Business credit cards are the most powerful instant cash option for small business owners. Entrepreneurs can buy equipment and supplies with these credit cards. They can make an urgent payment for it. Generally, banks offer higher credit limits compared to credit cards for individuals. Here in this article, we intend to explore the best business credit cards in India for small business owners.
Choosing the right business cards is a critical factor. Timely payment can enhance your credit limit. As well as bad payment history affects the CIBIL scores. Any individual having a business in India can apply for business credit cards. Annual turnover and the P/L account play an important role in getting business credit cards.
Table of Contents
Why Do You Need a Business Credit Card?
Before diving into the best business credit cards, let’s understand why having one is essential for entrepreneurs and business owners:
- Separation of Personal and Business Expenses: A business credit card helps maintain a clear distinction between personal and business expenses, simplifying bookkeeping and tax filing.
- Cash Flow Management: Business credit cards offer a credit line that can be crucial for managing cash flow, especially during lean periods.
- Employee Expense Control: For businesses with employees, issuing supplementary cards allows you to monitor and control their spending.
- Rewards and Benefits: Many business credit cards offer rewards such as cashback, air miles, or discounts on business-related expenses, providing additional value.
List of 7 Business Credit Cards In India
1. HDFC Business Regalia Credit Card
HDFC’s Business Regalia Credit Card is known for its travel perks and rewards program. It’s an excellent choice for businesses with significant travel expenses.
- Complimentary Priority Pass membership for airport lounge access.
- Rewards program with accelerated points on business-related expenses.
- Fuel surcharge waiver.
- Concierge services for travel and lifestyle assistance.
2. ICICI Bank Business Advantage Credit Card
ICICI Bank’s Business Advantage Credit Card combines international usability with valuable insurance coverage and rewards, making it a versatile choice.
- Low foreign currency markup fee for international transactions.
- Comprehensive insurance coverage, including air accident insurance and purchase protection.
- PAYBACK Rewards program.
- Discounts on dining and entertainment.
3. SBI Corporate Credit Card
SBI’s Corporate Credit Card is designed to streamline expense management for businesses. Its flexible features are particularly useful for companies with numerous employees.
- Customizable spending limits for employees.
- Online spend management tools.
- Comprehensive expense reporting.
- High cash withdrawal limit.
4. Axis Bank Corporate Credit Card
Axis Bank’s Corporate Credit Card is designed for businesses seeking precise control over expenses and streamlined reporting.
- Robust expense management tools.
- Specialized reporting for travel and entertainment expenses.
- High cash withdrawal limit.
- Insurance coverage for cardholders and employees.
5. Kotak Corporate Wealth Signature Credit Card
The Kotak Corporate Wealth Signature Credit Card stands out for its substantial reward points and comprehensive travel benefits, making it an excellent choice for businesses with diverse spending needs.
- High reward points for spending in specific categories.
- Complimentary airport lounge access.
- Fuel surcharge waiver.
- Dedicated corporate helpdesk.
6. American Express Platinum Corporate Card
The American Express Platinum Corporate Card is tailored for business travelers. Its airport lounge access, travel insurance, and rewards program make it a valuable companion for frequent flyers.
- Exclusive airport lounge access for the cardholder and one supplementary card member.
- Comprehensive travel insurance coverage.
- Membership Rewards program offers points on every transaction.
- Dedicated corporate support services.
7. HDFC Business MoneyBack Credit Card
The HDFC Business MoneyBack Credit Card is a popular choice among business owners in India. It offers a range of features and benefits tailored to meet the financial needs of businesses. Here’s an overview of what you can expect from this card:
- Enjoy savings on fuel expenses with a fuel surcharge waiver at select fuel stations across India. This feature can be particularly beneficial for businesses with significant travel requirements.
- The card offers an interest-free credit period, giving you the flexibility to make purchases and pay your bills without incurring interest charges if the outstanding balance is paid within the specified period.
- The card provides options to convert high-value purchases into EMIs (Equated Monthly Installments) or avail of loans against the credit limit, helping you manage your cash flow efficiently.
Choosing the right business credit card can significantly impact your business’s financial management and growth. Each of the credit cards listed here offers unique features and benefits, making them suitable for different business needs. Before selecting a card, carefully assess your business requirements and spending patterns to find the one that aligns best with your goals. Remember to read the terms and conditions, fees, and interest rates associated with each card to make an informed decision.
