Blog Do I Need A Business Credit Card

Business Credit Cards: Do I need one?

22 January 2021

I have a business, so do I need a business credit card?

If you have a business, you need a business credit card. It really is that simple.

You will save so much time not having to go through personal credit card statements trying to remember if that $48.75 purchase from 5 months ago was personal or business-related, especially if you don’t recognize the merchant. Not to mention how much harder this process is if you have staff also making business-related purchases. You can’t just hand out your personal credit card whenever something for the office needs to be purchased (or at least, you shouldn’t); it’s just impossible to keep track of. Sure the Qantas points were nice, but now all the planes are grounded and that sweet Gold Lounge is sitting unoccupied. It’s time to move on.

How will a business credit card make my life easier?

There are several reasons why a business credit card is a more suitable fit than your personal credit card. There are multiple software subscription services you need to manage, charges from business lunches or per diems, flights, hotels, conferences, incidental purchases, the need to share the card around to other members of your staff so that they can effectively do their job, it is very hard to stay on top of all the money coming in and out when you are mixing business and personal spending. Come tax time, it is an absolute nightmare for your accountant to figure out what’s going on.

Having a business credit card will allow you to have control and oversight over all of your spending. Certain cards will integrate into your existing accounting software, making reconciliation easier come tax time. You can have multiple additional cards attached to the same account. (This means you can give that true Oprah experience to your employees. YOU GET A CARD, AND YOU GET A CARD! EVERYONE GETS A CARD!) There’s no need to sift through statements, separating your personal spending, it’s all business, all the time.

How do I choose the right business credit card?

You’ve decided to get a business credit card, but now comes the hard part. How to decide on which one? Pretty much every bank has multiple business card options and the differences between them range from interest-free periods on purchases, cheaper interest rates for the first few months, no annual fee, multiple cards linked to the one account, rewards, Qantas points, itemized statements, and compatibility with your current accounting software.

The decision comes down to you. What are your needs as a business in the short term vs the long term? What are the problems that you are trying to solve with a business credit card?

For instance, if you are planning to buy a full office worth of furniture and equipment and you are looking to make all those purchases within a short time frame, then you may want to choose a card that offers a lower interest rate on purchases made for the first 6 months. If you have an office full of travelling staff that all need their own card for incidentals while they are out on the road, then you will want to look at a business credit card that offers additional cards linked to the same account for no additional cost, and likely also some good useability that will enable you to issue quickly and track closely. The cost of providing everyone with their own card can add up very quickly, especially in a growing business.

What next?

Once you have assessed the needs of your business and decided on a credit card provider, it’s time to apply. Strangely, this is the tricky part. Most banks require you to fill out lots of paperwork, they need multiple signatures and often a personal guarantee from you. Then there is the dreaded period where you need a business credit card immediately, but you have to wait for them to run everything through the same system they have been using for 30 years. Believe it or not, this application process often requires a fax machine…

That’s where we come in.

Archa is a digital-only small business credit card provider. No branch visits, no waiting in line, no interruption to your workday. All our applications are done through our website and then once you are approved, you can download our app and away you go. Soon we will be able to provide you with a virtual card that you can use whilst your physical card is in the mail, because we are all about making this process a breeze for our customers.

If you have a business and are based in Australia, why not sign-up to our beta? We are currently onboarding beta customers and would appreciate the feedback that only an experienced business owner such as yourself can provide. Sign-up here:

Corporate Credit