Running a business? A business credit card can help streamline expenses like rent, travel, and utility bills. Here’s a quick breakdown of what they are and how they differ from personal credit cards.
Who Can Apply?
- Self-employed persons, proprietors, partners of firms
- Age: 21 to 65 years
- Based on ITR, GST returns, and bank statements
Eligibility:
- ITR: ₹4.8L - ₹6L/year
- Documents: PAN, Aadhaar, Voter ID, business registration, etc.
Why Get a Business Credit Card?
- Cashback on travel, rent, utilities
- Lounge access, flight/hotel discounts
- Lower forex mark-up
- Fuel surcharge waivers
Perfect for frequent business travelers!
Liability Options:
- Sole Liability – Only the firm is responsible
- Joint and Several – Both the firm and cardholder are liable
- Individual Liability – Only the cardholder is liable
Choose based on your business needs.
What Happens If the Cardholder Leaves the Firm?
- The firm must inform the bank immediately
- Until then, expenses on the card remain the firm’s responsibility
- The bank will block the card after intimation
Credit Limit:
- Depends on the financial health of the business and the owner’s credit history
- Varies by bank and card type
Can You Use It for Personal Expenses?
It’s not advisable! Mixing personal and business expenses complicates tax reporting. Keep them separate to stay organized.
Business credit cards are powerful tools—use them wisely to manage expenses and grow your business.