Credit where credit is due

Although business credit cards are commonplace amongst big company employees, small to medium business owners can also have the advantages and efficiencies of using company credit cards to treat their professional expenses separately, with separate statements. As a principal, whether you have ten employees or a hundred, there are a number of benefits to giving your staff a credit card reserved solely for company transactions.

What is a corporate credit card?

Business credit cards like the Qantas business card are distinct from personal cards and are offered only by a few issuers. With a corporate credit card account, employees are able to cover their business-related expenses, such as travel. Although they are usually issued in the company’s name, each carries the details of the individual employee.

What are the benefits of having a business card?

When used responsibly, company credit cards can offer many benefits. Primarily, a business credit card can be a convenient way to quickly secure short-term financing.

Investing in business cards for yourself and your employees also makes it much easier to manage company expenses. Not only does it become easier to keep track of office overheads but you’ll be able to see exactly where your money goes and organise your finances accordingly. It’ll also help you build a credit rating for your firm.

If all business-related costs are limited to one credit card account, it’ll be much easier to calculate and fill out tax information at the end of the tax year too!

Moreover, if you’re the boss then you can allocate cards and keep track of who is spending what. If you do your research, you might find it possible to secure a card which offers reward programme benefits that are useful to the company – giving you even more perks.

Overall, the main benefits of having a business credit card can be summarised as followed:

  • Quick, convenient and secure payment method
  • Build a positive credit rating for your business
  • Keep your business accounts up-to-date and organised
  • Give employees easy and safe access to business funds where necessary
  • Offer rewards for your company whenever you spend on the card

How should you choose a business credit card?

Once you have decided to open a business credit card, there are a few things to look out for when making your choice.

  • Makes sure you check introductory rates against annual ones: while a credit card might be just a few dollars per month now, it could go up considerably after the first year
  • Keep your eyes peeled for annual fees, interest fees and balance transfer fees
  • Compare the different rewards offered by different card providers to find an option which offers you the best benefits
  • Consider how many people may have access to the cards/how many account holders there are
  • Investigate the different security options and what the protocols are for lost or stolen cards
  • For businesses specialising in international trade, be especially aware of foreign transaction fees which can exacerbate shipping costs
  • Always look for a card that fits in with your corporate spending

What rewards are available on business cards?

It depends on the card that you choose (see above), but taking the Qantas business card mentioned above as an example, let’s look at some of the rewards.

  • Qantas points earned on each purchase – 1 point per dollar spent on card purchases; 2 points per dollar spent on selected Qantas services is Australia
  • Points transferred to Qantas Frequent Flyer account monthly
  • Award flight offers to hundreds of destinations
  • Access to gift cards, experiences and products via Qantas Frequent Flyer Store
  • Travel Inconvenience Cover covers delayed luggage, missed connections, late flights or denied boarding on flights purchased with the card

As you can see, there are numerous benefits to investing in a credit card for your company. The rewards available are tailored towards businesses and ensure that you get access to perks and benefits which you actually will use while maintaining some efficiencies in your expense management system.


Show More