Banking & Insurance - September 11th
Canstar's award for Bank of the Year | Small Business recognises that small businesses are the lifeblood of the economy. According to government statistics, they account for: 97% of all businesses 29% of all employees 26%…– Read more
Business Credit Cards - September 10th
For a small business, a credit card should be a beneficial tool. It should help with month to month cash flow, not become an additional expense. Where possible you should be a business credit card freeloader,…– Read more
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 more
Canstar is not able to give personalised advice. However, in general, the choice of business credit card depends on its usage.
Business credit cards come in two distinct types:
What is it? Low Rate business credit cards offer – as the name suggests – a low interest rate and flexible repayment conditions.
What is it useful for? The low rate option is suitable for a business that revolves debt on the card from month to month.
What is it? Rewards business credit cards come with a rewards program. The type of rewards offered include: cash-back, gift cards/shopping vouchers, frequent flyer rewards, merchandise, entertainment or lifestyle rewards.
What is it useful for? A rewards option is suited for a business that can use the rewards program to their advantage. This involves putting a high volume of transactions through the card each month, and always paying off the balance, so not to incur the higher interest rates associated with rewards programs.
Rewards cards also have higher annual fees. So if the card isn’t used very often, it’s not a good option, as a business can end up paying more in fees than it earns in rewards.
Generally speaking, the key features of a business credit card are its:
Other features businesses should take into consideration include:
The size and performance of your business will dictate your credit card requirements.
Businesses with a revolving debt may benefit from a card with a lower interest rate.
A small business with a large monthly credit card expenditure and no need for credit card debt can benefit from a rewards program.
Canstar always advises seeking the advice of your bank or a financial professional.