 million, which is typically repaid over a set amount of time with interest. So they are often suited to specific expenses or goals, rather than ongoing business spending.

Personal credit cards

Personal credit cards are used by some small businesses and sole traders when they don't need a lot of business features for the account (like GST breakdowns). It's possible to use a personal card to separate spending, but all of the liability will be with the account holder.

Frequently asked questions

• Can I get a business credit card in my business' name?

  If you're the business owner, sole trader or an authorised controller of the business, you can apply for a credit card for your business. If you want your business entity to be legally responsible for the account, look for a credit card that offers a business liability structure, rather than personal liability. Some lenders that offer business liability credit cards include NAB, Westpac and St.George.

  Depending on the card, you could also add your business name to the physical card, usually alongside the name of the individual cardholder.

• Is business credit card interest tax deductible?

  In general, you can claim a tax deduction for most operating expenses each financial year, including banking fees and charges. This means you could be able to claim your business credit card's annual fee, as well as any interest that's charged if you carry a balance.

  Talk to your accountant to find out what charges you're eligible to claim. You can also check the Australian Tax Office website or call the ATO small business line on 13 28 66.

• Is there a business credit card with no annual fee?

  While business credit cards can offer annual fee waivers or promotions, most of them charge annual fees. But depending on your circumstances, you may be able to claim the annual fee as a tax deduction.

• How many additional cardholders can I get?

  You'll typically be able to get at least 1 additional cardholder added to your business credit card account, and some cards offer up to 99 additional cardholders. Corporate cards can offer 500 cards or more, with some other accounts offering unlimited cards for employees.

  When you're comparing cards, remember to check if there is an additional cardholder fee so you can weigh up the costs.

• Do business credit cards check personal credit reports?

  If you apply for a business credit card with personal liability, the card issuer will check your personal credit history. The application will be added to your credit file and if you're approved, the account details will also be added.

• Are the rewards for business credit cards the same as for personal credit cards?

  Business credit cards offer similar rewards to personal credit cards, including frequent flyer and flexible reward programs. But there are some that offer more business-focused features.

  For example, cards linked to Qantas Business Rewards earn Qantas Points that you can transfer to personal Qantas Frequent Flyer accounts. Some cards also give you the choice between collecting all the points in one account and letting employees earn points with their additional cards.

• Are there taxes on frequent flyer points?

  According to the Australian Taxation Office (ATO), earning points is not subject to tax. But there may be tax implications for redeeming points for flights and other rewards, or for gifting them to family members. You can refer to the ATO website for further information on when tax may apply to rewards you redeem through a loyalty program.

• Are there business credit cards for bad credit?

  No, business credit cards typically require good or excellent credit history. If you don't have credit history for your business, you could also consider an expense management card with a line of credit. As you use it and make payments on time, you'll build up good credit history and should be able to access more credit.

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Justine released her book Become A Business Money Magnet - Simple habits to manage your money and supercharge your profits in 2024; she is a registered BAS Agent, Ladies Finance Club Ambassador, and named one of Coach Foundation's Top Female Business Coaches for 2022.

To make sure you get accurate and helpful information, this guide has been reviewed by Justine Mclean, a member of Finder's Editorial Review Board.

Written by

Richard Whitten

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise

Richard has written 527 Finder guides across topics including:

• Home loans
• Property
• Personal finance
• Money-saving tips