Apply for Business Credit Card
Suppose you have your own company and business is starting to run smoothly. Very nice of course. But now that you are making more and more profit, it is of course also increasingly important to have the financial affairs of your company in order. You probably sometimes incur costs for your company by means of your own, personal credit card. If this does not happen too often, it is of course not such a big problem. But the moment you start spending more and more business via a personal credit card, the private and business expenses can get confused and this will cost you a lot of research. In that case, it can be useful to consider a business credit card for your business. Such a credit card can offer you additional options to finance your business.
Business Credit Card Providers
There are a large number of parties where you can apply for a business credit card. For example, you can do this at the bank where you already have an open business account or you can choose another provider that is bank-independent. Below we compare a number of providers of business credit cards
Visa World Card Business
One provider you will most likely know by name is Visa. Visa is one of the largest credit card providers, is bank independent and also has a wide range of business credit cards. For example, there is the Visa World Card Business. This is the business version of the regular Visa World Card and costs € 35 per year. You have a spending limit of € 2500 per month.
Visa World Card Business Gold
In addition to the Visa World Card Business described above, Visa also offers the Visa World Card Business Gold. This business credit card is more extensive than the aforementioned card and there are a number of extras attached to it. For example, this card offers insurance against use by unauthorized persons and you can set the spending limit per employee. Handy when you employ a lot of people. The maximum spending limit is also higher than the cheaper version, namely € 5000. All these extra services come with a price tag. The Visa World Card Business Gold costs € 154 per year.
Another major bank independent player in providing both personal and business credit cards is Mastercard. Just like with Visa, Mastercard offers you a choice of different types of business credit cards. The simplest variant is the Mastercard Business. This card costs only € 35 per year and has a spending limit of € 2500 per month. And when you use more than five of these business credit cards, this will become an additional € 5 per month cheaper. The Mastercard Business is one of the most commonly used business credit cards in the Netherlands. You can handle this well, especially if you have a lot of business expenses in and from abroad.
Another business credit card that Mastercard offers is the Mastercard Corporate. This credit card is mainly intended for larger organizations with more than fifty employees. The Mastercard Corporate is slightly more expensive than the Mastercard Business and costs € 39 per year. The spending limit per month is the same as with the cheaper credit card. As with the other credit cards offered by Mastercard, this is a reliable payment method when doing business abroad.
American Express Business Green Card.
Another business credit card offered by American Express is the American Express Green Entry Card. This business credit card has many advantages over the aforementioned American Express Business Entry Card. For example, this card comes with the American Express points system as standard. How this works is that for each expenditure you make with the credit card, you save points that you can eventually exchange for, for example, airline tickets or other services or products. Another advantage of the Green Card compared to the cheaper version is that you are continuously insured against accidents on a business trip. The American Express Business Green Card is free for the first year and will then cost you € 85 per year.
American Express Business Gold Card
Finally, with regard to business credit cards, American Express also offers the American Express Business Gold Card. This card is the most expensive business credit card American Express has to offer and costs € 225 per year. The reason that the costs for this credit card are relatively so high is mainly due to the extensive insurance package that is associated with it. For example, when you use the American Express Business Gold Card, you are continuously insured for medical care abroad, but also for when you have to cancel a business trip or if you need legal legal assistance. If you do not need all these insurance policies, it is better to opt for a cheaper business credit card. Just like the American Express Business Green Card, this Gold Card also comes with the American Express points system. You don't get this exclusive card just like that. Your company must exist for at least one year and you must also earn at least € 36,000 per year.
American Express Business Entry Card
American Express is also a bank independent provider of corporate credit cards. There are several types of American Express business credit cards to choose from. The cheapest variant is the American Express Business Entry Card. An advantage of American Express in general is that there is no set monthly limit to spend. Instead, this limit is adjusted to your personal situation and spending behavior. However, a general drawback of American Express business credit cards is that these cards are not accepted by all parties as a means of payment. A disadvantage of the American Express Business Entry Card, compared to other, more expensive, American Express business credit cards, is that there is no standard points system associated with the use of the card. You can buy this points system for an extra € 25 per month. This is in addition to the regular costs of the Business Entry Card of € 50 per year.
Rabo Credit Card
Another provider of business credit cards is Infra Bank. Here you can use the Rabo Credit Card. You can only apply for a business credit card from Infra Bank if you also have a business account open at this bank. This is also the case with many other banks such as SNS, Across Lender and ABN Amro. For that reason, it is not possible to link the credit card of the Infra Bank to a bank account that you have open at another bank. This can be considered a downside, unless you are already at the Infra Bank. This business credit card costs you only € 33 per year, which makes this one of the cheaper providers.
