Credit card for small business startup
Business Credit Cards

Business Credit Cards for Startups: What You Should Know

If you’re wondering how to get a business credit card for a startup, here’s a guide that shows you the options and what to consider when making your choice. 

There’s no denying the Australian technology startup sector is booming. In Q2 2021, over 750 million Aussie dollars were invested into the Fintech industry, putting Australia on the map globally as a prime destination to create and run a business, especially in the technology sector. 

This environment invites those who look to take advantage of market opportunities, with banking and Fintech businesses dominating the startup space. However, while being innovative businesses themselves, not all of these startups are making the most of digital payments for everyday spending and subscription services.

Modern businesses, especially startups, should use a corporate card and spend management solution that understands their business and the sector they operate in. Even better are cards and solutions that are purpose-built for high-growth businesses, with options for multiple cards and various credit limits. 

If a startup business uses an institutional credit card issuer, they aren’t taking advantage of what modern lenders offer their clients with managing their expenses. Companies that specialise in lending to the startup sector realise that a streamlined application process, digital card integration or individualised spending limits for staff all work together to make doing business a simpler and more productive process. 

In an industry that is set to explode, put your business in a position to succeed by knowing how to select the best credit card for a small startup business and how it can work for you. 

How the Best Business Credit Card for Startups Work

Archa has tailored its business credit cards to support fast-growing companies spend less time on financial admin. Business owners and financial managers are empowered to supply cards to employees and set individualised limits while being able to oversee spending as it happens. 

We know that in the technology and startup space, nearly all business is done online. Archa won’t slow you down with a drawn-out application process; we have built a platform where your oversight of expenses is complete and in real-time. Free up time at the end of the financial year without any messy paperwork and eliminate the entire reimbursement process with a business credit card.

By using a business credit card, you not only empower your employees with spending power, adding to positive company culture, but you also protect any potential personal liabilities they would have on personal spending. This will not only remove a concern for your employees. But it will set your business up to better retain staff in the future. Who doesn’t like to feel valued at work? From the company perspective, you are better protected through zero liability protection services that business credit cards offer as standard. Realistically, when it comes to employee spending, using business credit cards gives you the best of both worlds. 

If you are a business that has international payments, Archa does not charge foreign transaction fees. Being a charge card, Archa can avoid charging monthly interest on spending — the total spent by the business is due at the end of each month by Direct Debit. Likewise, there aren’t any large annual fees that hit you once a year. Instead, Archa uses a monthly subscription fee, a more manageable way to pay for credit. These features work together to focus your business expenses and allow you to budget accordingly, so you always have access to cash flow. 

You can be satisfied in knowing exactly how your money is being spent while knowing your money is secure in your hands and the hands of your employees. 

Applying for the Best Startup Credit Cards

We know that the application process for startup business credit cards can be a drawn-out and intrusive process. The best credit card for startups will simplify it and offer a quick application process with no personal credit check and a need for only a small history of trading. 

A big concern that holds a business back from applying is how much history they have to provide. At Archa, we only need 6 - 12 months’ history to approve you to start using our spending solution, giving you access to cards, credit and oversight on how you spend. Businesses with no credit history need not worry, only the recent financial history is needed to be approved. When most business credit cards require 12 to 24 months of financial history, Archa prioritises putting you in business and only requires the most recent history of transactions. 

Probably more appealing to business owners is that Archa doesn't delve into the personal history of their applicant. There is no added or undue strain put on your personal credit score through a check — approval is based solely on the trading history of your business. While a limited history of payments might result in a lower credit limit, it won’t limit your ability to access business credit.  Archa makes it easy to apply for a business credit card without any personal risk.

We pride ourselves on our quick and painless onboarding process. There are a million things to worry about day-to-day, we want to get the application process out of the way as quickly as we can, so you can start doing business. 

Best business credit cards for startups

Using a Corporate Credit Card for Startups to Eliminate Reimbursements

As a startup, so much of your business relies on your employees being able to make decisions and act quickly, so spending easily is imperative. This could be making sure your business has everything it needs to run, but more commonly it will include travel expenses and meetings. It could even be as simple as knowing someone from the office can go on a coffee run. 

