Entrepreneurs typically use their credit cards for business expenses. They consider it to be a convenient option since getting the best credit cards for businesses is a tough process. However, using personal credit cards can get tricky over time. Business owners will struggle to separate their corporate expenses from personal ones during taxation. Startup founders must understand that getting a credit card to take care of business spending will give them a lot of flexibility and ensure compliance as well. However, only a few entrepreneurs leverage the benefits of using the best credit cards for businesses.
In this blog post, we will discuss the top 5 business credit cards available for startups in India.
Eligibility of Startups for Business Credit Cards
Startup owners shy away from getting a credit card for business due to the stringent rules and eligibility criteria. Most businesses fail at the requirement of minimum revenue numbers. For startups especially, it will take years before they reach shareable revenue. However, entrepreneurs don’t have to worry, they can instead get a business credit card.
Business credit cards typically only look at the creditworthiness of the business and its founder to issue the card. If you are yet to build a healthy credit score, you still can get the best credit cards for businesses in the form of secured cards.
Secured cards refer to payment cards for which you need to deposit an amount, which will decide your credit limit. If you fail to clear your dues on time, the bill amount is deducted from the deposit. Secured cards are a great option to improve your credit score and then get the best available business credit card.
5 Best Business Credit Cards for Businesses
Axis Bank MY Business Credit Card
Axis Bank My Business Credit Card: This card is designed specifically for small businesses and offers a lower interest rate than the SBI card. It also has a rewards program that gives you cashback on certain categories of spending, such as office supplies and travel. There is a joining fee for the first year, but it is waived if you meet certain spending requirements.
- Joining fee: INR 999 (first year waived if you meet spending requirements)
- Annual fee: INR 999 (first year) and INR 499 (second year onwards)
- Rewards program: Cashback on certain spending categories
YES Bank Zaggle Co-branded Credit Card
YES Bank Zaggle corporate credit card is a co-branded card by YES Bank and Zaggle. The card is built for startups and new businesses so that they can efficiently manage their business expenses. Since it is valid for international transactions, this corporate credit card is considered one of the best credit cards for businesses. Additionally, it offers the lowest interest rate and enterprise-grade security.
- Joining fee: Nil
- Annual fee: Nil
- Rewards program: 6 reward points for every transaction worth Rs 200. It also offers a complementary benefit of Rs 50 lakh insurance cover, Rs 15 lakh medical insurance, and Rs 5 lakh credit shield
SBI Platinum Credit Card
The SBI Platinum Corporate Credit Card has no joining or annual fees, which is a big perk for startups. It offers reward points on your business spending that can be redeemed for travel, merchandise, and more. However, keep in mind that the APR (annual percentage rate) on this card is on the higher side.
- Joining fee: Nil
- Annual fee: Nil
- Rewards program: Reward points on business spending
- APR: 40.2% per annum
HDFC Business MoneyBack
This card from HDFC Bank offers a flat 5% cashback on certain business expenses, such as telecom, electricity, government taxes, railway bookings, hotels & dining, and taxis. There is a joining fee and an annual fee, but the cashback rewards can help offset these costs.
- Joining fee: INR 1000
- Annual fee: INR 1000
- Rewards program: 5% cash back on certain spending categories
ICICI Bank Business Advantage Black
This card offers a cashback program on all your business spending and reward points that can be redeemed for travel and other benefits. There is a joining fee and an annual fee, but the cashback and rewards can help you save money on your business expenses.
- Joining fee: INR 1000
- Annual fee: Not readily available on the bank’s website
- Rewards program: Cashback on business spending and reward points
The Best Credit Cards for Businesses Are Just a Click Away
Most businesses, especially startups avoid getting a business credit card because of the hassle of the application process and the granular scrutiny of the company finances. One option to avoid undergoing the strict evaluation by traditional banks is to pick a fintech card issuer. But the problem now arises with the lack of a robust rewards program.
To solve these issues, Zaggle collaborated with YES Bank to launch a co-branded credit card for businesses. Besides all the benefits that it offers, the major attraction of the Zaggle business credit card is its spend analytics platform, Zaggle ZatiX. With the YES Bank Zaggle credit card, you get free access to reports and insights into your business expenses.
Check out the Zaggle credit card in detail here.