More on Credit Cards:
Key Features of Business Credit Cards in India
When considering a business credit card for your needs, it’s essential to understand the key features that can make a significant difference in your financial management. Here are some common features of business credit cards in India:
a) Expense Tracking and Reporting
Most business credit cards offer tools for tracking and categorizing expenses. This simplifies financial record-keeping and aids in tax preparation.
b) Rewards and Cashback
Business credit cards often provide rewards points, cashback, or discounts on specific categories of business spending, such as travel, dining, or office supplies.
c) Lounge Access
Some premium business credit cards grant access to airport lounges, making business travel more comfortable and convenient.
d) Fuel Surcharge Waivers
Many business cards offer fuel surcharge waivers, reducing the cost of fuel for business-related travel.
e) Interest-Free Period
Business credit cards typically come with an interest-free period during which you can repay your outstanding balance without incurring interest charges.
f) Credit Limit Flexibility
You can often set individual credit limits for employees with supplementary cards, helping control spending.
g) Online Account Management
Easy online access to your card account allows you to monitor expenses, pay bills, and download statements at your convenience.
h) Insurance Benefits
Some business credit cards provide insurance coverage for travel, accidents, or purchases made using the card.
i) Zero Liability on Lost Cards
Business credit cards generally offer protection against unauthorized transactions if the card is lost or stolen.
j) Employee Cards
Business owners can issue supplementary cards to employees, making it easier to track company spending and manage expenses.
k) Flexible Payment Options
You can choose to pay the minimum amount due, the full outstanding balance, or any amount in between, depending on your cash flow.
l) EMI Options
Convert large transactions into manageable monthly installments with EMI options offered by many business credit cards.
m) Business Loans
Some business credit cards offer revolving credit facilities, acting as a short-term loan for your business needs.
n) Overdraft Facility
A few business credit cards come with an overdraft facility, providing a safety net for emergencies.
o) Customer Support
Access to dedicated customer support for business credit cardholders ensures quick resolution of issues.
p) Global Acceptance
Many business credit cards are accepted worldwide, facilitating international business transactions.
These key features can vary among different business credit cards in India. When choosing the right card for your business, consider which features align best with your specific needs and financial goals.
Frequently Asked Questions
What are the Documents Required for Business Credit Cards
Different banks demand different types of documents according to their own criteria. It also depends on your form of organization. Such as LLP or Pvt. Ltd or OPC. However, here we have listed some of the common documents that are required for applying for business credit cards in India.
- Identity Proof
- Age Proof
- Residential Address Proof
- Income Proof, generally profit & loss account, and balance sheet
- Trade License
- MOA in the case of the ownership pattern is more than one.
What are the eligibility criteria for obtaining a business credit card in India?
Eligibility criteria can vary among banks and card issuers, but typically, you should have a registered business or be a self-employed individual with a steady income. Requirements may include a minimum annual income, a good credit score, and documents supporting your business’s existence.
How does a business credit card differ from a personal credit card?
A business credit card is designed for business expenses and offers features tailored to business needs, such as expense management tools, employee cards, and rewards for business spending. Personal credit cards are intended for individual use and may not have these specialized features.
Are there any tax benefits to using a business credit card?
Yes, using a business credit card can simplify tax reporting. It helps keep personal and business expenses separate, making it easier to claim deductions and credits on business-related expenses during tax filing.
What should I consider when choosing a business credit card for my startup?
When selecting a business credit card for a startup, consider factors like annual fees, interest rates, rewards that align with your spending patterns, and the card’s flexibility in managing employee expenses. Additionally, look for cards that offer introductory bonuses or rewards tailored to startup expenses.
Can I get multiple business credit cards for different business needs?
Yes, you can hold multiple business credit cards, and it can be advantageous for businesses with diverse spending requirements. Just be sure to manage them responsibly and use them according to your business’s financial strategy.
Is it necessary to have a good credit score to apply for a business credit card?
While a good credit score is generally preferred, some banks offer business credit cards for startups or individuals with average credit scores. However, having a better credit score can lead to more favorable terms and higher credit limits.
What are the responsibilities of a supplementary cardholder on a business credit card?
Supplementary cardholders, often employees, can make transactions using the card. However, they should adhere to company spending policies and submit expense reports as required. The primary cardholder retains control and is responsible for settling all charges.
How can I maximize the benefits of my business credit card?
To maximize benefits, use the card for eligible business expenses, pay bills on time to avoid interest charges, and keep track of expenses using the provided tools. Take advantage of rewards programs and consider cards with rewards aligned with your business’s spending habits.
Can I upgrade or change my business credit card later?
Yes, many banks allow cardholders to upgrade or change their business credit cards based on evolving business needs. Contact your card issuer to discuss options and potential fees associated with upgrades or changes.
How can I protect my business credit card from fraud?
To protect your business credit card from fraud, regularly monitor transactions, set spending limits for employees, and report any suspicious activity to your card issuer immediately. Keep the card secure and educate your employees on safe card usage practices.