Our Business Credit Card report is a good starting point to help you review Business Credit Cards on the market
Business Credit Cards - September 3rd
Speaking to Karna Luke, GM of SME & Enterprise Partnerships at BNZ, Canstar learns more about the bank’s business credit card offerings and what businesses can do to better set themselves up for financial success. What…
– Read moreCanstar is not able to give you personalised advice about the needs of your business. However, in general, the type of business credit card that a business is suited for will depend on how they intend to use the card.
Business credit cards usually come in three distinct types:
What is it? Low Rate business credit cards come with – as the name suggests – a low interest rate and flexible repayment conditions.
What is it useful for? The low rate option may be suited for a business that is revolving a debt on the card from month to month.
What is it? Low Fee business credit cards can have a low or no ($0) annual fee.
What is it useful for? The low fee option may be suited for a business that usually pays off its card balance in full and is seeking a low cost option for day-to-day business spending. If a business does not use its card very often, it might consider a low fee card. Having a credit cash flow option for the business can be vital, but business owners shouldn’t have to pay an excessive amount for the privilege.
What is it? Rewards business credit cards or charge cards come with a rewards program attached. The rewards offered may include cash-back, gift cards/shopping vouchers, frequent flyer rewards, merchandise, entertainment or lifestyle rewards – all of which we research and assess in our ratings.
What is it useful for? A rewards option may be suited for a business that could make the most out of earning rewards for their spending on a company credit card or charge card. Such a business would have to put a high volume of transactions through its card each month and always pays off the balance of its card.
If a business does not use its card very often, then it does not make sense to get a rewards card, as they would be paying more in annual fees than they would receive back in rewards.
Generally speaking, the key features of a business credit card are its:
Other features businesses may want to take into account include:
The size and performance of your business will likely dictate your credit card requirements.
Businesses with a revolving debt may benefit from a card with a lower interest rate whereas a smaller business seldom utilising the cards’ facilities may seek a card with low account fees.
Canstar always advises seeking the advice of your bank or a financial professional.
