Choosing the right company credit card can make a significant difference for small businesses. With the best company credit cards for businesses’ needs, SMEs and business owners can manage cash flow more efficiently, earn rewards, and separate personal and business expenses.
Understanding the best options available can allow brokers to make better recommendations to clients.
This article explores 5 of the best company credit cards available to small businesses in Australia, focusing on their key benefits, fees, and ideal use cases.
Whether your clients need a low-fee option, travel perks, or strong rewards programs, this guide will help you match them with the best credit card for their needs.
What Is A Company Credit Card?
A company credit card, or business credit card, is a financial tool designed specifically for business use.
Unlike personal credit cards, these cards offer features tailored to business needs, such as higher credit limits, expense tracking tools, and employee card options.
Types Of Company Credit Cards
- Rewards Credit Cards: Offer points, cashback, or travel perks based on business spending.
- Low-Interest Cards: Designed for businesses that carry a balance, reducing overall interest costs.
- Charge Cards: Require full repayment each month but offer flexibility in spending limits.
- No-Annual-Fee Cards: Ideal for businesses looking to minimise costs.
How They Work
Company credit cards provide businesses with a convenient way to manage expenses, allowing owners to issue multiple cards to employees while setting individual spending limits.
Transactions are recorded digitally, streamlining bookkeeping and tax reporting.
Many of the best company credit cards come with built-in expense management tools, which can make tracking purchases and categorising spending easier.
Responsible usage can also help businesses build their credit profile, potentially improving their ability to secure loans and financing in the future.
Key Considerations Before Applying
Before applying for one of the best company credit cards, brokers and small businesses may want to consider several factors to ensure they choose the best option for their financial needs.
Eligibility requirements vary by provider, with some cards requiring a minimum annual revenue or specific time in operation.
Interest rates and fees are worth assessing, as these can significantly impact the overall cost of using a card. Some cards offer lower interest rates, while others charge high annual fees in exchange for premium benefits.
Additionally, businesses might want to review the spending categories that earn the most rewards, ensuring the card aligns with their purchasing habits.
By carefully evaluating these factors, brokers and small business owners can select a credit card that best supports the business’s financial strategies.
How A Company Credit Card Can Benefit Small Business Owners
The best company credit cards can offer a range of benefits that can help businesses manage their finances more efficiently.
Below are some of the key advantages of using a company credit card.
- Improved Cash Flow Management: Company credit cards allow businesses to cover expenses while waiting for incoming payments. Similarly, interest-free periods can be beneficial for managing short-term costs.
- Separation Of Personal & Business Expenses: Using a business credit card helps keep transactions categorised separately, which can simplify tax reporting and accounting.
- Expense Tracking & Reporting: Most of the best company credit cards come with automated expense-tracking tools, allowing business owners to monitor employee spending and generate reports.
- Rewards & Perks
- Cashback Programs: Some cards offer a percentage of business spending as cashback.
- Travel Rewards: Frequent flyer points and complimentary travel insurance benefit businesses that require frequent travel.
- Purchase Protection: Some cards include extended warranties and insurance on business purchases.
- Building Business Credit: Consistently paying off balances can help a business establish a strong credit profile, which may make it easier to secure loans in the future.
Top 5 Company Credit Cards For Small Businesses In Australia
Here are 5 of the best company credit cards to recommend for small businesses in Australia.
They each offer unique benefits and rewards that can fit a client’s specific business model and spending needs.
1. American Express Qantas Business Rewards Card
The American Express Qantas Business Rewards Card is an excellent option for businesses that frequently travel and want to maximise Qantas Points.
With this card, businesses can earn up to 1.25 Qantas Points per $1 spent on eligible purchases, making it a valuable tool for businesses with high travel expenses.
Cardholders also receive yearly complimentary Qantas Club lounge passes and comprehensive travel insurance to cover business trips.
The annual fee for this card is $450, which is justified by its strong rewards program and travel perks.
- Pros: Strong travel benefits, no pre-set spending limit, and high Qantas Points earn rate.
- Cons: High annual fee and limited acceptance of AMEX at some merchants.
- Best for: Businesses with frequent travel expenses and high monthly spending.
