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8 Things You Must Know Before Getting a Business Credit Card



In many ways, a personal and a business credit card are very similar. However, business credit cards provide a lot of extra advantages over a personal one. Whenever you are setting up a new business, a business card is always more useful than its personal counterpart for several reasons.

Credit cards for businesses are one of the most powerful instant-cash options for small business owners and entrepreneurs. Entrepreneurs can purchase necessary supplies, equipment and upgrade their inventory utilising these cards. Most importantly, business cards offer a higher credit limit.

Before availing a business credit card, here are 8 things you must know beforehand.

8 most important things to keep in mind:

Business cards work differently than personal cards. The most important things to remember about them are:

  • Your company doesn’t need incorporation: You might have heard that your company needs incorporation before you apply for business credit cards. Well, that is incorrect. Owners of a proprietorship company or an LLP (Limited Liability Partnership) firm can also apply for such a financial product.
  • Convenience: In the modern cashless world, a business card may be the answer to all your short-term liquidity needs. You no longer have to carry a chequebook to cover your company’s financial needs. You can use these cards internationally.
  • Addressing financial crises: These credit cards are useful when your establishment needs a temporary financial cushion. If your firm is having trouble raising funds during financial crises, such cards can prove beneficial.
  • Availing loans is easier: If you possess business credit cards, availing loans will become easier. Many cards offer you the luxury of availing a loan even if you do not have a strong credit history. This is perhaps the most important reason for having a business credit card.
  • Helps to separate business and personal finances: Entrepreneurs often have difficulty in separating and maintaining their personal and business expenses. For tax and accounting practices, it is essential that they are kept distinct from one another. A business card does the balancing act well.
  • Avail cash withdrawal from ATMs with no interest: Cards like Bajaj Finserv RBL Bank SuperCard offer interest-free ATM withdrawals for up to 50 days. Only a flat processing fee of 2.5% applies.
  • Benefit from bonuses and offers: Most such credit cards bring a lot of bonuses and offers which ordinary cards don’t. These are especially useful for entrepreneurs who can save more with every swipe. However, note that different cards have different offers. So, do read the applicable terms and conditions before availing. Leading NBFCs in India including Bajaj Finserv also offer credit cards. They also bring pre-approved offers on personal loans, business loans, home loans along with credit cards and other financial services.
  • Combine personal and business card rewards:  Many people use personal cards to gain frequent flier points, hotel loyalty rewards, and various other reward points. If you opt for business credit cards that are co-branded with an airline or an organisation, you will gain accelerated loyalty points with every purchase.

Remember, both personal and business credit cards tend to have similar features when availed from the same lender. Business credit cards have a few extras. So, approach a reliable financial company and get the best card according to your needs. Also, do check your credit card eligibility to ensure a quick approval.

Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at HighlightStory