How to choose a business credit card

A business credit card can be useful in providing a convenient means of making everyday business purchases, managing expenses and, in some instances, earning rewards. It also comes handy to keep personal and business expenses separate. Find out more about the benefits of a business credit card.

Business, including sole proprietors, freelancers, small businesses, large business owners, Australian companies and incorporated associations, can apply for a business credit card.

Learn more about how to apply online or speak to a NAB business banker.

Choose a business credit card that suits your needs

Low-rate business credit cards

A low-rate business credit card can help you to stay on top of business expenses. If you carry balance on your card from month to month, opting for low interest rate can typically save you money compared to other business credit card options.

Learn about the NAB Low-Rate Business Card.

Rewards business credit cards

Rewards business credit cards give you access to a range of products and experiences by redeeming points earned through spending. There are various rewards programs that you can choose from to suit your needs.

We offer the NAB Rewards Business Signature Card and the NAB Qantas Business Signature Card that can help you earn reward points.

Corporate credit cards

Corporate credit cards are most suitable for medium to large businesses who wish to manage cashflow and control business expenses. We offer several types of corporate cards ranging from plastic cards to virtual cards.

Learn more about NAB Purchasing and Corporate Cards.

Business charge card

Charge cards are the ideal business card for managing employee expenses. They need to be paid in full at the end of each month, which can help minimised interest cost.

Learn about the NAB Business Card.

How to select the right credit card for your business

When it comes to selecting the most ideal type of business card for you, it all depends on the priorities of your business.

For example, if you wish to maintain a statement balance, an interest-free credit card may work best. Alternatively, if you plan on traveling frequently, a business card associated with a frequent flyer program could be an excellent option to reduce the overall cost of air travel.

Assess the credit needs of your business

When assessing your business credit requirements, it makes sense to consider factors such as your everyday business expenses, who will be using the credit cards and for what purposes.

Importantly, factoring in your everyday business expenses can also assist in narrowing your choices. You should also consider the financial circumstances of your business, including how much you can afford to repay each month, in addition to any expected monthly cash flow shortages.

Understanding business credit card interest rates

The most obvious factor involves the different business credit card interest rates. A lower interest rate may save you money, but it’s important to keep in mind that benefits like interest-free days and fixed or variable periods can significantly change the formula.

The two main types of interest charged include:

Purchase interest

This is interest rate applied to purchases made on your business credit card(s) which is generally charged when you do not pay the full balance owing by the due date.

Cash advance interest

This is interest charged when you use your business credit card to access cash such as withdrawing cash from ATM or transferring funds from one credit card account to another. There are no interest-free days, and the interest is charged from the date the transaction was made.

When it comes to monthly repayments – you can either pay the full balance, the minimum repayment, or an amount somewhere between the two. Just remember, the more that is repaid, the less interest you are charged.

Please note, how interest gets calculated can differ between card providers and may change over time.

Compare credit card fees and charges

Understanding your annual spending can help decide whether a business credit card with an annual fee is the best option for you.

Fees and charges to consider include:

Annual fee

This fee type is paid annually, and the amount varies depending on the type of business credit card you use.

Late payment fee

If you miss the payable amount by the statement due date for your business credit card, you may be subjected to a late payment fee.

Cash advance fee

The cash advance fee is a one-off fee charged at the time of the cash advance transaction you made. This is often calculated as a percentage of the cash advance transaction or, when a set minimum fee is specified, the greater of that minimum fee or the percentage of the cash advance transaction will be charged.

Note that different cars providers will charge different fees and charges and it’s best to take the time to understand them.

See our business banking fees and charges for a breakdown on fees and charges on our business credit cards.

Access more benefits with a business credit card

Some business credit cards offer additional perks, like travel insurance, travel benefits, warranty protection or purchase protections. These features can be valuable, but they’re not essential for everyone.

If you plan to have a business rewards credit card, you could redeem points earned for purchases on gift cards, cashback, travel, rewards programs. Explore our latest offers and featured business credit cards.

Typically, cards with rewards have higher annual fees and interest rates than other card types.

Ready to compare?

Start your business credit card journey by using our business credit card comparison tool and find one that works for you and your business.