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4 reasons why you might need a business credit card

If you run a business, you might find you use your personal credit card for business expenses. While this may seem an easy fix in the short term, in the long term you’ll waste time when you have to go through your transactions at tax time.

Instead, you can choose to have a business credit card, which can make it easier to separate your business expenses because you have one credit card for personal expenses and one credit card for business expenses.

1.   Separate business and personal expenses

If you run a business, you might find you use your personal credit card for business expenses. While this may seem an easy fix in the short term, in the long term you’ll waste time when you have to go through your transactions at tax time. Instead, you can choose to have a business credit card, which can make it easier to separate your business expenses because you have one credit card for personal expenses and one credit card for business expenses.

2.   Cash flow

Sometimes in business, especially in retail, you can experience ups and downs in your sales. When this happens, you could draw on your savings or use a business credit card to smooth out your cash flow. Then, when you receive more sales, you can top up your savings or pay off your business credit card balance. Also, if you need to purchase equipment or a large amount of stock, a business credit card can help you manage these larger, once-off expenses.

3.   Earn rewards points for your business spending

By using Westpac’s BusinessChoice Rewards Platinum credit card for your business spending you may earn a lot of rewards points which you may be able to redeem for flights and much more.

4.   Empower your staff with business credit cards

When your team is often out on the road or meeting customers, you could give them a business credit card with a low limit set rather than having to reimburse them funds every time they make a purchase for the business account. In Westpac Live with the BusinessChoice Rewards Platinum credit card, you can order up to nine credit cards for the people in your team.

 

When the time is right for your business to apply for a business credit card, Westpac has a range of business credit cards to consider.