A guide to business credit cards

Whether to get a small business credit card - and which one to apply for - is a matter of balancing features against interest and fees, and securing the best business credit card offer.

Ready to start looking? Check out our top cards below. 

Credit card features and benefits

  • Accounting: credit cards can consolidate business expenses into one monthly payment, it's simple to monitor expenses - via multiple cards - with monthly and online statements.
  • Cash flow: if you're constantly juggling immediate expenses and uncertain payments, small business credit cards can tide you over - so long as the debt isn't only increasing.
  • Credit card rewards: paying for small business expenses via credit can add up to a valuable amount of rewards - especially handy for company travel.

Credit card interest and fees

  • Most business credit cards charge higher fees than personal accounts, although they're tax deductible.
  • Corporate credit cards typically have higher interest rates than the best low rate personal credit cards, so you'll want to keep ongoing debt to a minimum (or look at some small business loans).
  • Business credit card rewards typically involve large annual fees, so you'll want to get rewards value for fees.

Business credit card - or personal?

Many small business owners start out by using their personal credit card for business expenses. But is that the right call?

Advantages include:

  • Minimising fees (eg, annual fees) through fewer accounts
  • Better interest rates
  • Avoiding the pitfalls of multiple accounts - such as fees for missed payments
  • Maximising rewards
  • Avoiding the hassle of applications and credit checks

Disadvantages include:

  • Hassle of separating personal from business expenses
  • Difficulty of proving business expenses to tax office
  • Personal credit ratings can be damaged (if you miss payments or exceed your limit)

While it may be easier and more cost effective to use a personal credit card for business expenses when you're setting up - for ease, cheap interest rates and fewer fees - the accounting difficulties in the longer term will probably make a small business credit card desirable once you're up and running.

Compare today's top business banking deals