Top 5 Best Business Credit Cards in Australia

Discover the top business credit cards in Australia for small business owners and their teams. Utilizing a business credit card or charge card can increase your purchasing power and grant quick access to funds. Take advantage of exclusive perks, such as rewards programs, offered by top business credit card providers. Explore the advantages and disadvantages of business credit cards versus other SME financing options in this comprehensive guide.

Best Business Credit Cards Australia

best business credit card

Discover the top-rated business credit cards and business charge cards in Australia, carefully selected by our editorial team. Our list features the most competitive promotions available, but make sure to review the terms and conditions provided by the card provider before making a decision.

1. American Express Business Explorer® Credit Card

Discover why the American Express Business Explorer® Credit Card is our top pick for business credit cards in Australia. With an unbeatable points-to-spend ratio of 2 Membership Rewards Points earned for every $1 spent on everyday business purchases, this credit card outperforms any other Amex business credit card available in the market (except the Amex Business Platinum Card which is a charge card – more details on this below).

But that’s not all – Card Members can also enjoy additional perks, such as free airline lounge passes, complimentary travel insurance, and the ability to use Membership Rewards Points to pay off their business credit card balance. Don’t miss out on these valuable benefits – sign up for the American Express Business Explorer Credit Card today!

The interest rate for the Business Explorer Credit Card is currently advertised at 21.99% p.a., which is in line with the industry average. The card also offers up to 55 interest-free days, allowing you up to 25 days after your statement date to pay off your balance before accruing interest.

But what sets the Business Explorer Credit Card apart from the competition are its outstanding features. Discover the key benefits that make this credit card a must-have for any savvy business owner:

Earn 75,000 bonus points

Act fast and apply for the Business Explorer Credit Card before 4 April 2023 to take advantage of an incredible offer. Simply spend $3,000 within the first three months after your card is approved and receive a whopping 75,000 Membership Rewards Bonus Points. To put this into context, a $3,000 spend would typically earn you up to 6,000 reward points through the Business Explorer Credit Card, already surpassing most credit cards in the industry. This exclusive promotion is only open to new Card Members, including American Express Companion Card holders issued by the bank.

2. NAB Rewards Business Signature Card

Attention small business owners: looking for a hassle-free way to earn reward points on your business purchases? Look no further than the NAB Rewards Business Signature Card. This versatile credit card is an excellent choice for international travelers, as it offers triple points on purchases made overseas. While its everyday spending rewards rate of 1.25 points per $1 spent within Australia falls slightly short of the Amex Business credit card, it stands out by offering the same 1.25 points return on every $1 spent on government services – a unique benefit not found with other cards.

If you frequently use a business credit card to pay government agencies such as ATO, the NAB Rewards Business Signature Card could be the perfect choice for you. Don’t miss out on the opportunity to earn valuable reward points – apply for the NAB Rewards Business Signature Card today.

Looking for a business credit card with a range of benefits? The NAB Rewards Business Signature Card is an excellent choice, with a competitive interest rate of 18.5% p.a. for card purchases and 21.74% for cash advances – in line with industry norms. However, this card is particularly suited to businesses that aim to pay their balance within their statement period, much like Amex business credit cards.

Take a closer look at the standout features of the NAB Rewards Business Signature Card below:

Receive 100,000 bonus points

Looking for a generous bonus offer on a business credit card? The NAB Rewards Business Signature Card is currently offering 100,000 NAB Rewards Bonus Points when you spend $4,000 on everyday business purchases within 60 days of account opening. Don’t miss out on this exciting opportunity to earn rewards and enhance your business’s purchasing power!

