Business credit cards: What you need to know before getting one

Business credit cards are used by businesses rather than an individual. They can be used for business expenses, with some cards offering extra benefits such as cashback and travel insurance. Furthermore, they can help build a credit profile or manage employee expenses.

Business credit cards

Who can get one

Businesses of all sizes can get a business credit card, but you can also get one if you:

  • Own and run a small business (you can get a small business credit card)
  • Are a sole trader
  • Are starting a new business
  • Make purchases for a larger business that you work for

What perks can you get?

Business credit cards provide different or even a combination of benefits. These include:

Cashback: Some credit cards will reimburse a percentage of your card purchases as cash. For example, you may get up to 5% cashback on your bill at some restaurants. You could also get cashback on purchases for tax returns, courier services, or printing services.

Discounts: There are some business credit cards that provide discounts or vouchers for shopping at certain stores.

Other cards give air miles reward points which can be exchanged for cash or vouchers. 

Insurance: You can get free travel insurance as a feature of some cards.


  • If you pay your credit card bill in full, you can receive up to 56 days of interest-free credit on your purchases. This can help you spread the cost of your business expenses and boost cash flow.
  • Many business credit cards offer large spending caps or no limit at all. 
  • Spreading your repayments over several months helps guarantee that the money you have coming in does not go straight back out. Then, you can cover the start-up charges you had to pay.
  • It is easier to purchase what you need online or over the phone.
  • They are useful if you or your staff need to go overseas for work or meet with clients outside of the office.


  • It is risky to use multiple credit cards. Commit to one card allows you to manage your spending and keep track of your credit status.
  • Depending on the number of your employees, having employee cards may be beneficial. If you have 50 employees, acquiring two or three cards for different expenses won’t destroy your business, given that your employees use the cards wisely and for small transactions. However, you must still examine their monthly bills to ensure that they are using the card appropriately.
  • Don’t make risky purchases with a business credit card. If you can’t repay the amount, you will be charged interest and possibly extra fees. This will only increase your debt.

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