Owning a business means incurring lots of daily expenses and getting fed up using cash or debit cards for such transactions. Moreover, it is tough to track all such transactions. This is where Business Credit Cards come into the picture. There are plenty of credit card options available in the market. One can choose from a wide variety of credit cards like shopping, fuel, travel, student credit cards, and much more. But there is one more addition to the credit card categories which is Business Credit Cards. These cards are specifically designed for businesses and to provide them with a complete solution to track and manage all their daily transactions.
Apart from managing expenses, some premium business credit cards also offer travel benefits to businesses that incur lots of travel expenses and have to travel frequently for business purposes. The features and benefits of business credit cards are unlimited and the options are also not limited. Therefore, it might be difficult for some businesses to pick the right credit card. To help them out, we are here with this article, to help you in choosing the right credit card for your business. So, if you are looking forward to getting a new credit card for your business, it is worth going through the information given below before you make up your mind.
How To Choose the Perfect Business Credit Card
The structure of an organization and the transactions that are incurred on a daily basis differ from business to business. A business credit card works just like a normal credit card. For every transaction, you are rewarded with reward points or cashback, benefits on meeting the spending target, welcome benefits, and privileges for your business travels. Therefore, no one card can be regarded best for a business. However, with the help of the following tips, you would be able to make a decision on the right business credit card:
Know Your Business
Knowing your business is the foremost step while choosing the right business credit card. Take a look at your business spending habits, and where you spend the most. Track your spending and mark the categories like shopping, traveling, etc. If your business incurs lots of travel expenses, then going with a travel credit card would be a wise choice as it will offer you Airmiles for your spends, airport lounge access, and much more. Likewise, you can track your spending and choose the right category for your credit card.
Cashback Business Credit Card
If you are not able to categorize your business transactions or you spend in almost all categories, then one can opt for a cashback business credit card. With this, you will earn cashback for all your business spends. One of the best Cashback credit cards for businesses is the Paytm HDFC Bank SELECT Credit card.
One of the best features of business credit cards is that for every business transaction done with the card it offers you rewards in the form of reward points. Therefore, it is beneficial to go with a credit card that carries a higher reward rate. Also, as mentioned above, if you know your business spends then you would be able to select the best credit card that would offer you plenty of rewards for your business.
If you travel to international destinations often then it is better to go with a card that carries a lower forex markup fee. This is because most credit card carries a markup fee of around 3.5% on international transactions. Therefore, if you are going to use your card a lot internationally then go with a card that charges a lower forex markup fee. One such example is the Axis Bank Executive Corporate Credit Card which charges 2% of the transaction amount as the forex markup fee.
There are many business credit cards that offer the facility of issuing the same credit card for their employees. Also, the main account holder would be able to control and manage all the employee credit card accounts which give flexibility in the whole process.
Best Business Credit Cards
As there are many business credit card options available in the market, with the help of the above-mentioned points you can select the right credit card for your business. Below mentioned are some of the best business credit cards available that you can consider getting for your business:
|Card||Fee Structure||Main Features|
|American Express Platinum Corporate Card|| Interest Rate: 3.5% subject to a minimum charge of Rs. 100 |
Forex Mark-up Fee: 3.5% of the transaction amount.
Cash Advance Charges: 3.5% of the transaction amount.
| Complimentary Taj Reimagined Epicure membership. |
Unlimited access to 1200+ Airport lounges across the globe.
Travel Insurance and Overseas Medical Insurance.
Complimentary Platinum Travel Services, Platinum Concierge Services, 24 Hours Platinum Services.
|HDFC Bank Corporate Premium Credit Card|| Interest Rate: 2.95% per month (35.4% annually) |
Forex Mark-up Fee: 2.5% of the transaction amount.
Cash Advance Charges: 2.5% of the transaction amount, subject to a minimum charge of Rs. 500.
| 20 complimentary domestic lounge access per year. |
6 complimentary access to International lounges via priority pass.
Corporate Liability Waiver Insurance and Insurance Protection up to Rs 1 Crore.
|Axis Bank Executive Corporate Credit Card|| Interest Rate: 3% per month (or 23.88% annually) |
Forex Mark-up Fee: 2% of the transaction amount.
Cash Advance Charges: 2.5% of the withdrawn amount (subject to a minimum charge of Rs. 250)
| 8 complimentary access to international lounges. |
4 complimentary access to domestic lounges.
4 complimentary golf rounds or lessons in a year.
3 complimentary VIP Airport assistance services in a year.
|HDFC Bank Business Regalia Credit Card|| Interest Rate: 3.6% (43.2% per annum) |
Forex Mark-up Fee: 2% (plus applicable taxes)
Cash Advance Charges: 2.5% of the withdrawal amount subject to a minimum amount of Rs. 500.
| 12 complimentary International and Domestic airport lounge access every year. |
24/7 Concierge Services.
Up to 15,000 Bonus Reward Points on annual spends of Rs. 8,00,000.
If you choose a credit card for your business with proper research then the benefits provided with it can be doubled. Business credit cards has helped businesses by replacing the use cash. Also, one can track and manage all the business credit card issued to its employees. If you are planning to get a credit card for your business then above information will help you in making the right decision. If you still have any doubts regarding the same, then let us know in the comment section below.