Across Lender Business Card
With the Across Lender it is also possible to request a business credit card, namely the Across Lender Business Card. Just like with the Infra Bank, you can only apply for this business credit card from the Across Lender if you also have a business account with them. The Across Lender's business credit card costs € 37 per year. An additional advantage of this credit card is that at the Across Lender you can agree on a personal limit in consultation with the bank, which is already established in advance with other providers. The limit is a minimum of € 1,500 and a maximum of € 50,000. Also, Across Lender offers an arrangement called Corporate Card Solution for when you use five or more corporate credit cards for your business. This means that you will receive a comprehensive report of all expenses incurred with the various business credit cards. This can be useful when many different employees use the business credit cards and helps you to keep an overview.
ABN Amro Professional Card
If you already have a business bank account open at ABN Amro, then it might be worth considering trying this bank's business credit card. ABN Amro offers three different types of business credit cards, depending on the size of your company. The cheapest card is the Professional Card. This business credit card is only intended for when you are self-employed or have a sole proprietorship. The limit is between € 1000 and € 10,000 per month. In the first year of your company, the limit is € 250. You only pay € 27.50 per year for the Professional Card.
ABN Amro Business Card
Another business credit card that is offered by ABN Amro is the ABN Amro Business Card. This card is intended for small to medium businesses. When you use this business credit card, you can request multiple cards, for example for different employees. For the Business Card you pay slightly more than the Professional Card, namely € 30 per year. The default limit per month is $ 2500.
ABN Amro Corporate Card
Finally, ABN Amro offers the Corporate Card. This card is particularly suitable for large companies and companies. The card costs € 37.50 per year and also comes with a number of advantages over the two aforementioned cards that ABN Amro offers. For example, the Corporate Card comes with travel insurance against accidents as standard, so that you are insured for medical and legal assistance abroad.
What does a business credit card actually mean?
As you probably know, a credit card is a debit card. What makes a credit card different from other payment cards, such as the debit card, is that the amount is not immediately debited from your account. Instead, as a user, you only pay the amount to the credit card provider afterwards. Most credit cards cost a fixed amount per year. The amount of this amount differs per bank or other provider. More and more consumers in the Netherlands are using a personal credit card. A business credit card is not very different from such a personal credit card. If you have to make expenses for your company by means of a credit card, you can of course do so with your own personal credit card. But especially when your company grows larger, you make more profit or more employees are added, this becomes inconvenient and unclear. Then a business credit card offers a solution.
A calculation example
For many people, using a credit card can sound complicated. It also doesn't feel very intuitive to get your service or product first and pay for it afterwards. An advantage of a business credit card is that you have to pay back the full outstanding amount at the end of the month. This is often not the case with personal credit cards, so the total costs can be high due to the additional interest if you do not keep an eye on it. However, there are also costs associated with withdrawing cash with business credit cards. Usually this concerns about 4% of the purchase amount. This means that if you have to contact € 1000 with your business credit card, you still have to pay € 40 on credit card costs.
Frequently asked questions about the business credit card
If you have not used a business credit card before, it is common that this will raise a number of questions for you. Below are some of the most frequently asked questions that people experience when applying for a business credit card.
When am I eligible for a business credit card?
To apply for a business credit card, you must be registered as an entrepreneur for at least one year. If you are a self-employed person, it could also be that the application for the business credit card requires a review of the BKR. Some business credit card providers also require you to earn a certain amount per year.
What are the benefits of applying for a business credit card?
As an entrepreneur you simply incur costs, that is a fact. And nowadays you need a credit card for many of those expenses. For example, when you spend abroad or online. Or when you do business with parties that only deliver transactions by credit card. The advantage of a business credit card is that you keep your business and private transactions neatly separated from each other. An added benefit of a business credit card is that they often come with automatic insurance. This means you don't have to worry about your transactions and you can do business with peace of mind. Especially when you have a large company, a business credit card makes your expenses and costs transparent and transparent because you have less administrative hassle.
Are there any drawbacks to using a business credit card?
Unfortunately, there are also some disadvantages when you choose a business credit card for your company. For example, a business credit card is often more expensive per year than a regular, personal credit card. Also, when it comes to business credit cards, you have less freedom of choice than when you apply for a regular credit card. There are simply fewer parties that offer a business credit card than a personal credit card. Another disadvantage compared to the regular credit card is that with a business credit card you cannot pay in installments, but you always have to pay back the full amount at the end of the month. As a result, the business credit card is less flexible than the personal credit card.
Can I also use a normal credit card for my business expenses?
Do you rarely use the business credit card? Then it is probably cheaper for you to do this simply via a personal credit card. You can then request a second personal credit card that you only use for business transactions so that you can still keep your business and personal expenses separate. However, if you regularly have to spend for your business by means of a credit card, it is strongly recommended that you go for the business credit card. A business credit card is also more attractive to large companies. Many providers of business credit cards offer a discount when you request multiple cards, for example for different employees.
How do I apply for a business credit card?
Nowadays, applying for a business credit card is very easy. When you have made a choice as to the provider you want to use, simply go to the website of the provider in question. There you can easily indicate online that you want to use their business credit card and possibly also which variant.