1. Home
  2. Credit cards
  3. How To Choose A Business Credit Card
Published July 21, 2023
Reading Time
6 minutes

How To Choose A Business Credit Card

To choose a business credit card, assess your eligibility and needs, check for perks and rewards, and then compare offers before applying.

Edited By

Whether you’re just starting a business or are an experienced owner, a business credit card can help keep your finances on track. Much like getting your first credit card in Australia, there are certain steps you’ll want to take when choosing the right business credit card for you.

Evaluate your eligibility 

You’ll need to meet specific criteria to get a business credit card. Apart from the ubiquitous credit card requirements of being an Australian citizen at least 18 years of age and having a good credit history, each provider will have its own eligibility criteria. 

Generally, though, you’ll need: 

  • A valid ABN (Australian Business Number)
  • A minimum annual turnover of $75,000
  • To have been in operation for 12 months to establish a pattern of cash flow
  • A business address in Australia
  • To be registered for GST (Goods and Services Tax). 

Obtaining a business credit card without these prerequisites can be problematic — especially if you don’t meet the minimum revenue requirement. 

If you fall short, consider whether a business credit card is worth it for your business now. You may be better off with a business loan as you grow. 

Assess your needs

Understanding what you want from a business credit card will go a long way towards finding the one that best suits your needs. Apart from attractive sign-up bonuses, a business credit card should make your business run more smoothly by assisting in managing your day-to-day operations and cash flow. 

Here are some other factors to consider: 

  • Your spending habits. What types of purchases will you typically make with your business credit card? Do you spend a lot on travel, fuel or office supplies? Knowing this can help you narrow your choices. 
  • Your budget and annual spending. How much you plan to spend in a year will help you decide whether a business credit card with an annual fee makes sense. If you have a high yearly spend, you may find a card with a waived annual fee or one that offers enough rewards to offset the cost of the annual fee. If not, an option without an annual fee might be a better fit. 
  • Your credit limit requirements. There are two main kinds of business cards: charge and credit cards. Charge cards must be paid in full each month, while credit cards have a revolving credit limit. Charge cards offer more flexibility but require a higher credit rating and typically incur higher fees. 
  • Your need for business tools. Some business credit cards offer tools, such as data links to MYOB and Xero, that can provide a clear picture of your monthly expenses and cash management.
  • Your ability to use the perks. Some business credit cards offer additional perks, like travel insurance, purchase protection and airport lounge access. These features can be valuable, but they’re not essential for everyone.
  • Your priorities. There are many types of credit cards, but the best one for you depends on your business priorities. Do you expect to maintain a statement balance? If so, consider a business credit card with a lower interest rate. Do you plan to travel frequently? Consider a card associated with a frequent flyer program to reduce the cost of air travel. 

Check for specialised business tools

A business credit card should make your business run more smoothly by assisting in managing your day-to-day operations and cash flow. When comparing cards, check into the specialised business tools and accounting features that might benefit your business, such as: 

  • Digital accounting tools that provide a clear picture of your monthly expenses and cash management, such as the ability to share spending data with MYOB and Xero
  • Easy-to-access data feeds for business software, accounting packages or the ability to import to or from Microsoft Excel 
  • Employee card management so you can quickly control individual spending limits, access, review transactions, block or lock cards, and more 
  • Customised statements with detailed breakdowns of spending, especially when you have multiple cards amongst your employees 
  • Tax help, like specific GST information for transactions 
  • Waived or limited fees for additional cardholders and international transactions 
  • Interest-free periods on purchases 
  • Security features, like fraud protection, insurance to cover unauthorised transactions or employee misuse.

Consider the value of business credit cards with rewards

Business credit cards offer plenty of options for rewards, from cashback to miles and frequent flyer points, and choosing the best one for you requires additional thought. 

When evaluating business credit cards with rewards, here are some factors to consider:

  • The rewards value. How much are the rewards actually worth? Cashback is straightforward — 1% is one cent — but the value of points or miles isn’t quite so fixed. Some have fluctuating values, which may require you to strategise to maximise your rewards. 
  • How you earn rewards. Rewards are typically accrued based on your spending in specific categories, so choose a card that aligns with your spending. For instance, a rewards card that rewards fuel spending won’t be a good fit for a business owner who doesn’t need to use a car — but it would make a lot of sense for a business owner who spends a lot of time on the road. In addition, some cards, such as the NAB Rewards Business Signature Card, earn rewards points on payments made to the Australian Taxation Office (ATO), whereas others offer reduced rewards for payments made to government bodies — or no points at all.
  • How you redeem rewards. Cashback is often redeemed for a statement credit, which can go a long way towards paying off your balance. Reward points can be redeemed for all sorts of things — travel, gift cards and merchandise, to name a few — but some options offer more value than others.
  • The flexibility of the rewards. Can you transfer your points to another loyalty or frequent flyer program? Do you have to use your rewards points before a specific date to prevent them from expiring? Again, consider how much work you want to put into tracking rewards and optimising their value before choosing a card. 

Compare business credit card offers

Once you’ve narrowed down your choices, compare business credit card offers to find your best match. 

The big four banks all have business credit cards with accompanying sign-up incentives and rewards packages for partner airlines. Some of these cards offer additional incentives, such as no annual fee for the first year and multiple users.

Prepare to apply

Before applying for a credit card, be sure to read the terms and conditions carefully and understand the fees, interest rates and other features of the card. Talk to the bank or credit card company if anything doesn’t make sense to you. 

If you still need clarification, talk to your accountant or a financial adviser. They can help you compare different cards and choose the best for your business.


How to Pay Tax as a Sole Trader

How to Pay Tax as a Sole Trader

Sole traders pay at the individual income tax rate. You can earn up to $18,200 as a sole trader without paying tax.

What Is a Business Credit Card?

What Is a Business Credit Card?

A business credit card is like a personal credit card but usually has a higher credit limit and specialised features, like accounting tools.

When Are Business Credit Cards Worth It?

When Are Business Credit Cards Worth It?

Business credit cards may be worth it if you want to separate personal and business expenses or need funding to cover short-term costs.

5 Things To Know Before Starting A Small Business

5 Things To Know Before Starting A Small Business

Before starting your own business, refine your long-term vision, register and apply for an Australian Business Number (ABN), and open a business bank account.

Back To Top