2. Westpac BusinessChoice Rewards Platinum Mastercard
The Westpac BusinessChoice Rewards Platinum Mastercard is a solid option for businesses that want to earn Qantas Points without paying a high annual fee.
This card offers 0.75 Qantas Points per $1.50 spent on eligible purchases, making it a decent choice for business owners looking to accumulate rewards while managing expenses.
Additionally, it comes with complimentary travel insurance, providing added value for those who travel for work.
The annual fee for this card is $150 per card, making it a more affordable alternative to some of the premium business credit cards.
- Pros: Lower annual fee than many competitors, solid Qantas Point earning rate.
- Cons: No cashback option, relatively high interest rate.
- Best for: Business owners looking for a rewards card with a moderate fee structure.
3. NAB Qantas Business Signature Card
The NAB Qantas Business Signature Card offers rewards and financial flexibility, making it ideal for businesses that want to earn Qantas Points while managing their cash flow.
With this card, businesses earn 0.67 Qantas Points per $1 spent, making it a competitive option in the Australian market.
Additionally, NAB provides access to business support services, which can help small businesses streamline their financial management.
The annual fee is $295, making it a mid-range option with reasonable perks.
- Pros: Good balance of rewards and features, strong business banking support from NAB.
- Cons: Higher interest rates compared to some competitors.
- Best for: Businesses looking for a solid rewards program with added financial support.
4. Westpac Altitude Business Platinum
The Westpac Altitude Business Platinum credit card is a versatile choice that offers a mix of domestic and international rewards.
Businesses earn 0.5 Qantas Points on domestic spending and 1 Qantas Point on overseas spending per $1 spent, making it a strong option for companies with international business transactions.
The card also includes complimentary travel insurance, adding another layer of value.
The annual fee is $200, which is relatively affordable, given the card’s benefits.
- Pros: Strong international spending rewards, access to Altitude Rewards program.
- Cons: Lower domestic earn rate compared to other cards.
- Best for: Businesses with international spending needs or looking for a flexible rewards program.
5. American Express Platinum Business Card
The American Express Platinum Business Card is a premium option for businesses with high spending needs.
Cardholders can earn up to 2.5 Membership Rewards points per $1 spent, making it one of the most rewarding business credit cards in Australia.
The perks include airport lounge access and a range of premium travel benefits, making it an excellent choice for businesses that frequently travel internationally.
However, the annual fee is steep at $1,750, so businesses looking at this card may want to consider maximising its extensive benefits.
- Pros: Exceptional travel perks, high reward rate, and no pre-set spending limit.
- Cons: Very high annual fee, best for businesses with large budgets.
- Best for: Large businesses or those with significant travel expenses.
How to Choose the Right Company Credit Card
Choosing the right company credit card requires careful consideration of business needs, spending habits, and financial goals.
Each business has different requirements, so your clients can help narrow down their options by analysing available options and matching them with specific business demands.
Understand Business Spending Habits
Understanding business spending habits is crucial in selecting the best credit card.
Frequent travellers may benefit from cards with substantial airline perks, while businesses with high daily expenses might find cashback rewards more beneficial.
Companies with multiple employees may also need a card with expense management features.
Compare Fees Vs. Benefits
Another critical factor is comparing fees versus benefits. While generous rewards and perks might justify high annual fees, low-fee options may be more suitable for businesses with minimal spending.
Business owners can select from the best company credit cards by weighing the costs against the value of the card’s rewards program and additional benefits.
Interest Rates & Repayment Flexibility
Interest rates and repayment flexibility should also be a key consideration. Businesses that carry a balance may prefer low-interest credit cards to minimise costs.
Those who pay off balances in full monthly could maximise the benefits of charge cards with no pre-set spending limits.
Understanding repayment options can help businesses avoid unnecessary interest charges and improve financial management.
Conclusion
Selecting the right company credit card can benefit small businesses in Australia. Brokers can offer support and guide their clients by understanding their spending patterns and financial needs.
Whether a business prioritises travel perks, low fees, or cashback rewards, an ideal credit card is available that fits their needs.
By staying informed about the best company credit card options, brokers can help clients make smart financial decisions that improve and streamline their business operations.
