Business credit card: Features, eligibility, fees and how it works

Mint

2 days ago

Managing spending is crucial for freelancers, small businesses, start-up founders, and employees in growing companies. Business credit cards allow spending management for business-related expenses with added features unavailable with normal personal cards. In this article, we will look at the definition, benefits, guidelines for use, and frequently asked questions about business credit cards in India.
A business credit card is one type of credit facility that is provided specifically for business related expenses. Business credit cards are used to keep business funds separate from personal usage so they can organise daily activity including employee expenses, software or digital subscriptions, office supplies, travel booking, and vendor payment. Company revenue or turnover.
PAN and GST registration.
Owner or business credit worthiness. Increased credit limits: Business credit cards can accommodate large transactions or bulk purchases as they tend to go beyond personal cards when it comes to their applicable credit limit. Accurate expense stage & tracking: Business credit cards make the process of expense reporting easy with the integrated account software, downloadable reports and categorisation of transactions to make tracking expenses more effective. Employee card options: Earn private control on employee expenses drives through the availability of further card options for team members with setting different credit limits. Benefit & rewards: Business credit cards catered towards your needs, like enhanced travel features or extra fuel rebates, other possible savings via specific business tools.
Business credit cards
Annual fee
HDFC Biz Black Metal Edition Credit Card
₹ 10,000 + applicable taxes.
HDFC Biz Power Credit Card
₹ 2,500 + applicable taxes.
Axis Bank Business Supreme Master Credit Card
₹ 1,500 + applicable taxes.
ICICI Bank Business Advantage Black Card
₹ 1,500 + applicable taxes.
YES First Business Credit Card
₹ 999 + applicable taxes.
Kotak Biz Business Credit Card
₹ 499 + applicable taxes.
Note: Readers are advised to check the relevant bank's website for the latest updates as interest rates, fees & charges are subjected to change.
It is technically possible but extremely discouraged. When you mix personal and business expenses with a business credit card it will make it difficult to distinguish between personal and company transactions: When it is time to do your tax return.
It creates discrepancies with bookkeeping.
It may also be against their card issuer's policy.
It could adversely affect your company's credit rating.
If you mix spends, this could result in fines or lost deductions if you are audited - it is best to maintain financial stricter rules and only use personal credit cards for purchases. Grow a business' credit score and facilitate cash flow management.
Helps track employee spending.
Provides access to vendors special offers.
Provides financial transparency for taxes and audits. Have your business information ready: GST, PAN, ITRs.
Understand the repayment and fee terms.
Choose cards with features suited to your business.
Check statements regularly for fraud and scams.
In conclusion, business credit cards are a way to grow, manage, and gain visibility in business! You can increase cash flow, reduce payment hassle, and solidify the financial base for your business by picking the right card, and using it wisely.
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Disclaimer: Mint has a tie-up with fin-techs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.