A business credit card provides you access to short-term finance to make purchases, maintain cash flow, offset slow invoice payments, and extend your runway. Business credit cards typically come with an interest-free period, which means you won't incur any interest charges if you pay it back within that timeframe.
Cape's card solution, however, is known as a business charge card. You must pay back all charges on a Cape card within 30 days. There are no interest charges and no transaction fees.
Yes, you can get a business credit card with an ABN. Business credit cards are for business-related purchases, such as software subscriptions, stock, travel, or office supplies. Each card issuer has different criteria alongside an ABN to determine your capacity to have a credit card. For example, Cape only issues cards to ABN holders with a Pty Ltd business setup and annual revenue of over $75,000.
Yes, business credit cards have limits. While some card issuers don't advertise max credit limits, they all determine a business' credit limit based on their credit score and company financial performance. Some factors that will help you secure a larger credit limit include the consistency of your revenue, how much other debt you have, and your business's credit rating. Cape provides limits of up to $500,000, which you can assign to your team by issuing multiple cards and tracking in our spend management software.
Yes, self-employed people can get a business credit card. However, some lenders are hesitant to offer credit to self-employed individuals due to the perceived risk factors of defaulting on payments. The best way to apply for credit as a self-employed person is to set up your business as a Pty Ltd company, maintain consistent revenue and strong accounting records, and reduce the amount of other debt your business holds.
The time it takes to get a business credit card will depend on whether you provide the card issuer with all the required financial information. In some cases, it only takes a couple of hours; however, most Cape customers are approved within 1 to 2 business days.
You can carry a business credit card debt from month to month as long as you pay the minimum repayments according to your agreement with the issuer. On the other hand, Cape's business charge cards require full payment within 30 days of transacting.
Business credit limits are determined by an analysis of a company's financial statements - such as their recurring monthly revenue over a period of time - combined with credit ratings, director history, current assets, money in the bank, and numerous other case-specific factors.
It’s hard to put a number on what is considered a ‘normal’ business credit limit, but they range from $1,000 to $500,000+ depending on the financial situation of a business. Most small-to-medium businesses maintain a credit limit of somewhere between $5,000 to $50,000.
There is no limit to how many business credit cards you apply for. However, each application you submit is available on record for future providers. The more applications you have, the higher risk there is for a card issuer to offer you one of their credit products. Each new credit card you have also increases the total debt in your business, which will reduce your borrowing capacity and potential credit limit with another provider.
It's unusual for credit card providers to issue credit to new businesses that don't have revenue. Typically, they require 12 months of financial statements before you can access a business credit card. However, if you have documentation of funding from investors, you may still be able to get a business credit card. This is something Cape can help out with.
A company's financials are usually verified by assessing bank account statements and accounting records. The easiest way to provide this information to Cape is by utilising our state-of-the-art integrations with Basiq (for bank statements) and Codat (for accounting records) to sync your financial statements securely with our underwriting system. Alternatively, you can upload PDF statements to our review platform for manual verification.
An unsecured business credit card is the most common type of card you can get. It doesn't require security in the form of a deposit, personal assets, or other collateral to be approved.
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*Standard credit terms
Your credit limit is subject to credit approval. FX fees are free on foreign currency transactions up to $50,000, but this limit varies depending on your plan. Plans start at $39.99 per month and vary depending on the size of the facility you have and the features you use. By expressing interest, there is no guarantee that you will be approved for a corporate credit card.
Acknowledgement of country
Cape acknowledges the deep connections of Aboriginal and Torres Strait Islander communities to Country. We pay our respects to the Traditional Owners of the lands of our team and customers across Australia. We recognise the continuing contributions of indigenous communities in Australia and around the world. We pay respect to all Aboriginal and Torres Strait Islander Elders, both past and present and are committed to continually learning from these powerful traditions as individuals and as a wider team.
Cape is a trading name of Cape Pty Ltd. We are registered in Australia (Australian Business Number 83 654 770 199). Our registered office address is ACS Harbour City Labs, Level 27, Tower 1/100 Barangaroo Ave, Barangaroo, NSW 2000