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4 reasons to want a business credit card

4-minute read

When you start a business, it can be tempting to use your personal credit card for work expenses. But what starts as simple one-card convenience could lead to complications when it comes to tax time – and you may be missing out on the benefits of business credit cards.

Key take-outs
  • Separate your business and personal expenses
  • Get help with your cash flow
  • Earn rewards for business purchases
  • Empower your staff

1. Helps you separate your expenses at tax time

The short-term fix of using your personal credit card for business purposes can become a long-term hassle when pulling details together for your Business Activity Statement (BAS) and end of financial year reporting.


It’s generally considered to be a good idea to separate your business banking from your personal banking, and that includes your credit cards. With one credit card for personal expenses and a separate credit card for business expenses, you’ll be able to see exactly what you’re spending in each area – whilst avoiding the need to wade through and separate transactions at tax time.

2. Assists with cash flow

Sometimes in business, especially in retail, you can experience ups and downs in your sales – including predictable seasonal swings. 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. Rewards you for your business spending

If you use a rewards business credit card for your business spending, you can receive points each time you make eligible purchases – which include government payments such as tax1. These rewards can then be redeemed for flights and much more.


With Westpac’s BusinessChoice Rewards Platinum Mastercard® for example, you’ll earn Qantas Points you can use on flights, hotels, car hire and a variety of purchases. Choose a Westpac Altitude Business Gold Mastercard or Altitude Business Platinum Mastercard and the points you earn can be redeemed for all manner of goods. Or they can be converted to frequent flyer points with various airlines.

4. Empowers your staff with spending responsibility

If your team members are frequently 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 for every business purchase they make. 


With the Westpac BusinessChoice Rewards Platinum Mastercard for example, you can order up to nine credit cards for your people.  

How do I choose the right credit card for my business?

When comparing business credit card providers, the questions you may wish to ask yourself include:


  • Is a low fee credit card my biggest priority?
  • Is having a rewards credit card important to me? 
  • How many credit cards do I need for my business?
  • What credit limit do I need?


Other aspects of making a business credit card comparison include:


  • Interest rates
  • Interest free periods
  • Any insurance offered.


Westpac has a tool that allows you to compare the business credit cards that you can apply for in Westpac online banking.


Keeping all your business finances separate from your personal ones helps simplify tax time. So, it’s well worth considering the benefits of having a business credit card.

Read more

3 tips for the efficient use of business credit cards

Mixing personal and business credit cards can make it hard to monitor expenses and balance your accounts. Here are three tips to consider.

How to set up your business banking

New to business banking? Here are six things to consider when choosing banking products for your business.

6 reasons why you need a savings account for your business

We share the benefits of setting up a savings account for your business.

Things you should know


1. Government payments (such as tax) attract a lower points earned rate than other eligible purchases; and they exclude government charges. Refer to the terms and conditions for your relevant business credit card for more information.


Westpac’s products are subject to terms, conditions, fees and charges; and certain criteria may apply. Before making a decision, read the disclosure documents for your selected product or service, including the Product Disclosure Statement and T&Cs for Westpac savings accounts and business credit cards; and consider if the product is right for you.


The information in this article is general in nature and does not take your objectives, financial situation or needs into account. Consider its appropriateness to these factors; and we recommend you seek independent professional advice about your specific circumstances before making any decisions.


Mastercard is a registered trademark, and the circles design and tap & go are trademarks of Mastercard International Incorporated.