Does Your Small Business Need a Credit Card? Exploring the Benefits and Considerations


A business credit card is like a special tool for managing business expenses. It’s similar to a personal credit card but made for businesses.

6 Important Features and Benefits of a Business Credit Card

1. Separate personal and business expenses: As a business owner you can use a business credit card to keep your business expenses separate from personal expenses.

2. Build business credit: Using a business credit card responsibly helps establish a credit history for the business. This can be helpful when applying for loans or financing in the future.

3. Track and report expenses: Most business credit cards provide detailed monthly statements and reporting features. This makes it easier to keep records and manage finances. It also gives insights into spending patterns.

4. Manage employee cards: Business credit cards often allow additional cards to be issued to employees. Business owners can set spending limits for each card, monitor employee spending, and receive consolidated statements for easier expense management.

5. Rewards and benefits: Many business credit cards offer rewards programs tailored to business needs. These rewards can include cashback on business expenses, travel rewards & lounge access, or discounts on specific business-related purchases.

Some cards also offer perks like travel insurance, purchase protection, or extended warranty coverage.

6. Access to credit: Business credit cards provide a line of credit that businesses can use for purchases and to manage cash flow when funds are limited. But the business needs to use credit responsibly and pay off the balance each month to avoid high-interest charges.

3 Precautions Small Businesses Need to Exercise When Using Credit Cards

1. Debt management

Small businesses should use credit cards responsibly and avoid accumulating excessive debt.

It’s essential to pay off the balance in full each month or make timely payments to avoid high-interest charges and potential financial strain.

2. Cost of credit

Credit cards may have annual fees, transaction fees, and higher interest rates. As a small business owner, you should compare the costs and benefits of different credit cards and choose the most suitable option.

3. Creditworthiness

Small businesses may face more stringent requirements when applying for a credit card compared to individuals. Lenders may consider factors such as business income, credit history, and the personal credit of the business owner when determining eligibility.

When applying for a business credit card, Banks consider the creditworthiness of the business and also the personal credit history of the business owner.

Before applying it’s important to compare different card options, including their terms, fees, interest rates, and rewards programs. Finally, choose the card that best suits the needs of your business.

Top 3 Credit Card For Small Businesses in India

#1. The HDFC Bank Corporate Premium Credit Card

HDFC Bank Corporate Premium provides benefits like earning reward points for every business transaction. One of the reasons it is popular is that it has no fees. The card also offers travel benefits.

With this card, you can earn 5 reward points for every business transaction of just Rs. 150. The points can be redeemed for things like booking air tickets, hotels, and even miles.

In addition to the reward points, the card provides other benefits such as a fuel surcharge waiver, corporate liability waiver, and more.

HDFC Corporate card is designed to make corporate travel more premium and it also comes with insurance benefits. Here are some features of the card:

  • Enjoy 20 complimentary access to domestic airport lounges
  • Have 6 complimentary access to international airport lounges
  • Benefit from greater savings, reconciliation, and reporting tools
  • Get a 1% fuel surcharge waiver.

HDFC Bank Corporate Premium Credit Card is a good for corporate customers to earn  rewards, travel perks, and useful tools for managing expenses.

#2. The ICICI Bank Business Advantage Black Card

The ICICI Bank Business Advantage Black Card helps businesses save more on their expenses. You can earn 1% cashback on various things like travel, car rentals, professional services, and other expenses.

Additional benefits on the card include complimentary access to domestic airport lounges, which is great for relaxing during your travels. It also comes with 24X7 concierge services to assist you with various tasks.

The card provides zero liability protection, meaning you won’t be held responsible for unauthorized transactions. Additionally, it offers a fuel surcharge waiver, saving you money on fuel costs.

  • Get 2 complimentary domestic lounge access passes.
  • Benefit from annual and renewal fees waiver based on your spending.
  • Receive personal air accident death insurance cover of up to 75 lacs and many other benefits.

Overall, the ICICI Bank Business Advantage Black Card is a beneficial card for businesses. It helps you save money with cashback rewards, provides access to airport lounges, and offers other valuable benefits like fuel surcharge waiver and insurance coverage.

#3. American Express Corporate Card

American Express Corporate card is a reward credit card designed for businesses. It offers benefits like earning reward points and provides helpful tools for managing costs and expenses.

With Amex Corporate you can earn reward points for various types of spending. For every Rs. 100 spent on fuel, telecom, utilities, and insurance, you earn 1 Membership Rewards Point. For all other spending, you earn 1 Membership Rewards Point for every Rs. 50.

The card also comes with additional benefits such as complimentary lounge access at international lounges. It also offers discounted access to domestic lounges, making travel more comfortable.

Using the @Work feature, you can efficiently manage your expenses and develop effective strategies. The card also provides Zero Liability protection, ensuring that you won’t be held responsible for unauthorized transactions. Additionally, it offers various insurance benefits for peace of mind.

Here are some features of the card:

  • Benefit from Business Travel Accident Insurance and Travel Inconvenience Insurance. Enjoy 2 complimentary lounge access in a 12-month period with the Priority Pass Programme.
  • Get discounted access to domestic airport lounges.

In summary, the American Express Corporate card is a rewarding card for businesses. It helps you earn reward points, provides expense management tools, and offers various insurance benefits. The card also makes travel more comfortable with lounge access and discounts at airports.