Best Small Business Credit Cards in Australia

A facility that allows you to transfer the balance of an existing business credit card to a new one. There is usually a limited-time discounted interest rate on the new card that applies to the transferred balance. This can be a good way to pay down a credit card debt while the lower interest rate applies.

A credit card cash advance simply means withdrawing cash using your business card. Some cash-like transactions are also considered to be a cash advance (e.g. buying foreign currency). There is usually a fee for making a cash advance and a higher interest rate generally applies (compared to making a purchase using the card). Interest is also usually charged immediately on cash advances, whereas there are interest-free days for purchases.

Interest-free days are a core part of how credit cards work. This is a period of time after a purchase is made during which you won’t be charged any interest. Interest-free periods on business credit cards can range from 0-55 days.

Some business credit cards offer an enticing introductory interest rate that’s lower than the card’s standard variable rate. These low credit card rates rates can be deceptive as they make the card seem artificially cheap. Always look at the ongoing interest rate when comparing cards.

Likewise, some business credit card providers waive the annual card fee for the first year but charge a fee in every subsequent year.

If you have multiple credit cards (e.g. cards issued to senior staff) it’s usually simple to track spending and expenses across all cards centrally.

Most cards offer a level of fraud protection. Put simply, this is monitoring provided by the credit card company that responds if there is suspicious activity on the card.

Some business credit cards allow you to earn rewards points every time you use your card. You'll earn points for each dollar you spend, and then you can swap these points for the likes of travel, gifts, or even cash back to your credit card.

Pay attention to what rewards scheme the card you’re considering is part of and whether the included rewards will actually be useful to your business.

This is essentially a sign-up bonus when you first get your card. Sometimes the bonus is dependent on you spending a certain amount using the card within a set amount of time.

With some more premium business credit cards, you might get insurance included for free. Common examples are:

• Travel insurance: Often available on travel credit cards, this provides cover for a range of risks for domestic and international trips. Bear in mind, for credit cards with travel insurance you usually need to book the trip using the card for the insurance to apply.

• Purchase protection: Provides cover for a period of time after you make a purchase using your card if the item is damaged, stolen, or even if you change your mind.

• Extended warranties: This provides an extension on the manufacturer's standard warranty for items purchased using your card.

• Price protection: If you buy an item using your card and the price drops within a specified period after the purchase, price protection cover could mean you get a refund for the price difference.

Available with more premium business credit cards, a concierge service will help you with booking trips, shopping, business gifts, dining and hospitality.

Business credit cards with frequent flyer perks sometimes include free passes to certain airport lounges. There is usually a limit on the number of lounge passes available with credit cards, but on very premium (expensive) cards, access may be unlimited – e.g. certain American Express credit cards.

These can include travel vouchers, extra checked bags, priority boarding, or discounts on hotels and car rentals. If you travel frequently, you may be able to minimise costs by opting for a credit card with no international fees.

Depending on the card, you could have access to the likes of discounts on office supplies, free software subscriptions, or extra points when you spend with certain retailers.

In many cases it's simpler to have a separate credit card for business spending. For example, this can make your accounting much simpler as you won't need to separate business from personal expenses on your credit card statement.

Interest costs and fees relating to the business use of a credit card may also be tax deductible (according to the ATO). If your spending on a single card is a mixture of personal and business, calculating what costs are tax deductible could get messy.

As well as this, you’ll be able to share your business credit card account with your employees through additional cards.

We'll cover this further below, but some business credit cards give you the option for the business (and not you personally) to take on liability for the credit card.

The drawback to having a specific business credit card, is that you may end up paying fees on two cards instead of one.

A business credit card helps with cash flow by giving you access to a line of credit you can access at any time. This access will be up to a set limit (unless you have a charge card) but you won’t need to apply time and again to access credit up to that limit.

You could use a business credit card to pay suppliers, book travel and accommodation for staff, purchase stock and cover other ongoing expenses.

A credit card only charges interest on the amounts you spend, although most cards come with an annual fee that’s charged whether you use the card or not.

But if you can find a card with no annual fee, and you pay off the card’s balance in full within the interest-free period, you essentially are getting free access to ongoing cash flow for your business. You may even earn rewards points and other perks in the process.

The maximum limit on a business credit card can vary from one lender but is usually somewhere between $50,000 and $100,000. However, the actual limit on a business credit card may also be determined by your business revenue. Corporate credit cards (for large businesses) usually have a higher maximum limits – or sometimes have no maximum.

Remember, you do not need to accept the maximum credit limit that’s available to you. If the limit is higher than it needs to be, this could impact your ability to access other types of business finance in future. How many credit cards can my business have?

Most business credit card providers allow you to apply for additional cards that can be issued to members of your team. Some providers allow up to 99 separate cards on the same account. There is usually a fee for each additional card (either one-off or an annual fee).

Yes, there are credit cards that will allow your business to transfer debt from another card onto the new card. A balance transfer fee may apply but there is usually a lower interest rate applied to the transferred balance for a period of time (e.g. up to 12 months). Any new purchases made using the card will have the standard credit card rate applied.

Business credit card liability essentially refers to who is responsible for the card and any debt that is built up using it. There are three types of credit liability structure according to major Australian lender Westpac:

• Personal liability: This means the business owner is personally responsible for all transactions on the credit card account. This is a common option for small businesses credit cards.
• Joint and several liability: This is when multiple business owners or directors jointly take responsibility for the balance owing on the credit card.
• Business liability: The business itself is liable for the payment for all transactions on the credit card. The business owner does not need to take on personal responsibility for the debt. This is usually only an option with corporate cards available to larger businesses.

A business credit card is usually one that’s used by small to medium businesses. There is usually a relatively low credit limit and a cap on the number of additional cards that can be issued on the account.

Corporate credit cards are designed for large businesses and enterprises with higher credit limits and large numbers of additional cards available.

Cardholders with an American Express Qantas Business Rewards Card can currently earn 1.25 points per $1 spent on everyday spending. However, American Express has announced an upcoming change that means once a cardholder reaches 500k points in a particular year, earn rate on everyday spending will decrease to 0.75 points per $1 spent for the remainder of that year. You can continue to earn points beyond 500k, but at a reduced rate for everyday spending.

There will be no impact on the earn rate on spending with Qantas and government payments if the cap is exceeded, but spending on those items will count towards the 500k points cap.

The rollout of this change will be staggered depending on when the cardholder applied for the card:

If you applied before 1 July 2023: Changes will take effect on 1 Jan 2024

If you applied between 1 July 2023 and 9 Jan 2024: Changes will take effect on 10 July 2024