A business lunch, an offsite, or a business trip would be a far more interesting idea if one got good deals and discounts, and one could surely grab them all using an official credit card for the business. With discounts on air tickets, hotel rooms, airport lounge access, etc., a credit card can come with many exciting offers, saving a lot of money.
A business credit card is a great tool for cutting expenses when on a business trip. Every credit card comes with its own unique features and schemes. Therefore, one must scan through the features and benefits of a card before taking a decision.
What Is a Business Credit Card?
It refers to a credit card that is specifically used for business expenses, including but not limited to purchasing inventory, office supplies, office furniture, and official travel, rather than for individual use.
An official credit card helps a business build its credit profile by enhancing future borrowing terms. Business cards are accessible to businesses of all sizes. From large companies to sole proprietorships, anyone in between is eligible for a business card.
Here�s What One Should Know Before Applying for a Business Card:
- Personal credit and business credit are vastly different from each other.
- It is not necessary to have a physical office space or several employees to apply for a business card.
- It is not a prerequisite for a business to be registered or incorporated.
- Business cards do not come with the same liability protections as personal cards. For instance, a personal credit card holder holds zero liability in case of fraud and gets a 21-day grace period to pay back the purchases. Also, a personal card owner receives the required notice in case of an increase in interest rates. This, however, is not offered to a business card holder.
- Business cards offer rewards tailored as per business expenses, such as travel rewards, cash backs, and welcome bonuses, to name a few.
- Business card applications require personal details of the business owner (like name, birthdate, address, Aadhaar number, etc.) along with business details (like business name, industry, employer identification number, if applicable, revenue system, annual turnover, etc.).
- Business cards often come with higher credit limits in comparison to personal credit cards.
- Business card holders may get credit cards for employees. A few employee cards may be provided for free by the issuers; however, some nominal fees might also be charged per card.
- Business card holders may get extended payment options with special terms to finance large purchase orders for the business.
What Are the Top 6 Business Credit Cards One Can Use?
The top 6 business credit cards are listed out below:
Volopay Corporate Cards
Volopay provides corporate cards that have been tailored to fit the needs of both growing as well as developed modern businesses. You can easily use Volopay�s corporate cards to eliminate the need for reimbursements, checks, or petty cash. Managing these cards is a breeze because Volopay cards come equipped with a highly advanced card management dashboard that gives you real-time updates and intricate control over how your cards are being used. You can use this dashboard to easily create, block, or freeze cards with just the click of a few buttons. Additionally, with Volopay corporate cards, you can also access an extremely flexible, interest-free line of credit.
These cards act as the ultimate payment tool that can be used to manage, track and control every single dollar that your company spends. This is because Volopay corporate cards come with a whole array of features that have been specifically designed to make company spending easier and more manageable.
Key Features
- You can obtain cards in both physical as well as virtual forms, depending on your business needs.
- Virtual card creation is almost instantaneous with Volopay.
- You can create an unlimited number of virtual cards for a variety of purposes, completely free of charge. This means you can create specific virtual cards for specific purposes including burner cards, gift cards, special vendor cards, and more.
- Physical cards come with online transaction controls that you can use to enable or disable cards from being used online and restrict them to only be used at POS machines.
- Physical cards also come with in-store card controls that you can use to enable or disable cards from being used at POS machines so they can only be used online.
- You also get Cross border transactions card control that you can use to restrict cards to only be used for domestic transactions.
- You get immediate notifications when your card has a low balance, thus reducing the probability of cards getting declined.
- Volopay corporate cards are also equipped with international ATM withdrawal capabilities.
- You can easily request funds in real-time from Volopay�s desktop or mobile application.
- All card funding requests go through an intensive approval workflow process that you can also customize according to your business needs.
- It is extremely easy to freeze, block, enable, or disable Volopay cards from the cards dashboard.
- Volopay corporate cards also come with subscription management features that you can use to create and assign unique virtual cards for specific vendors and subscriptions to make tracking spends in categories and payments for subscriptions easier.
- Your business can avail of an extremely flexible, interest-free credit line with Volopay corporate cards.
AMEX Platinum Travel Credit Card
Available at a joining fee of about INR 3500 (taxes excluded), the AMEX Platinum Travel Credit Card charges a renewal fee of about INR 5000 (excluding taxes). The card comes with exclusive features to enhance the lifestyles of its users. The go-to business credit card for all, this AMEX card provides exciting offers on air travel, hospitality, and accommodation.
Key Features
- Provides over 10,000 reward points to new members as a welcome gift. These points can be redeemed for a Flipkart voucher or the “Pay with Points” option in American Express Travel, worth Rs. 3,000.
- Gives you travel benefits or a Flipkart voucher worth INR 4,500 if you spend more than INR 1.9 lakhs.
- Against an expenditure of INR 4 lakhs, provides travel benefits or a Flipkart voucher worth INR 7,500.
- Offers eight complimentary visits to airport lounges annually (2 per quarter) across the country.
- Offers a Taj Experiences E-Gift Card worth INR 10,000 from Taj, Vivanta, and SeleQtions Hotels.
- Except for insurance, fuel, utilities, EMI conversion, and cash transactions, the card offers one reward point for every INR 50 spent.
SBI Platinum Corporate Credit Card
Designed with corporate clients in India in mind, the SBI Platinum Corporate Card stands on the Visa platform. Thereby, the cardholder can track the company�s expenses using the Visa IntelliLink tool. It comes with a set of unique features offered only to its loyal members.
Key Features
- SBI Platinum Corporate Credit Card is widely accepted at over 38 million outlets across the globe, of which 3 million are located in India. In addition, it can be replaced anywhere in the world.
- It allows for custom settings for spending limits for better money management, along with complimentary insurance.
- Provides a user-friendly interface and dashboard for real-time expense management.
