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3 tips for the efficient use of business credit cards

2-minute read

Mixing your personal and business expenses may make balancing your finances more difficult, and the root problem could be the way you use and pay off your credit cards. Here are some tips that could help simplify the way you manage your expenses – plus a potential alternative to paying by card.

Key take-outs
  • Keep your business and personal card purchases separate
  • Consider paying off your business credit card using a business bank account
  • Consider alternatives to using a credit card when making larger purchases

Tip 1: Use the right credit card for purchases

When you have both a personal credit card and a business credit card, it can be easy to pull out the wrong one for purchases. If you use your personal account for business transactions, you’ll then have to go through your transactions one by one at tax time to make sure all your business expenses are included. 


To help avoid this tedious process, add a bright sticker to your business card. Keeping all your business banking separate from personal banking could also be a good idea.

Tip 2: Avoid paying off your business credit card using your personal account

To get a true reflection of your business cash flow, you may want to pay your business credit card balance or monthly repayment from your business transaction account – even if this means that you first transfer the money from your personal transaction account into your business transaction account. 


This ensures you maintain a total picture of your business finances, so that when you do a cash flow report to assess your cash flow position, you get an accurate assessment of your business performance. 

Tip 3: Consider alternatives to your business credit card if making a larger purchase

If you use your business credit card for large purchases in your business, depending on your circumstances you might be better off applying for a business loan (or an unsecured business loan if you don’t want to secure it with property). While a business credit card might give you a certain number of days interest free, once interest is charged, the interest rate could be higher than the rate for a business loan. 


If you use your business credit card in the right way, at the right time, you could save yourself a lot of hassle at tax time and make things easier for your accountant.

Read more

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A business credit card acts in much the same way as a personal credit card, but has greater advantages for business owners.

The difference between a business loan, credit card and overdraft

Thinking about borrowing money to help support your business? We compare popular loan options and explain the differences. 

How to set up business banking

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

Things you should know

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 business credit cards, business transaction accounts and business loans, by clicking the above links; 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.