What is the lowest rate for a business credit card?
It can vary depending on several factors, including the creditworthiness of the business, the specific credit card issuer, and prevailing market conditions. Typically the rates range from around 9% to 25% per annum for purchases, although rates below 10% were less common.
However, it's essential to note that advertised interest rates may be subject to change and may not necessarily reflect the rate you will be offered. The actual interest rate you receive on a business credit card will depend on factors such as your business's credit history, financial situation, and the card issuer's assessment of risk.
Additionally, some business credit cards may offer promotional interest rates for a limited period, such as a low introductory rate on purchases or balance transfers. These promotional rates can be lower than the standard ongoing rates but usually revert to higher rates after the promotional period ends.
What are the best low-rate business credit cards?
Here are some low-rate business credit cards offered by major banks and financial institutions in Australia that were well-regarded based on features such as competitive interest rates, low fees, and additional perks: NAB Low Rate Business Card, ANZ Business Low Rate, Westpac Business Low Rate Card, Commonwealth Bank Business Low Rate Credit Card, Bankwest Business Low Rate Mastercard, St.George BusinessVantage Visa.
Business loan calculations for 3 years (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 20,000 | 9.50% | 2,929 |
| 20,000 | 11.50% | 3,546 |
| 20,000 | 13.50% | 4,163 |
| 50,000 | 9.60% | 7,400 |
| 50,000 | 11.60% | 8,942 |
| 50,000 | 13.60% | 10,483 |
| 200,000 | 9.70% | 29,908 |
| 200,000 | 11.70% | 36,075 |
| 200,000 | 13.70% | 42,242 |
| 500,000 | 9.80% | 75,542 |
| 500,000 | 11.80% | 90,958 |
| 500,000 | 13.80% | 106,375 |
What are the lending limits for a low-rate business credit card?
The lending limits for business credit cards typically range from a few thousand dollars to tens or even hundreds of thousands of dollars. However, it's important to note that the specific lending limit assigned to a business credit card account is at the discretion of the card issuer and may vary based on individual circumstances.
Business owners can often request a specific credit limit when applying for a business credit card, but the final decision rests with the card issuer. Card issuers may also periodically review and adjust credit limits based on factors such as the business's financial performance, credit usage, and payment history.
Do Australian banks offer grace periods?
Yes, in Australia, grace periods for credit cards commonly range from around 21 to 55 days, depending on the specific terms and conditions of the credit card issuer. During this period, if you pay your balance in full by the due date, you won't be charged any interest on purchases made during the billing cycle.
It's important to note that grace periods generally apply to new purchases only and may not apply to cash advances, balance transfers, or other transactions. Additionally, grace periods can vary based on the billing cycle and when purchases are made within the cycle.
