Hello all, great place you have here – Been super helpful so far but now I have a question.
Im looking to start a new business and obviously would like to utilise a Credit card to make things easier, but also earn Velocity/Krisflyer points too (Japan is my fav destination!)
Just a note; This will be a sole trader, single person business, minimal profits to begin with, but obviously hoping for that to change haha.
Originally I had planned to use the NAB Velocity rewards premium card to have access to both Amex and Visa and the points were a good deal too, Almost signed up until I read the TOS; they mention that points can’t be claimed on purchases NAB decides are business purchases.
Has anyone had experience with this, any chance I can use it for business and make points, or is there a better option? I have looked at business cards but NAB do no have a velocity business card anymore, and AMEX velocity business requires a personal income too high of a beginning small business/Sole Trader (and the balance must be paid out at end of each period, this is a concern)
I would look to use the Credit card to pay for mostly business expenses (Stock, software licensing, hosting, packaging, advertising) but also for paying utilities (or share of) as the business is run from home – And also personal purchases/bills. – I do intend of speaking with an accountant/financial advisor about what I should do with this.
I apologise if im not making much sense, I am just running out of time to get this sorted, Currently have another personal credit card with no rewards but much lower interest rate so if I am unable to claim rewards as a new business on a personal account I may aswell stay put 🙂
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We can’t recommend any specific cards here on Point Hacks on a personal level (so note only future answers added that do will have to be removed – sorry).
That said there are a number of Business Cards linked at the bottom of the Credit Cards page which you should check out.
Your note on the ‘business expenses’ term for NAB is a good one, and is one that ANZ also add on their products. It’s there to put off anyone tempted to run massive transactions through the card such as ATO payments and to give them a suitable get out clause if they deem fit.
For simplicity in accounting as well I prefer to have a seperate business card. My own accountant is fine for me using a personal card when it makes sense for me to do so though, but YMMV.
On not paying your balance each period, if you think you want to carry a balance then the value of any rewards earned are likely to disappear really fast when paying the interest rates of rewards-based cards. If you think you want to use the card as an ongoing line of credit then look away from rewards cards IMO.
Thanks for the reply Keith ?
Thats okay about the not being able to recommend cards, my concern really is solely that of; can I gain points on personal cards (on this occasion nabs one) by small business purchases/has anyone done this with much success, I’d hope they are fair to the little guys.
I was not planning on carrying balances over except for the first big purchase (stock order) as the card I looked at has 15Months interested free, which will help with the first out of pocket expenses to get things moving :p
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