As the owner of a business you will be aware of the different business credit cards available to your company. Take the time to shop around, and compare offers, especially if you are looking for balance transfer business credit cards.
There is no substitute for hard work. CitiBusiness Gold Card rewards you for working hard with 1.25 rewards points for every $1 spent whilst enabling you to monitor your cash flow and transfer balances at low rates because this card recognises your priceless effort in building your business.
- 0% p.a. for 4 months (reverts to 20.74%p.a.) on purchases
- 0% p.a. for 4 months on balance transfers
- $149(half-price annual fee in the first year) annual fee
- 21.49% p.a. on cash advances
Featured Business Balance Transfer Credit Cards:
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual Fee | Cash Advance Rate (p.a.) | |||
|---|---|---|---|---|---|---|
 Citibank CitiBusiness Gold |
Business can mix with pleasure using your Citibusiness Gold Card. It enables you to manage your business credit whilst giving you the privileges of a personal credit card with a great rewards program. | 0% for 4 months (reverts to 20.74%) | 0% for 4 months | $149(half-price annual fee in the first year) | 21.49% |   |
 American Express Gold Business Card |
Make running your business easier with the American Express Gold Business Card which gives you up to 51 days credit free days and no pre-set spending limit on purchases. | $169 | |
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 American Express Platinum Business Card |
The American Express Platinum Business Card will work as hard as you do with GST itemisation for improved record keeping, dedicated Platinum Business Concierge, selection of unique business, lifestyle, events, experiences and more | $1200 | |
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 American Express Qantas Business Card |
$299 | |
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 American Express Business Accelerator Credit Card |
Receive 2 Membership Rewards points for every $1 dollar spent | 20.74% | $160 | |
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 American Express Velocity Business Card |
A truly dedicated business rewards credit card. Download all your card expenses in a format readable by Quicken, MYOB, Microsoft Excel and more. | $249 | |
Business owners always need money available and that is just a fact of life. Whether funds are needed to purchase merchandise, pay the bills, or cover other business expenses like payroll, there is a need for money to be quickly available. Balance transfer business credit cards allow business owners to move money from one account to another, keeping their assets liquid and always available.
Credit card issuers love balance transfer transactions
As an incentive to attract new customers, banks and other credit card issuers tend to offer very attractive balance transfer business credit cards. Such offers are uniquely attractive to business owners because they may be offered various incentives when they apply for the cards.
Lower rates of interest, loyalty points, and even periods of time which are interest free, can save the business owner a lot of money when they move their financial dealings from one lender to another.
The only people that lose out in a balance transfer deal will be the old lender as they lose you as a customer. This is also an incentive to them to lower their rate of interest, or offer some benefits in order to remain competitive.
The advantage of having business credit card accounts
Business owners have an advantage over personal credit card applicants in that they spend more money. This creates more interest over time for the credit card issuing company.
Business owners typically spend their money at merchants who sell goods to them either face to face, via the Internet, or over the telephone. Internet transactions using a credit card are popular and secure ways for the average business owner to obtain their stock, or pay their bills instantly instead of waiting days or even weeks for the transaction to complete as it would previously through the mail or by telephone.
When these transactions can be completed with no interest charged it will mean substantial savings for the struggling business owner.
Business card owners are encouraged to move their financial assets
Business owners who have an ABN (Australian Business Number) often qualify for some prestigious benefits that are simply not provided for non business credit card applicants. They may find they have tax deductions involved with their spending that would otherwise be unavailable, or much lower interest rate than what is available to the public.
Incentives like frequent flyer miles can add up to some substantial savings over time (you are going to travel on business anyway right?). Reward points add up as well, and can soon become a valuable asset for the typical business owner. Travel insurance is often complimentary as is a unique service involving business concierge assistance.
Good credit deserves to be compensated
Business owners who have established an excellent credit rating for themselves and the business can appreciate some valuable “perks” when they take advantage of balance transfer business credit cards, beyond the low rate of interest or frequent flyer miles.
Many owners of business credit card accounts choose to move from one card to another frequently, and this often depends on how good the “teaser” rate of interest is. This is an incentive initially; often involving very low rates of interest that expire within a certain period of time. Usually anywhere from six months to a year.
Once the excellent incentive has expired that business owner simply moves his business account to another credit card issuer. This process can be repeated again and again, thus saving the business owner a lot of money over the years. Smart business owners who value their excellent credit rating by preserving it, can look forward to easy access to funds when needed, and take advantage of the lowest rate of interest available.
