A credit card that is intended to be used for business purposes rather than for an individual’s personal use is referred to as business credit card. These credit cards are available for businesses of all kinds and sizes. If a business defaults on their credit card bills then the business owner will be held liable for the repayments of the dues depending upon the terms and conditions of the credit card agreement. Business credit cards usually have unique benefits that are specially designed to entice business customers. The benefits provided on these cards vary from company to company. For example, some credit card companies offer cashback on purchases at stores where businesses are more likely to shop from, whereas, some business credit cards offer huge sign up bonuses in anticipation of high business expenditures. If business expenses have significant travel expenses then a business can also apply for a card which offers travel perks.
Business credit cards are best suited for those entrepreneurs who want to establish business credit for his/her business. In addition to offering usual perks and benefits like other traditional credit cards, business credit cards also tend to help small or mid-sized businesses to keep their business expenditures separate from their personal spends. This separation helps business owners in maintaining their bank accounts as well as taxes. These credit cards also provide simpler ways to the business owners to monitor their employees’ business purchases.
Features and Benefits
Dual benefits – Besides the benefits of cashless transactions, business credit cards also benefits both the employer and employees. Employers can get a clear picture of the monthly spends done by their employees, whereas, the employees can make the important business related transactions on their own.
Helpful for higher expenses- If a business is making a lot of expensive purchases then opting a business credit card can be helpful than any other credit card since they tend to have higher credit limit. A higher credit limit can make it easier to use less of your available credit which eventually helps in improving your credit score.
Earn rewards on different categories of spends- Many business credit card offers you rewards on different category of spends such as phone bills, utility bills, Wi-Fi or office supplies. Business owners can choose a business credit card which rewards them the most on their favourable category of spends.
Secure Transactions – Business credit cards offers secured transactions for all the business expenses. Additionally, there is no burden of carrying cash or losing cash. Business credit cards can carry out the business expenses with just swipe.
- Online Convenience – The business credit card can be easily used to make online secured transactions. All the expenses can be simply managed online through bank’s net banking. Individuals can easily view or download statements, pay their credit card bills, block their credit cards, raise queries or grievances and send their feedbacks for better services.
- Credit Card Statements – Businesses can easily receive monthly credit card statements which can help them in maintaining their expenses bank accounts. Based on these statements, businessmen can easily analyse their business spends and calculate their monthly expenditure based on that. It also helps them in budgeting and future operations. Without many efforts, they can track their expenses.
Reward Points –Business owners can earn reward points or travel miles on every transaction they make. These accumulated reward points or miles can be later redeemed for discount or cashback vouchers, flight base tickets, gifts and much more.
- Multi-purpose expenses – Business credit cards can be used for various expenses such as utilities, entertainment, maintenance, business operations, etc. Business employers can also restrict the category of expenses on their credit card. With this, business owners can limit the transactions according to them.
Eligibility Criterion for Business Credit Cards
Individuals can only opt for a business credit card if they have small or mid-sized business, government run companies, sole proprietorships and other partnership firms
Banks issuing the credit card require businesses to show a certain amount of profit, turnover or aggregates.
- Companies who apply for business credit cards must have satisfactory track records of operations and a good credit score.
- Individuals who need a separate expenses account are also eligible for applying for business credit cards. These credit cards can be used for making business like expenditure which will help in tracking monthly spends.
Top Business Credit Cards
Here is a list of best business credit cards available in India:
- SBI Corporate Platinum Card
This card helps in analysing the company’s spending pattern with the help of Visa Intellink spend management tool. Individuals can enjoy a new level of convenience of getting customised data analysis, e-statements as well as detailed insights of expenses. Get category wise tracking details to negotiate better rates and terms with vendors and suppliers. Business owners can put a limit on daily, weekly and monthly expenditure on the card usage.
- HDFC Business MoneyBack Credit Card
This card helps you in earning a number of rewards on your travel, shopping and other expenses. Accumulated reward points can be redeemed for cashback against the outstanding amount. (100 reward points=Rs.30). These reward points can also be exchanged for exiting gifts and air miles. This credit card allows you to save up to Rs.3,000 every year on fuel transactions. Cardholders can also enjoy revolving credit on their credit card at nominal interest rate.
- Axis My Business Credit Card
This card is tailor made to meet every business need you have. It allows you to enhance your business efficiency through its various features and benefits. Cardholders have the benefit to convert their big ticket purchases into simpler EMIs. It lets you control the travel and business expenses more effectively. In addition to that, cardholders get 2 complimentary hotel night stays on Ezeego1.com which is up to Rs.3000 per night. Along with that, individuals can also get complimentary airport lounges visits every quarter that is 2 times in every 3 months, classified as Jan to March, April to June, July to September and October to December