3. American Express® Qantas Business Rewards Card

The American Express® Qantas Business Rewards charge card secures the third position in our list of best business credit cards due to its attractive benefits for frequent Qantas flyers. Unlike other business credit cards, the Amex Qantas Business Reward Card offers Qantas Points to Card Members specifically for their purchases made with the card, including everyday business purchases. Currently, in March 2023, the card offers 2 Qantas Points for every $1 spent on Qantas products and services, 1.25 Qantas Points for every $1 spent on everyday purchases, and 0.5 Qantas Points per $1 spent on government charges. This return is better compared to the Bendigo Bank Qantas Business Credit Card, which offers 1.6 Qantas Points (Qantas products) and 0.6 points (everyday spending).

As a charge card, the American Express® Qantas Business Rewards Card requires Card Members to pay their balance in full each month. However, American Express offers a Flexible Payment Option (FPO) that acts as a line of credit, allowing eligible Card Members to pay off a portion of their balance over time. If you’re unsure about your eligibility for FPO or your limit, speak to American Express.

Here are some key features of the American Express Qantas Business Rewards Card:

  • 150,000 Qantas Points Promotion + 20,000 Bonus Qantas Points: Earn 150,000 bonus Qantas Points when you spend $3,000 on eligible purchases within 2 months of approval. Offer valid until 4 April 2023. Terms and conditions apply.

No, pre-set spending limit

Get the flexibility and freedom to spend as much as you need with the American Express® Qantas Business Rewards Charge Card. With no pre-set spending limit, you can tailor your spending to your business needs, and as you make repayments, your available credit will adjust accordingly. Plus, with the potential to access up to $1M in unsecured funding over 12 months, you can fund your business growth with ease. Apply for the Amex Qantas Business Rewards Card today and enjoy the benefits of a charge card designed for businesses like yours.

4. NAB Low Rate Business Credit Card

If you’re a small business owner looking to reduce credit card costs, the NAB Low Rate Business Credit Card is worth considering. With no annual fees in the first year and a reduced annual fee of just $60 thereafter, you can save money while still enjoying the benefits of a credit card. In addition, this card offers a 0% interest rate for the first 12 months, providing you with the opportunity to pay off your business expenses without incurring any interest charges during the initial period. This makes the NAB Low Rate Business Credit Card an ideal choice for small business owners who want to keep their expenses in check.

Looking for a credit card that offers long-term savings for your business? The NAB Low Rate Business Credit Card could be the right choice for you. With zero annual fees for the first year and a lower annual fee of $60 per annum from the second year onwards, this credit card can help you save money on credit card costs. Not only that, but it also offers a 0% interest rate during the first 12 months, so you can pay off your business debts without any interest for the first year of approval.

“Even after the first 12 months, this credit card continues to be a great low-interest option with a current advertised rate of 13.25% p.a. This is below the industry average and applies not only to purchases but also to cash advances. So if you anticipate needing more time to pay off your balance, this credit card is a solid choice.

Other key features of the NAB Low Rate Business Credit Card include:

$0 annual fee in your first year

If you’re looking for a credit card that won’t break the bank, consider applying for the NAB Low-Rate Business Credit Card. As an added perk, you’ll enjoy a $0 annual fee for the first year of your membership upon approval. After that, you’ll only be charged a nominal annual fee of $60 for this business credit card.

5. American Express® Platinum Business Card

The American Express Platinum Business Card is the epitome of luxury in the world of business cards, making it a worthwhile investment despite the high annual fee. With unparalleled benefits, such as the highest point earning potential, complimentary cards for up to 99 employees, no pre-set spending limit, and up to 55 days to pay for purchases, this card is a must-have for discerning business owners. In addition to these benefits, Card Members also get exclusive access to over 1,400 airport lounges worldwide. As the cherry on top, new Card Members can enjoy a generous welcome offer of 200,000 Membership Rewards Bonus Points and a $500 Credit when spending requirements are met.

The American Express Platinum Business Card is the perfect fit for small businesses with high operational expenses and those that require multiple employee cards. It offers an impressive range of benefits, including the highest point-earning scheme, no pre-set spending limit, and up to 55 days to pay for purchases, making it an attractive option for businesses looking to manage cash flow. Cardholders also have access to exclusive perks like free entry to over 1,400 airport lounges worldwide. While the annual fee is high, the card’s enticing welcome offer of 200,000 Membership Rewards Bonus Points and $500 Credit, provided you meet the spending requirements, makes it a top choice for businesses looking to earn rewards.

