4 ways you can leverage a business card for company credit in 2024
An American Express Platinum Business Card can assist your company in a number of ways. We show you how.
Sponsored by the American Express Platinum Business Card. Earn 250,000 Membership Rewards Bonus Points when you apply by 25 March 2025 and spend $12,000 on eligible purchases within 3 months of your approval date. Available for new American Express Card Members only.
As your business grows and expands, it's crucial to have the right financial tools in place to help support your journey.
One particularly useful tool for supporting your company is a business card.
In fact, the right business card can be a highly effective credit source for your everyday expenses.
Whether you're securing your cash flow, leveraging extended payment terms and no pre-set spending limits or looking for a way to get rewarded for everyday expenses, a business card can offer a range of solutions.
Today, we take a look at how these features can benefit your company.
Cash flow and credit
Securing cash flow is essential for any business owner.
Even if you're running a successful company with plenty of invoices being sent out – well, there can still be a gap in when you actually get paid and when you need to make payments.
The good news is that having access to a business card can streamline this process and help bridge these gaps.
For example, the American Express Platinum Business Card gives you up to 55 days to pay for purchases.1
So whether it's unlocking payroll, making a major business purchase or funding a client event, you can be confident you've got the funds you need.
By knowing you've got access to funds through your card, you can make key decisions for the company more effectively.
Just as importantly, having a business card allows you to clearly separate personal and business finances.
For yourself – and for your accounting team – this can make reporting much easier!
Equipping employees with cards
The American Express Platinum Business Card allows you to equip your team with cards as it grows.
With the American Express Platinum Business Card, you can get up to 99 Employee Cards with no extra fee.2 This can help you to streamline expenses, by charging them all to a single account.
Extended payment terms
Ordinarily, charge cards don't apply interest the way a credit card does.
This is because you're meant to clear the whole balance by the statement due date.
But with the American Express Platinum Business Card, you can manage your repayments further using Flexible Payment Option (FPO).3
FPO allows you to pay off a portion of your balance (up to your FPO limit) over time, and carry any unpaid amount to your next month's balance. Interest charges may apply.
Rewards
As every business owner knows, you need to spend money to make money. Everyday expenses are part of the cost of doing business.
But there are ways to get rewarded for those everyday expenses, too. With the right rewards, you'll be able to offset company costs, entertain clients with less expense and recognise your staff.
Selecting the right business card can help with this process.
Earning reward points – and possibly getting some extra points as a sign-up bonus – can help you offset your costs.
To point to an example, the American Express Platinum Business Card allows you to earn Membership Rewards Points on everyday spend.4
Membership Rewards Points earned can then be used for a range of purposes.
Using points for flight and accommodation rewards can be an excellent way to offset business travel expenses.
Entertainment and dining experiences can also be used as ways to entertain clients or to recognise staff internally.
And of course, points can also be used to directly offset the cost of your bill at the end of each payment cycle.5
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Read more…Applying for a business card
Before you apply for a business card, there are a few things you need to have in place.
We've used the American Express Platinum Business Card as an example for this list.
Most charge cards on the market will have similar terms and conditions, but it's always important to check them on an individual basis before you apply.
❑ Valid ABN – You can't get a business card if you don't yet have a formal business! So ensuring you have an ABN in place ahead of time is key. This is also an important part of distinguishing your business from a hobby, too.
❑ GST registration – Some business cards will require you to be registered for GST before you can apply for them. This demonstrates to the card provider that your company is likely generating above a certain amount of revenue (more on that in a sec) and is prepared for future growth.
❑ Minimum business income/turnover – To apply for a American Express Platinum Business Card, you must have annual business revenue of $75,000 or more.
❑ Good credit history – To qualify for most types of cards, business or otherwise, you'll generally need to have a good credit score. You can check your current credit score right here on Finder.
❑ Aged 18 years or over – Signing up for a business card is a form of contract, so you'll need to be over 18.
❑ Australian citizenship or permanent residency – To apply for a business card, you'll need to have Australian citizenship or permanent residency in Australia. You'll need to provide appropriate documentation for proof, too.
Learn more about the American Express Platinum Business Card
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