Top 5 small business credit cards to consider in 2024

Navigating the complexities of small business finance can be challenging, but choosing the right credit card can be a valuable asset. A well-selected business credit card offers flexible credit lines, rewards programs, and additional benefits that can contribute to your business’s success.

What are small business credit cards?

Small business credit cards are designed to provide entrepreneurs and business owners with access to funds specifically for managing their business expenses. These cards can be used for purchases such as office furniture, equipment, and electronics. Importantly, they are not intended for personal use and should only be used for business-related expenses.

Features and benefits of small business credit cards

Higher credit limits: Business credit cards typically offer higher credit limits compared to personal credit cards.

Quick access to funds: They enable businesses to address urgent expenses without delay.

Enhanced rewards: The cashback and rewards programs associated with business cards are generally more generous than those of regular credit cards.

Security: Business credit cards provide a safe and secure way to manage transactions.

Convenience: These cards can be used online via net banking, making purchases simple and efficient.

Eligibility criteria for small business credit cards

To qualify for a small business credit card, applicants must be operating a legal business, which can include a company, a small to medium-sized enterprise, a partnership, or a sole proprietorship.

Source: BankBazaar

Key features of best small business credit cards

1. IndusInd Bank Corporate Card

• Gain access to the Priority Pass program.
• Integration with ERP.
• You can customise fields for data reconciliation.
• You receive a 1% fuel surcharge waiver.
• You can track your spending by category.

2. SBI Platinum Corporate Credit Card

• Allows to easily control costs of business.
• Smart expense management feature.
• Complimentary insurance
• Global acceptance and 24/7 services.
• EMV cards.

3. Axis Bank Business Credit Card

• Cash advance and automated payments.
• Easy EMI options and loyalty rewards.
• Airport lounge access.
• Business savings schemes.
• Fuel Rewards and Waiver.

4. HDFC Corporate Credit Card

• Renewal fee waiver and fuel waiver.
• Global credit card.
• No liability for a misplaced credit card.
• Airport lounge access.
• Cashbacks for retail and overseas expenses.
• Smart pay and business savings facility.

5. Laghu Udhyami Credit Card

• The card provides a line of credit for the purchase of raw materials and other items, with interest rates based on the borrower’s profile and creditworthiness.
• The cardholder can take a loan of duration from 5 to 7 years.

What are business credit cards?

Business credit cards are specifically designed for company expenses rather than personal use. They help businesses manage costs more efficiently and offer benefits tailored to business needs. These cards enable employers to monitor and control employee spending, making it easier to manage finances.

Features of business credit cards

• Dual benefits: Business credit cards provide advantages for both employers and employees. For self-owned businesses, these cards help cardholders and the organisation alike by offering clear monthly spending insights.
• Secure transactions: They facilitate secure payments, eliminating the risks associated with cash handling. With just a swipe, businesses can manage expenses conveniently.
• Rewards: Many banks offer reward points, cashback, discounts, and exclusive offers on business credit cards. Cardholders can accumulate points redeemable for gifts, vouchers, and more.
• Online convenience: Business credit cards can be managed online through the bank’s portal, simplifying tasks like checking statements, paying bills, blocking cards, and filing disputes.
• Credit card statements: Monthly statements save time and allow for efficient expense tracking and budgeting, helping business owners monitor their spending effectively.
• Employee expense monitoring: Most business credit cards enable employers to set spending limits and track employee expenses, ensuring better control over company finances.

Reasons to choose a business credit card

1. Build a strong credit history: Using a business credit card is a highly effective way to establish a credit profile for your company.
2. Increased purchasing power: A separate business credit card enhances your access to credit for company expenses.
3. Easy expense tracking: Maintaining a clear distinction between personal and business expenses is crucial for corporations and limited companies, and a business credit card makes this simple.
4. Control over employee spending: Providing corporate credit cards to employees allows for effective expense management and monitoring.
5. Access to financial products and services: Business credit cards can facilitate growth, with many providers offering innovative tracking and management tools.

Eligibility for business credit cards

While eligibility criteria may vary by provider, some common requirements include:

• Age: Applicants must be at least 21 years old and not older than 70.
• Nationality: Applicants must be residents of India.
• Profession: Must be self-employed, a proprietor, or a partner in a partnership firm.

Required documents

To apply for a business credit card, you’ll need to provide certain documents for verification:

• Identity proof: Aadhaar card, PAN card, passport, driving licence, or voter ID.
• Address proof: Aadhaar card, PAN card, passport, driving licence, or voter ID.
• Age proof: Voter ID, passport, Aadhaar card, or birth certificate.
• Income proof: Latest three months of salary slips and a six-month bank statement for salaried individuals, or the latest income tax return with computation of income for self-employed individuals.

