Small business owners bear a great deal of responsibility, particularly in the early years of operation. Small business owners must keep a careful eye on their finances and manage their cash flow because money is a major consideration. As a result, a consistent cash flow is critical, and many people rely on credit cards to fund or finance their businesses.
Using a business owner’s personal credit card for business transactions can put the owner’s personal credit card at risk. As a result, business owners’ reliance on small business credit cards to finance their small businesses has grown over time. Opening a small business credit card is a great way to streamline day-to-day business expenses as well as purchase the essential goods and services required for the business without delaying critical payments to vendors while also taking advantage of some of the added benefits, such as rewards and purchase protection.
How can a Credit Card be used for Small Businesses?
For a business owner, it is not advisable to start his business using a personal credit card as for the initial few years, debt keeps accumulating and it gets difficult for one person to pay back the bills amounting in full. Also mixing personal and business credit purchases makes it difficult to organize the business expenses while doing taxes, Hence a business credit card is more appropriate for setting up a small business.
Business credit cards come with a higher credit limit as compared to private credit cards which will help the business owner in purchasing goods and services required to start and run the business. Since these costs are usually high and continuous, a business credit card is more feasible. Since the business credit cards are offered by banks, it helps the business owner in managing all the business expenses. Having a business credit card also helps in keeping track of the purchases and the quarterly also annual statements provided by your credit card company, help you break down your expenses into categories and that can be very helpful for creating budgets and tracking expenses.
Benefits of having a Small Business Credit Card:
When utilized properly and with discipline, a small company credit card may be an excellent tool. The following are some of the benefits of having a small company credit card:
Increase the cash flow of your business
Helps you build your credit history and credit score.
Access a large credit limit
Business credit cards offer short-term spending flexibility
Keep your business and personal expenses separate
Enjoy loyalty points, rewards, cash-back and other perks
Stay organized with business expenses
Keep tabs on employee spending
Enabled with a chip which makes all transactions secure
Business cards are not subject to personal card limits
Easy application procedure
Check out our list of the Best Credit Cards for Small Businesses.
ADIB Business Gold Covered Card – by Abu Dhabi Islamic Bank (ADIB)
ADIB offers the first Islamic Visa Card in the UAE to help business owners better manage their day-to-day business.
Features:
Minimum Salary – AED 8,000
Rate – 3.00%
Annual Fee – AED 400
Non-AED Transaction Fee – 3.10%
Cash Advance Fee – 3.00 % / Min 99
Reward Features:
Covered Card limit up to AED 150,000
Advanced Chip & Pin Technology
Free Road-Side Assistance
Free for the first year
4 Free Supplementary Cards
No fee for replacement of damaged cards when cardholder delivers damaged card to the branch
Includes the fee of ADIB as an agent of the Cardholder.
8% discount on hotel bookings made at Hotels.com
12% discount over 985,000 hotels & vacation rentals worldwide with Agoda
ADIB Business Platinum Covered Card – by Abu Dhabi Islamic Bank (ADIB)
ADIB offers the first Islamic Visa Card in the UAE that provides extra flexibility and secure alternative to cash payments.
Features:
Minimum Salary – AED 8,000
Annual Fee – AED 800
Rate – 3.00%
Cash Advance – 3% / Min 99
Non-AED Transaction Fee – 3.1%
Reward Features:
Covered Card limit up to AED 250,000
Golf offers
Cinema Tickets
Purchase Protection
Extended Warranty
Free Road-Side Assistance
Free for the first year
4 Free Supplementary Cards
No fee for replacement of damaged cards when cardholder delivers damaged card to the branch
Includes the fee of ADIB as an agent of the Cardholder
Discount of up to 30% off retail rates at over 450 destinations globally
8% discount on hotel bookings made at Hotels.com
12% discount over 985,000 hotels & vacation rentals worldwide with Agoda
Access to over 200 airport restaurant offers globally
Emirates Islamic Business Card – by Emirates Islamic Bank (EIB)
Emirates Islamic Business Credit Card offers a wide range of exclusive rewards and benefits to grow your business. It combines high levels of security, value, convenience, and flexibility, to ensure your business expenses are controlled and your card spends are rewarded.
Features:
Minimum Salary – AED 10,000
Annual Fee – AED 0
Rate – 3.25%
Cash Advance – 3% / Min 199
Non-AED Transaction Fee – 3.49%
Reward Features:
Free for life
Earn EI Smart-Miles on all your purchases
Multiple cards for partners & employees
Unlimited complimentary airport lounge access
Multiple cards for your partners and your employees
Better control on business expenses such as business travel, dining and utility bill payments
Wide range of redemption options – flights, hotels, and other retail transactions
Cash-On-Call facility through 24/7 phone banking service
Easy payment plans for better cash flow management
Balance transfer facility on existing business credit cards from other banks
Provides a comprehensive suite of privileges that help reduce business expenses on hotels, rentals, courier services, restaurants, gifts
Golf offers
Cinema Tickets
Up to 30% at restaurants across the UAE
8% discount on hotel bookings made at Hotels.com
12% discount over 985,000 hotels & vacation rentals worldwide with Agoda
United Arab Bank Business Credit Card – by United Arab Bank (UAB)
The UAB Business MasterCard caters to the self-employed segment in the UAE providing them with a host of privileges and benefits unmatched by any other Business Card.
Features:
Minimum Salary – AED 6,000
Annual Fee – AED 0
Rate – 2.99%
Cash Advance – 3% / Min 200
Non-AED Transaction Fee – 3%
Reward Features:
Earn UAB rewards on all spends
1 points for every 1 USD spent domestically
2 points for every 1 USD spent internationally
Redeem points for flight tickets & hotels, car rentals, electronic and lifestyle products
Brand the credit card with your company name
Complimentary Airport Lounge Access at over 10 lounges across MENA
Exclusive benefits with Avis
Mastercard Priceless Cities Offers
Up to a 10% discount off the price of your booking for selected properties on Hotels.com
Discounts of up to 15% at prime luxury serviced apartments
Buy 1 Get 1 Free Offers on downloaded Mastercard with 900+ offers across 90+ destinations and 600+ merchants
Careem Chauffeur Offers with 20% off three rides every month
Business credit cards aren’t just for folks with storefronts or offices; freelancers, people with side hustles, and people who do gig labor can all benefit from them. Having a dedicated card for your money-making business allows you to keep your business and personal accounts separate. Also take advantage of the numerous rewards and bonuses given by various banks.
Bankbychoice helps you compare and find the best credit card suited for your needs to have an easy and hassle-free experience. The well-researched, solidly structured, unbiased content along with unique tools at Bankbychoice help you make well informed financial decisions for your personal and business transactions. In the process, Bankbychoice helps you identify the options that will let you save money and enjoy the best perks.
Bankbychoice grants their users services that would help them make the most of a wide range of personal finance solutions, from credit card reward cards in the UAE, to personal loans in UAE, to Islamic credit cards, to air miles credit card application and a lot more.