- Provides travel insurance to the cardholders, wherein the sum assured for baggage loss is INR 75,000, INR 7,500/- for baggage delay, INR 12,500/- for loss of a passport overseas, and INR 15,000/- for a flight delay.
HDFC Bank Diners Club Black Credit Card
Available with a joining fee of INR 10,000 (excluding taxes), the HDFC Bank Diners Club Black Credit Card continues to offer many privileges to its users. Notably, if you spend more than INR 5 lakhs per year, the bank will waive the renewal fee.
Key Features
- Offers complimentary annual memberships for Club Marriott, Amazon Prime, Forbes, Dineout Passport, Times Prime, and MMT BLACK.
- For a monthly spend of INR 80,000, the card offers complimentary vouchers for the cult. fit Live, Ola Cabs, TataCliQ, and BookMyShow.
- Offers five reward points for every INR 150 spent.
- One reward point is equivalent to INR 1.
- Provides exclusive discounts at leading salons and spas, gyms, and other wellness retreats.
- Allows you to book Singapore Airlines (KrisFlyer Miles) and Club Vistara flights using reward points in Air Miles, where one air mile equals one reward point.
- Offers up to six complimentary accesses to 1,000+ lounges across the globe for primary as well as add-on members.
- Allows redeeming up to 70% of the total booking value using reward points.
- Covers INR 2 crores in air accident insurance, INR 50 lakhs in overseas medical emergency insurance, INR 55,000/- in travel insurance for baggage delay or loss (limited to $ 10 per hour for a maximum of 8 hours), and INR 9 lakhs in credit liability.
Citi Corporate Credit Card
As exclusive as it can be, the Citi Corporate Credit Card provides a streamlined expense report for entertainment and travel. With a high-powered Visa Intellilink Spend Management System, this business credit card offers access to tailored reports for enhanced visibility and control. In addition, it helps identify top suppliers for better negotiation.
Key Features
- Offers complimentary access to domestic airport lounges.
- For every INR 125 spent, you earn two reward points.
- Citi� Corporate Credit Cardholders can receive up to 15% off dining at select restaurants.
- Provides a 1% fuel surcharge at authorised Indian Oil outlets across the country.
- Allows easy access to statements online for all member corporate cards, along with the facility to make a single payment for all cards through NEFT, cheque, or RTGS.
Axis Bank Miles and More Credit Cards
There are two types of Axis Bank Miles and More Credit Cards: Select Credit Card and World Credit Card.With some of its irresistible travel discounts and mile rewards, this card is the ultimate travel card for all business trips and transactions.
Key Features
- With automatic payments enabled, paying utility bills becomes easy.
- The never-expiring miles can be redeemed only through Miles & More.
- Grants miles on the first-ever transaction made.
- Provides a 24×7 dedicated concierge desk for assistance with restaurant reservations, flight bookings, exclusive events, and much more.
- Installed with a chip and pin facility, the card allows secure spending and comes with unparalleled protection.
- With joining fees of INR 3,500 (excluding taxes), the Axis Bank Miles and More World Credit Card charges the same amount for renewal.
- The Axis Bank Miles and More Select Credit Card charges about NR 10,000 for joining (excluding taxes) and a renewal fee of NR 4,500 (excluding taxes).
- Offers 15,000 miles as a welcome bonus, 4,000 award miles as an annual bonus, and eight complimentary visits to select airport lounges per quarter.
- Six award miles are given for every INR 200 spent.
- With its automatic bill payment feature, this card has eased the challenge of remembering due dates and bill payments.
Now that there�s plenty of information on the top business credit cards in India, one can easily choose one for the company�s precise requirements.
Why Go for a Business Credit Card Instead of a Personal One?
A business card offers a host of benefits, in cash as well as kind. Often, the hidden benefits aren�t spotted easily. However, here are some reasons why choosing a business card would be a great idea.
A business card helps establish business credit, which both banks and lenders consider if the business owner ever applies for a loan for his or her company. For significant expenditures, some cards provide short-term financing.
- Easy to maintain separate accounts
Having a business card helps organisations streamline their expenses, especially since small businesses can separate personal expenses from business expenses. This further aids in bookkeeping for tax purposes.
- Building a good credit history
One of the best ways to build a good credit history and reputation for a business is to have a business card.
- Gaining access to credit
A separate credit card for business expenses allows one to expand their purchasing power. A good credit history allows easy access to business loans from banks and other lenders in the market.
- Receiving a host of benefits and increasing profits
Banks often offer multiple advantages to business card holders. These special perks and benefits help reduce business expenses, thereby increasing profits.
- Keeping a tab on employee spending
A business card allows one to gain effective control by keeping tabs on employee spending.
- Accessing various financial products and services
Many business credit cards on the market come with added benefits, including advanced technology for businesses and tracking tools.
FAQs on Business Credit Cards
How many types of credit cards are there?
There are approximately seven different types of credit cards.
What are the different types of credit cards?
- Rewards credit cards
- Low-interest credit cards
- credit cards for debt consolidation
What are the various categories of credit cards?
- Business credit cards
- Travel credit cards
- Secured credit cards
- Cashback credit cards
- Student credit cards
Which is the best type of credit card?
Rewards credit cards and low-interest credit cards are often recommended.
Conclusion
Living in the era of startups, one must be wary of credit situations. A new business owner must be cautious about using a credit card. It is not advised to spend money that has not been earned yet or is in the bank. A small credit situation for a business can lead to disastrous consequences at a later stage.
To avoid such a situation, many banks today have terms and conditions that prohibit the use of a business credit card for personal expenses. In addition, a business owner must put a cap on the expenses per month. If used correctly, credit cards can prove to be a man�s best friend as they aid in earning rewards, building business credit, and keeping overhead low.
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