No, pre-set spending limit 

Experience the freedom to charge what you need with the American Express Platinum Business Card, which comes with no pre-set spending limit. As you use the card and make timely payments, your spending power can grow over time. Plus, with the balance paid in full each month, you won’t have to worry about accruing interest charges on your purchases.

Using Business Cards as a Source of Financing?

Beyond business credit cards, explore alternative funding options to ensure your small business has access to the necessary funds. Consider a business line of credit from a small business loan provider, which offers flexibility and convenience with access to funds up to a predetermined credit limit.

Alternative to a Credit Card Business Loan:

best business credit card australia Platform

Looking for an alternative to business credit cards in Australia? Lend can assist you in comparing and finding the leading options for SMEs. Our sophisticated algorithm matches your borrowing requirements and business profile with the most suitable lenders. With a simple application process, Lend covers all types of secured and unsecured loans, including business lines of credit. Explore your options and find the right funding solution for your business with Lend.

SME: Business Credit Card or Personal?

Small business owners often turn to business credit cards for their flexibility and convenience in making purchases. Issued by banks or financial lenders, business credit cards are unsecured and offer a short-term facility. However, this convenience comes at a higher cost as they often have higher interest rates compared to secured business loans. Despite this, business credit cards can still provide a much-needed financial cushion for small business owners during unexpected drops in sales.

Business Credit Cards vs. Personal Credit Cards in Australia – 2023 Account Usage

Personal credit cards continue to be the preferred choice of credit for Australians with significantly higher usage as compared to business credit cards. According to data from the Reserve Bank of Australia, there were 12.39 million personal credit card accounts in September 2022, making 271 million purchases, compared to 782,000 business credit card accounts with just over 17 million purchases. However, it’s worth noting that the value of purchases made on personal credit cards was much higher at $25,089 million, while the value of purchases made on business credit cards amounted to $7,062 million. This highlights that while the number of personal credit card accounts is much higher, business credit cards can still provide an important financial tool for small businesses needing to make purchases.

The fierce competition in the business credit card market is driven by the fact that despite a lower number of cards in circulation, their usage per account and average transaction value of purchases is significantly higher. For SMEs looking to make higher-value purchases with a correspondingly higher credit limit, a business credit card is likely to be a better option. Choose a card that offers benefits that align with your business requirements and budget to maximize your returns.

Business credit card usage on the up?

In 2022, more Australian businesses have embraced the use of credit cards as a means of payment. The number of active commercial credit card accounts and cards has continued to increase every month, with September 2022 recording the highest number of accounts since June 2021. While there were 782,700 active business credit card accounts in September 2022, this is still a decline from pre-pandemic levels, which hit a peak of 1.3 million in 2017. Nonetheless, the upward trend in the popularity of business credit cards in Australia is evident. It remains to be seen how future adoption will be affected by the rising interest rates.

With 1,790,700 business cards in circulation in September 2022, there was an average of 2.3 business credit cards per business account. This indicates that a significant number of sole traders and SMEs are using business credit cards despite the mega-corporations that have hundreds or even thousands of commercial credit cards per account.

Business Credit Cards vs. Personal Credit Cards in Australia – Pros & Cons

Choosing between a business credit card and a personal credit card can be a tough call. Although both credit cards share similarities, there are key differences that should be considered. One of the primary differences is that business credit cards generally have higher credit limits compared to personal credit cards, making them a suitable option for business owners who make significant purchases regularly. Business credit cards also offer various types of rewards, including travel points and cashback. On the other hand, personal credit cards have capped interest rates and fees, while business credit cards don’t. This means that business credit cards may have higher interest rates, but it’s worth noting that some, like the NAB low-rate business credit card, offer lower interest rates than personal credit cards.

