Running your own business is rewarding. Having a business credit card like the NAB Rewards Business Signature Card is not just doubly rewarding. It can be triply rewarding, delivering NAB Rewards Points at up to triple the normal rate on selected business purchases, as well as providing a substantial welcome bonus upfront.
Your business has to spend money in order to earn it, but you can extract extra mileage from your business expenses by making them earn NAB Rewards Points, which in turn can be used to reduce your costs. Here’s how it works for this card:
That’s lots of ways to earn lots of NAB Rewards Points, which can be used to reduce your business expenses (e.g. by exchanging them for office supplies or travel) or to reward employees. More good news: there’s no monthly or annual cap on how many you can earn.
‘Everyday business purchases’ excludes cash advances, balance transfers, interest charges and account fees, and purchases of foreign exchange.
You won’t need to spend much to see those NAB Rewards Points start rolling in, big time. Spend just $4,000 using the card in the first 60 days (not such a big target for a business account) to get a 100,000 Points boost.
You can issue cards on the same account to other business partners (such as your spouse) as well as trusted employees. Each card can have an individual — and different — credit limit. Since you’ll get a monthly statement for each card and a summary statement for the total account, you can control expenses and quickly transfer the data into your business accounting records.
Additional security comes in the form of complimentary NAB Commercial Cards Unauthorised Transaction Insurance.
There’s no shortage of ways to make those rewards work for your business. You could:
If you don’t have enough Points for your chosen business reward, you can use Points + Pay to cover the balance with cash or your card (thus earning more Points).
If you want to reward employees (including the business owner) rather than reduce business costs, there are still plenty of options.
You can also reduce the burden of business travel on your employees and their families by transferring any Points accrued from their individual business card expenditures. That is, Points could be transferred to an employee’s personal NAB Rewards account.
Complimentary NAB Commercial Transport Accident Insurance is activated when travel fares are paid using the card. It provides cash compensation for a serious injury sustained when travelling on a plane, train, bus or ferry. It has the potential to not only protect the business principal and employees but also reduce business liability and insurance costs.
Business travellers and business entertainment hosts are more likely than the average person to make good use of Visa’s global concierge service. Booking assistance and advice are available for travel, restaurants, entertainment events, and cultural, shopping and tourist activities.
Just as it does with personal cards, Visa offers benefits to its business cardholders tailored to meet their special needs. Benefits can vary over time but could include:
This is not a low-interest credit card, although its 18.50% p.a. purchases interest rate is lower than that of some competing cards. The cash advance interest rate is a high 21.74% p.a. To get the best out of it for your business, you’ll want to:
The $175 annual fee is quite a big commitment, but one that is easily justified in the first year, where the bonus NAB Rewards Points alone are worth over $500 in retail gift cards.
In subsequent years you would need to spend around $34,000 using the card (slightly less if there were department store or overseas purchases in the mix) to recover the cost of the annual fee in gift card value.
Most business owners will have no problems with the eligibility hurdles for this card. You need to be:
When applying, you can upload your financials from any accounting software. Better still, if you use MYOB or Xero you can grant NAB access to your financial reports via a secure login. Both of these methods will result in a speedy decision.
Being able to issue credit cards to employees — while limiting the amount they can spend and receiving both detailed and summary monthly statements — is a useful management tool. But even if you are a sole trader who needs just one card, you can still receive the same advantages as a company by reducing your business costs by earning and strategically redeeming NAB Rewards Points, free insurance, and other business-oriented benefits.
Reviewed by Yvonne Taylor
Lead Product Analyst