Expense control and GST-friendly billing. Ranked by our editor score: reward rate, fee-to-value, perks you will actually use and ease of approval.
Business credit cards are issued to proprietors, partners and directors in their own name with the business's financials considered, and they do three things a personal card does not: reward tax and vendor payments, give a longer interest-free period, and separate business spend for your accountant.
Paying GST, advance tax and TDS through a card is allowed on the government portals (with a convenience fee of around 1%) and cards like HDFC Biz Power pay accelerated points on it. At ₹10 lakh of annual tax payments, 2.5% back less the 1% convenience fee is still ₹15,000. Vendor payments through platforms that accept cards work the same way.
Business cards commonly offer up to 55 days against the usual 45 to 50. For a trader buying stock on the first of the month and billing on the twentieth, that extra week of float is real working capital.
Expect to provide ITRs for the business, bank statements, GST registration and proof of the business's existence. Limits are set on the business's turnover, not just your salary. Sole proprietors with under ₹10 lakh of turnover will find it easier to get a premium personal card than a business card.
Using a personal card for business spend and losing the GST input credit trail. Paying a ₹2,500 fee for a card when your business spend will not clear the waiver. And revolving a balance: business-card interest is the same 36% to 45% as personal cards, far higher than an overdraft.
Written by the CardSparrow editorial team. Figures checked against each issuer's MITC; see our editorial policy.
1 card found
Best for small businesses & gst payments
5X points on business spends like GST, tax, vendor and utility payments, 16 lounge visits and 55-day interest-free credit.