Types of Business Credit Cards

1. Low-rate business credit cards

Looking for a credit card with low-interest rates and no or low annual fees? A low-rate business credit card might just be what you need. This type of credit card is ideal for start-ups and businesses with low income or limited funds. Despite having no reward programs or perks, low-rate cards offer the benefit of lower interest rates and annual fees, as well as increased interest-free days in some cases.

2. Rewards business credit cards

Rewards business credit cards are an excellent option for businesses that want to earn rewards for their credit card spending. With a high spending power, businesses can enjoy various rewards, such as cashback offers, discounts, and even free travel bookings. These rewards can help businesses offset their expenses or even save money on future purchases.

Business Credit Cards vs Business Charge Cards

Business credit cards offer flexibility in payment options, allowing businesses to pay off their balance in full each billing period or carry a balance and pay interest charges. However, credit cards come with a fixed limit on how much your business can spend. On the other hand, business charge cards generally have no fixed limit, making them a suitable option for larger purchases. However, it is important to note that the balance of a business charge card must be paid in full each billing period, usually within 55 days. Providers like Amex offer a ‘Flexible Payment Option’ for charge cards, acting as a line of credit that allows a portion of the balance to be paid after the statement period.

Using Your Business Credit Card for a Cash Advance

If you need to take a cash advance on your business credit card, be prepared for higher fees. Cash advances should only be considered as a last resort when there is no other way to pay off debts directly with a credit card. However, this situation is unfortunately not uncommon for many SMEs. A small business loan may be a better option for businesses looking to pay off ATO debt, suppliers, and other expenses. Multi-purpose business loans can be used for virtually any business expense.

The most common form of cash advance is withdrawing funds at an ATM using your credit card. However, credit card issuers also consider other types of transfers, such as buying foreign currency, transferring funds to a bank account, and loading gift cards, as cash advances. It’s important to keep in mind that these types of transactions can also result in higher fees.

When considering taking a cash advance with your business credit card, it’s important to note that interest begins accruing immediately, unlike regular purchases which have an interest-free period. The interest rate on cash advances is also higher, often exceeding 21% on business credit cards, in addition to a cash advance fee of around 3% of the cash advance value. While some credit cards may offer lower cash advance fees, 3% is the industry norm. SMEs are advised to use cash advances only as a last resort and explore alternative financing options such as small business loans to pay off debts or cover business expenses.

Final Take – Should Your SME Use Business Credit Cards?

best business credit cards australia

Compared to bank loans, it’s relatively easier for SMEs to get approved for a business credit card even if they don’t have a well-established credit history. Business credit cards are a great way to establish and improve your business credit score. Although you may be initially given a small credit limit, paying your balance on time can help boost your creditworthiness.

In today’s digital age, businesses are increasingly taking their operations online, and the number of vendors and suppliers that accept credit cards has skyrocketed. With a business credit card, entrepreneurs can conveniently do business with suppliers and vendors from anywhere in the world.

Find the perfect business credit card that suits your SME’s needs with our comprehensive guide to the best business credit cards in Australia. Whether you’re looking for a low-interest rate or rewards for your spending, our guide has got you covered. While charge cards offer excellent rewards, it’s important to keep in mind that they must be repaid in full each billing period. Credit cards and low-rate business credit cards also have their unique benefits.

In addition to business credit cards, SMEs can also consider a line of credit, which functions like an overdraft and only accrues interest when the facility is utilized. Many top-rated online lenders in Australia, like Prospa, offer lines of credit that can provide similar financing to a business credit card.

Are there alternatives to quick financing in Australia?

Absolutely! Small business loan providers can offer essential funding in as little as 24 hours after submitting your application. These lenders differ from traditional banks in that they don’t require you to present a comprehensive business plan or years of financial statements. You can simply sync your bank accounts online or share reports from your Paypal or point-of-sale software, which allows the lender to assess the risk. This streamlined approach to lending can make the process much more accessible for small business owners in need of quick access to capital.

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