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Business credit cards are powerful financial tools designed to help business owners manage expenses, build company credit, and improve cash flow. Unlike personal cards, a business credit card offers customised solutions for companies, such as higher limits, exclusive rewards, and simplified accounting. In India, businesses of all sizes can benefit from getting a business credit card tailored to their specific needs and growth plans.
A business credit card is a special payment card meant exclusively for professional use and business-related expenses. Issued to a company or a business owner, it acts as a dedicated line of credit for business purchases – from supplies to travel bookings. While similar to regular personal cards, business credit cards offer features that support better expense management. Plus, they often come with higher credit limits to match business needs.
Business credit cards can be issued in the name of a business, but usually require a personal guarantee from the owner, especially for small businesses or startups. This card helps keep business transactions separate from personal ones, improving bookkeeping, meeting compliance, and simplifying tax filing. Additionally, spending behaviour on the card can contribute positively to the business’s credit profile. This can make it easier to secure business loans or negotiate better terms with vendors in future.
Feature |
Personal Credit Card |
Business Credit Card |
|---|---|---|
Cardholder |
Individual |
Business entity or owner |
Use |
Personal expenses (shopping, dining, travel) |
Business expenses (stock, payroll, travel) |
Credit Limit |
Usually lower |
Usually higher to match business needs |
Rewards |
Often lifestyle and retail-focused |
Tailored for office, travel, utilities, etc. |
Credit Score |
Personal credit score affected |
Business credit history influenced |
Expense tracking |
Might need extra effort |
Easier reconciliation, separate records |
Examples |
ICICI Coral Credit Card, HDFC Regalia Gold Credit Card |
HDFC Biz Power Credit Card, ICICI Business Advantage Credit Card |
A business credit card can transform the way your business manages expenses and gains perks.
Using a business credit card means you can pay suppliers or employees instantly but defer payment until your next billing cycle. This can boost liquidity, helping you cover gaps between receivables and payables, and smoothing day-to-day operations.
Keeping business expenses separate from personal ones helps in clear accounting, reduces tax confusion, and avoids mixing funds. With a business credit card, tracking professional purchases, claiming GST input, and preparing financial statements become easier.
Business credit card offers generally include accelerated points on office supplies, utility payments, advertising spends, and professional travel. Many cards come with exclusive benefits like airport lounge access, insurance, and business software subscriptions.
Consolidated monthly statements make it easier for business owners or accountants to review and reconcile expenses. This can be vital during audits or when applying for loans, as lenders may request proof of responsible business spending.
Consistent and timely payments on a business credit card help establish a strong credit history for the company. This can make it easier to access larger loans or better credit terms in future.
Several banks in India offer high-value business credit cards for SMEs and larger firms. Here are some of the best business credit cards for Indian businesses in 2025:
Card Name |
Business Perks |
Charges |
Eligibility |
Other Benefits |
|---|---|---|---|---|
HDFC Bank Biz Power Credit Card |
5X rewards on business spends, 6 Priority Pass lounge access |
₹2,500 annual fee |
Self-employed & business owners |
55 days interest-free, welcome & milestone benefits, cashback & dining offers |
Axis Bank Business Supreme Master Credit Card |
8 reward points per ₹200, 4 airport lounge access per quarter |
₹1,500 annual fee |
Registered businesses & Business owners |
1% fuel surcharge waiver, 1% forex markup, travel insurance |
ICICI Bank Business Advantage Black Credit Card |
Up to 1% cashback, on international spends, concierge services |
₹1,500 joining, ₹1,000 annual |
Business owners, registered SMEs |
2 free lounge access per quarter, Up to ₹75 Lakhs insurance cover |
YES First Business Credit Card |
16 reward points per ₹200, 6 global lounge access p.a. |
₹999 annual fee |
Business owners and partners |
Golf rounds, 1.75% forex markup, 1% fuel surcharge waiver |
SBI Signature Corporate Credit Card |
Priority Pass, travel insurance, expense controls |
₹499 annual fee |
Corporate/SME, self-employed |
Up to 50 days interest-free, xero joining fees |
These are some of the best business credit cards for Indian companies and startups, with versatile rewards and convenient features.
Selecting the right business credit card is crucial for maximising benefits and controlling costs.
Review monthly business expenses like travel, office supplies, and utilities. Choose a card that gives the most rewards for your highest spending categories.
Some of the best business credit cards offer cashback, air miles, or exclusive business discounts. Ensure these perks align with your actual business needs.
A higher limit is useful for businesses with frequent or large monthly outflows. Look for cards that offer flexible spending power and the chance to increase limits over time as the business grows.
Study joining fees, annual fees, and interest rates. Sometimes a slightly higher fee is justified if the rewards or savings outweigh the cost.
