The use of business credit cards by entrepreneurs to establish (or restore) credit and solve cash flow problems has repeatedly been shown to be a useful strategy. In 2019, 53% of businesses said that credit cards were an external source of funds.
A business credit card is very similar to another credit card, with the exception that it was designed and constructed with business use in mind. When using this type of account, business owners have access to a revolving credit line that they may either charge to the card and pay off over time while accruing interest fees or pay off completely.
Here are the five best credit cards for small business owners:
If you're a high-spending individual looking for great travel deals, the American Express Platinum Travel Credit Card is a terrific choice. The credit card offers travel coupons as well as Taj Hotel promos, which will undoubtedly appeal to frequent travellers and those who are devoted to the Taj Group of Hotels.
Cardholders can also enjoy one complimentary domestic lounge visit every quarter, and earn an above-average rewards rate of 0.88% on general expenditure (1 point per Rs. 50 spent; 1 point = Rs. 0.44). Cardholders can redeem rewards in the form of travel vouchers, cash, or InterMiles at varied rates of redemption, giving them flexibility when redeeming points.
Additional Features:You can manage your business expenditures efficiently with the MY Business Credit Card from Axis Bank. Benefits of the MY company Credit Card include a company savings plan, competitive interest rates, exemptions of fuel surcharges, access to airport lounges, and many other things.
With the MY Business Credit Card, you may also set up standing orders to pay all of your bills automatically, making it easier to better manage your company's utility costs. Additionally, this credit card offers the option to divide large purchases over Rs. 2,500 into easy-to-repay EMIs.
Additional Features:The SBI Platinum Corporate Card is a Visa card created with corporate customers in India in mind. As a result, the cardholder can use the Visa IntelliLink feature to track business costs. Moreover, the user-friendly layout helps people access different card details quickly, which saves time. Additionally, the card includes a free insurance plan that protects the business's liability in the event of fraud.
Additional Features:The Citi Corporate Credit Card offers a streamlined spending report for entertainment and travel that is as exclusive as it can be. This company credit card enables access to customised reports with a strong Visa Intellilink Spend Management System for better visibility and control. It also assists in identifying top suppliers for better negotiations.
Cardholders can also quickly access their online card statements and make a single payment for all of their cards using NEFT, a check, or RTGS.
Additional Features:The HDFC Bank Business Moneyback Credit Card accepts contactless payments, making it simple, quick, and secure to make purchases at retail establishments. With the HDFC Bank Business Moneyback Credit Card, you may pay all vendor/supplier bills and GST with up to 50 days of interest-free credit.
On their business credit card, cardholders can also access pre-approved fast loans and cash withdrawal capabilities. Additionally, you may use your HDFC Bank Business MoneyBack credit card reward points to get cash back on purchases (100 reward points are equal to Rs. 20). However, the cardholder must have a minimum of 2500 reward points to redeem against a statement balance.
Additional Features:Now that you know the rewards these cards offer, here are the charges associated with them**:
| Credit Card For Small Business | Annual Charges |
|---|---|
| AMEX Platinum Travel Credit Card | Rs. 5000 + GST from the second year |
| Axis Bank My Business Credit Card | Rs. 499 + GST from the second year |
| Citi Corporate Credit Card | Rs. 1000 + GST |
| HDFC Business MoneyBack Credit Card | Rs. 500 + GST |
| SBI Platinum Corporate Credit Card | Nil |
Business credit cards can be a huge help to business owners who are just starting or who are ready to grow their businesses. Several business cards also have credit limits that are larger than those of personal cards and reward systems that let you earn additional points for certain expenditures that are connected to your business, such as office supplies and phone bills.
Additionally, you can use your business credit card on the BharatNXT app to avail a whole lot of exciting rewards. The platform enables you to make seamless and hassle-free payments for a wide range of expenses, such as rent, salaries, taxes, and other utility expenses, using your credit card.
**Please note that the interest rates and card charges mentioned above are subject to change at the credit card company’s sole discretion.