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, and use the card to boost your finances, instead of deplete them.
However, this is not possible if you are paying higher than necessary fees and interest, or not maximising your possible credit card rewards. But by doing a little research and identifying your spending and repayment habits, if you have a small business, it’s a simple process to determine the right card for you and your company.
To help small business owners in their search, Canstar’s expert team of researchers uses a sophisticated rating methodology to compare and rate business credit card providers in the New Zealand market. This year the research encompassed six different providers, and compared 12 different cards across a range of characteristics, including:
- Fees and interest rates
- Number of interest free days
- Standard and premium features
- Reward and loyalty programs
On the results of our research, we then award our top 5 Star Ratings to the providers of the best cards in the two categories: Low Rate Business Credit Cards and Rewards Business Credit Cards. We also present our top award: Bank of the Year | Business Credit Cards.
Bank of the Year | Business Credit Cards
Coming out on top and winning our top award for 2020 is the ANZ. The accolade acknowledges the bank’s 5 Star performance across both the Low Rate and Awards rating profiles.
In the Low Rate category, the ANZ scored highly with its Visa Business Low Rate card. The card offers a market-leading low rate of 12.9%, combined with a low annual fee of $35.
The ANZ’s Visa Business Airpoints card is again a market-leading card. On top of a competitive rate of 19.95% p.a. and annual fee of $145, it offers:
- 1 Airpoints Dollar per $75 of eligible spend, or 1 Airpoints Dollar per $50 of spend directly with Air New Zealand (up to $25,000)
- Business Owner earns 1 Status Point for every $250 spent on eligible purchases
- No Koru club joining fee (saving of $255), plus a discount of $145 off the standard 12-month individual Koru membership fee for all principals of the business
- Airpoints Dollars do not expire during card membership
Low Rate Business Credit Cards
Finding a business credit card that offers the lowest interest rate can have a big impact on businesses that carry a revolving balance from month to month.
To determine the best Low Rate cards in the market, Canstar’s ratings look primarily at the cost of owning the card – interest rates and fees – but also takes into consideration other card features.
Here are the three providers that topped our ratings by scoring 5 Stars for their Low Rate Business Credit Cards:
|ANZ||Visa Business Low Rate|
|BNZ||Business First Lite Visa|
Rewards Business Credit Cards
Businesses that spend big but pay the balance of the card each month may look for a little something extra in terms of rewards. This could be in the form of cash-back or access to loyalty schemes.
To determine the best Rewards cards in the market, Canstar’s ratings look primarily at the flight or cash/gift returns offered by a card measured against different levels of annual spending, but also takes into consideration other card features.
Here are the three providers that topped our ratings by scoring 5 Stars for their rewards programs:
|ANZ||Visa Business Airpoints|
|BNZ||Advantage Visa Business – Cashback|
|Westpac||Airpoints Business Mastercard|
If you have a small business and want to find out more about our latest Business Credit Card Star Ratings, click through to our report on the link below:
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