Consider expense tracking tools, multi-user options for employees, easy EMI conversion, and business insurance—all can add significant value for growing companies.
Business credit card offers can help your company save money and earn more value on every transaction.
Many cards reward you with cashback on eligible spends like utility payments, fuel, and advertising. Always monitor your statements and redeem these rewards before expiry.
Take advantage of cards with up to 60 days of interest-free credit. This can greatly improve working capital management. Try to pay the full amount before the due date to avoid high interest.
Some business credit cards waive annual fees if you cross a certain annual spend limit. Choose such cards if your business is likely to meet these thresholds each year.
Leverage special discounts on software, travel bookings, or office supplies with select business credit card offers. Register for partner programs or newsletters to stay updated.
Use built-in features for tracking and categorising business expenses, setting employee limits, or generating spend reports. This reduces manual work and helps in compliance and auditing.
Applying for a business credit card is now a quick and mostly digital process, making it easier for Indian business owners to get started.
Begin by researching and comparing multiple cards based on business needs.
Once you shortlist a card, check the eligibility criteria set by the issuing bank.
Gather documents related to your business (like GST details, PAN, revenue proofs) and personal KYC papers.
You can apply directly online through the bank’s website by filling out an application form, uploading the required documents, and submitting essential business information.
Alternatively, you could visit the nearest branch for an in-person application.
Once submitted, the bank reviews your application and may contact you for additional verification.
Approval timelines usually range from a few days to two weeks. Once approved, you will receive your card, which can be activated immediately for use.
Business PAN Card and registration proof (GST certificate, incorporation docs)
ID and address proof of owner/directors (Aadhaar, PAN, passport, etc.)
Financial documents (recent bank statements, profit & loss statement, balance sheet)
Registered office address proof
Business must be registered in India (sole proprietorship, partnership, LLP, Pvt Ltd, etc.)
Minimum turnover threshold set by card issuer (varies, commonly ₹10 Lakhs+ per year)
Owner(s) should be Indian residents above 21 years
Satisfactory credit score (typically 700+ for best cards)
Stable cash flows and sufficient business vintage (often over a year in operation)
Tip: Always check the specific eligibility criteria and required list of documents set by your chosen credit card provider before applying.
Careful planning before you get a business credit card is vital for long-term benefits.
Strong, steady business income and healthy finances increase your approval chances. Assess your cash flows to ensure you can pay your card dues on time every month.
Most banks check the credit scores of the business and the owner. A higher credit score means you may get a business credit card with better features and limits.
Reflect on your business’s recurring costs and spending profile. Select a card that aligns with your regular business activities for maximum rewards.
Holding a business credit card means additional responsibility. Only apply if you are sure you can repay the full balance within each billing cycle.
Ensure your business is compliant with all tax and regulatory requirements. Cards may sometimes require declarations or documentation linked to GST and other filings.
Avoiding mistakes is essential so your card remains an asset—not a liability—for your business.
Using more credit than you can repay may result in high-interest debts. Set clear spending limits and avoid using the card for non-essential purchases.
Late payments attract heavy interest charges and may affect your business credit score. Use reminders or auto-debit features to never miss a payment.
Keep the card strictly for business transactions. Mixing expenses complicates accounting and may cause issues at tax time.
Regularly review your card statements for errors or fraudulent charges. Acting quickly can help fix problems sooner and avoid monetary loss.
Failing to redeem or use business credit card offers and accumulated rewards before expiry can mean losing out on valuable benefits.
A business credit card unlocks not just convenience but better control over company expenses and superior rewards for Indian businesses. Used wisely, it can become a financial ally for business growth. The key is to choose the right card, maintain discipline, and review your benefits regularly.
A business credit card is designed to pay for company expenses and manage cash flow, keeping business and personal funds separate. It helps build business credit, simplifies accounting, and often gives better rewards on professional spends.
When used wisely, a business credit card may streamline financial management and offer significant perks. Its value depends on responsible usage, spending alignment with business needs, and proactive use of rewards and offers.
Lenders usually look for a good business as well as personal credit score, with 700+ being ideal for getting a business credit card with premium features. Higher scores unlock better terms and limits.
Mixing personal and business expenses on a business credit card is discouraged. It may complicate taxes, accounting, and break card terms, potentially harming your business credit profile.
Business credit shows your company’s loan repayment history, card usage, and reliability as a borrower, whereas regular credit refers to your personal credit. Responsible use of a business credit card builds business credit separately from your personal profile.
The main risks are overspending, high-interest debt if payments are missed, and the temptation to mix personal expenses. Poor management may also hurt your business’s credit score or complicate accounting.
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Posted on 16 May
Roshani Ballal
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