How to apply for a business credit card online

1. Visit the bank’s website: Go to the website of your chosen bank or lender.
2. Complete the application: Fill out the required details in the application form.
3. Get guidance: A bank representative will contact you to guide you through the process and collect necessary documents from your home.
4. Verification and approval: The bank will verify your details and documents. If everything checks out, they will approve your application and issue your credit card.

How to apply for a business credit card offline

1. Visit a branch: Go to your preferred bank’s branch.
2. Obtain the application form: Ask a representative for information about the business credit card and fill out the application form.
3. Submit documents: Provide the necessary documents to the bank.
4. Verification and approval: The bank will review your application. If satisfied, they will issue your credit card.

Source: PaisaBazaar

Key features of best business credit cards

1. ICICI Bank Business Advantage Black Credit Card

• Up to 1% cashback on qualifying domestic and foreign purchases.
• Savings on fuel surcharge at 1% (assuming monthly expenditure of ₹5,000 at HPCL Petrol Pumps).
• Joining fee reversal for spending ₹75,000 or more within 60 days
• Annual fee reversal for spending ₹7,50,000 or more during an anniversary year
• Personal air accident death insurance coverage of up to ₹75 lakh.

2. HDFC Business MoneyBack Credit Card

• Zomato Gold offers a year of complimentary membership and 5% cashback on telecom, electricity, government/tax, railway, hotels, dining, and taxi services.
• 5X reward points on fuel, capped at 1000 rewards per calendar month (applicable for the first year only).
• 2,500 credit card reward points for annual spending of Rs. 1.8 lakh or more in each anniversary year.
• 4 reward points for every ₹150 spent on online purchases, 2 Reward Points for every ₹150 spent on other costs (excluding gasoline).

3. Axis Bank My Business Credit Card

• Every three months, there are two complimentary trips to the airport lounge.
• Withdraw up to 30% of your credit limit from more than 1 million Visa ATMs.
• 1% fuel surcharge waived on all fuel transactions in India.
• 4 eDGE points for Rs.200 paid, 100 points for the first online transaction.
• For all transactions exceeding Rs.2,500, contact the bank to convert your large credit purchase into EMIs.

4. Citi® Corporate Credit Card

• Free access to domestic airport lounges.
• 2 reward points for every Rs.125 paid.
• Up to 15% off eating at participating restaurants.
• 1% fuel fee for fuel purchases at authorised IndianOil outlets.
• T&E spend management tool- Benefit from streamlined travel and entertainment expense reporting and the strategic advantages of process automation.

5. Yes Prosperity Business Credit Card

• 10,000 reward points for your first transaction within 30 days.
• Renewal benefit: 7,500 reward points each renewal.
• 4 reward points per ₹100 spent on travel agencies and tour operators, domestic airlines, and dining; 2 reward points per Rs.100 spent on all other categories.
• 50 lakh air accidental insurance in case of death due to a flying accident, and 15 lakh protection for medical situations while travelling overseas
• 1% gasoline surcharge waiver across fuel stations in India.

6. Kotak Corporate Gold Credit Card

• Fuel surcharge is waived for transactions between Rs. 500 and Rs. 3,000.
• Up to 48 days of interest-free credit.
• Tracking staff expenses by vendor.
• Redeem your reward points by calling the customer service helpline.

Choosing the correct small business credit card can have a big impact on your financial health and overall business performance. By carefully analysing criteria you can discover a card that meets your individual needs and objectives.

FAQs on business credit cards

What credit score is required for a business credit card?

Most business credit cards require good to excellent credit for approval. A score of 700 or higher is generally considered good, while a score of 800 or above is regarded as exceptional.

Is it difficult to obtain a business credit card?

If you have a decent credit score, obtaining a business credit card is usually straightforward. You can apply for one even if you don’t own a business. Business credit cards often offer more benefits and rewards compared to personal ones.

How long does it take to receive a business credit card?

Once approved, it typically takes 7-10 business days to receive your new credit card. Overall, the process can take about 14-24 business days from application to receiving the card, although this timeframe may be shorter if you receive immediate approval.

Do business credit cards check your personal credit?

Yes, when you apply for a business credit card, the issuer may review both your business’s history and your personal credit. This can involve a hard inquiry on your personal credit, which may temporarily lower your credit score by a few points.