A company credit card will let you have this culture of responsible spending while taking away any need to go through reimbursements. It will save your financial manager hours at the end of each month, not needing to go through receipts and reimbursement forms. It will also relieve any personal financial stress employees may feel about having to spend using their personal credit. Less stress and less overall work — a business credit card solution for reimbursements seems like a no-brainer.

Business credit cards also differentiate themselves from the likes of debit cards in a few ways. One is there is no strain on your bank account, you can be confident in paying for all your bills and subscriptions without worrying about stretching your bank account balance. Similarly, with the cards issued to employees, you won’t need to go through the process of preloading money on them every month — another time-saver that’s worth considering. 

Removing reimbursements as a time-drain and having oversight over employees' spending make company credit cards worth the price of admission. Staff who feel trusted and empowered at work are much more likely to stay at a company and have the tools they need to succeed. It seems like an obvious decision, but these are just a couple of the benefits that business credit cards offer startups. 

Manage Subscriptions using Business Credit Cards for Startup Businesses

You can’t do everything in house. Nearly all startups are using a subscription service in some aspect of running their business. You want your staff to be able to do their best work, and this will often entail signing up for a subscription service. Your company credit cards offer the ability to sign up and pay for these services without the need for management approval. 

This doesn’t mean you are going to be in the dark as owners or financial managers. By using the cards, you can see which of the employee cards has signed up for which particular service. Oversight on subscription-based spending will mean that you can see if two similar services are being engaged, or if two employees have paid for the same subscription. 

Using a business credit card will let you manage and predict a lot of future spending. This will give you the opportunity to make smart decisions for all subscription service spending and budget for them accordingly.  

Smarter Ways to Pay with a Credit Card for a Small  Business Startup

Like all business credit card offerings, Archa will provide you with a physical card. But we know how the majority of spending is done — Apple and Google Pay are supported, so you can pay on the go. 

You can access digital cards as soon as you activate your physical card, giving you flexible options for spending. Your staff can add the card to their mobile wallets, so they always have access to make payments on the business's behalf. This means that whether it is signing up for a necessary subscription service or planning an important meeting, your staff will always be prepared to make payments without the need of reimbursement. 

A hidden and lesser-known benefit of using a digital card is an added layer of security. You're protected when spending online, and the cards themselves can be immediately frozen if there is any suspicious spending. Why take the risk of card theft when you don’t have to?

When choosing the best credit card for small business startups, look for one that supports how spending is done in business today. Apple and Google Pay supported cards are becoming ubiquitous in modern business; contact Archa to give yourself and your employees the financial freedom they want in modern business.  

Best Startup Credit Cards for Small Business Work Culture

Success in new tech businesses can hinge on positive work culture. Attracting and retaining talented people can also be the difference between make or break for a startup. By having set spending limits on individual cards, your employees feel trusted and able to make whatever payments are needed so they can do their best work. It will also remove any stress related to the use of personal spending methods. Together, this will build the type of work culture that will attract and keep employees on the job.

From a management perspective, slow reimbursements can compromise employee relationships and cause employees to be less productive. Archa allows you to establish a culture around company spending. A culture that is built on trust and transparency; employees able to spend from a set limit without concern of reimbursement; and financial managers have real-time oversight on spending, so they can make decisions on a budget accordingly. 

Other Benefits of Small Business Credit Cards for Startups

In addition to the administrative and cultural improvements, business credit cards for startup companies provide other benefits. One of the big ones is building a credit history and credit score. A major challenge for new businesses is proving they are creditworthy when applying for business finance, including business loans and business lines of credit. While looking for the best credit card for a business startup, remember that making payments on time will help you build a good credit score for future growth. Having a good credit history will also help you get better interest rates on finance products to help you save money. 

How to Get an Archa Business Credit Card for a Startup

Sign up with Archa today to access this wide range of benefits, tailored especially for startups in growing technology sectors. Services like digital card support and individual spending limits set you and your employees up to confident spending online and in-person anytime. 

As a manager, you have real-time oversight on how the business spends, and you can avoid countless hours spent on paperwork with no need for employee reimbursements. You are supported in creating a work culture that will attract and retain the talent you need to succeed as a new business. 

The Australian technology startup sector is growing at an exponential rate. Put your business in the best position to succeed in this rapidly growing market by speaking with an Archa expert today and see how the best startup business credit cards can work for you.