Grab onto that “teaser” rate of interest
The credit card business is built on making money just like any other business . The lenders need to attract new customers by whatever means necessary to get their business established, then hopefully keep them loyal. Among the incentive programs to gain new credit card applicants are what are called “teaser” interest rates.
They may be as low as 0% for new accounts, and typically this excellent rate will last for anywhere from six to fifteen months. This is attractive to business owners who are in the habit of moving their business credit around, through the use of balance transfer business credit cards.
Those attractive interest incentives will elapse, so it only makes sense to move on to another lender who may offer the same free interest, or some other financial incentives for the financially savvy business owner.
Business credit card accounts may have restrictions
There are several differences between personal credit card accounts and business related accounts. To obtain a business credit card the owner will be required to obtain an ABN (Australian Business Number), and that can be applied for through a government web site.
The business card account is issued in the name of the company and not the individual applicant. This allows the company named to be solely responsible for whatever amount of debt is charged to the card. It is then used for business related charges only.
Many restrictions may be applied to use of that credit card, including limits on the amount of purchases made at any one time, or restricting use at certain places of business. Normally ATM cash withdrawals are uncommon, and if cards are issued to individual employees they may have further restrictions placed on each card according to the ranking of that employee.
Credit card “perks” can be costly
Business owners must remain aware of just how expensive their business credit card account can become once the incentives are gone. It pays to simply switch to yet another credit issuing company who offers more “perks”, and a better rate of interest. Check to make certain that those frequent flyer miles can be transferred when the jump is made to another provider.
The same goes for any points accumulated for purchases already made. Often if the credit card is another MasterCard or Visa account, the points can be transferable, but make certain of that or decide whether you are prepared to lose the points during the move from one credit card issuer to another.
Paying off higher interest rate accounts with 0% saves hundreds
Perhaps the biggest incentive to transferring credit card balances is found with balance transfer business credit cards in which the high balance card is taken over by a low interest, or in many cases interest free credit account.
This can provide savings that may amount to hundreds of dollars for the business owner. When taken into account, many businesses primarily purchase through use of a credit card, and this can be a deciding factor if the credit card is not accepted where that business owner wishes to make his purchases.
Typically MasterCard and Visa are accepted world wide at almost every business establishment, but Amex may not be. They do offer some other rewards and especially inviting incentives, but being able to use the card for day to day purchases is vital to any business.
Typical business owners carry a balance on their credit cards
Ideally we want to pay the balance on our credit card accounts each month. This of course allows you to avoid any interest charges being added to your balance. Most businesses however simply cannot afford to pay a balance off in full each month, and allow somewhat of a balance to remain on their account.
This is where the rate of interest and how it is charged become very important. Typically interest is charged annually. The APR (annual percentage rate) is additionally compounded monthly then added to the balance each month, unless the balance owed is paid off.
Having access to your account information online is necessary in order to see exactly how much is being charged for use of the card each month. When payments are late, or as the balance builds up, there will be significant rate of interest increases, so be aware of that as it can definitely hurt a business financially.
Being financially responsible with credit
Typically, business owners and corporate executives are extremely responsible individuals. They did not become successful in their trade by compromising their reputation, especially financially.
When they take advantage of the ability to use balance transfer business credit cards they are using it as a means of saving the business money, as well as increasing the companies financial reputation.
As a business owner it pays to keep on top of the various deals available to your company. It is a very good idea to build up a good relationship with your lender, and if possible to have a specified manager that deals with your account.
Credit card lenders love business customers as there is a good chance they will use the card regularly, and that they may develop a longer term relationship with you, which could involve you taking on other products such as business loans, business bank accounts, and other business related products.
The most important thing is to remember that card providers want you to remain loyal to them, and will often try to retain your business by throwing different offers at you. If you are simply looking for a low interest rate balance transfer business credit card then be honest, and let them know what you want. With lenders battling so hard for business, you can often bag your company some amazing offers.
Compare
Just as with the personal credit card market, lenders realise how competitive the game has become. They have also realised that businesses are looking for the best deal possible. These are all things that can work in favour of your business. Ideally as long as your business remains in good financial order, and retains a good credit history, then applying for any sort of credit should never be much of a problem.
Posted on Saturday, June 5th, 2010 at 5:31 pm
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