American Express business cards are built with the needs of business owners in mind. They come with a range of tools and features to help owners run and grow their businesses, as we briefly explored in our first article in this series on the American Express business card range.

Today, we’ll examine three key benefits of using an American Express card in more detail: boosting cash flow, easily keeping track of expenses, and being rewarded for everyday purchases.

Improve business cash flow

No matter whether you choose a charge card or a credit card for your business (we explained the difference in our previous article), you can increase day-to-day cash flow by paying for expenses with your American Express card instead of other methods like cash, cheque or EFT.

With a credit card, you can either pay the entire balance in full at the end of the month to minimise interest, or pay part of the balance and access your revolving line of credit to increase cash flow even further (in which case interest charges apply).

Charge cards are designed to be paid off in full each month, however they do have a Flexible Payment Option (FPO) which allows you to free-up cash flow with an instant line of credit. Instead of paying your balance in full each statement period, you can choose to pay off a portion of it over time up to your FPO limit (interest charges apply).

Charge cards also have the benefit of a dynamic spending limit, which can help with managing cash flow. This does not mean you can make unlimited spending, rather your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit records, and financial resources. This gives you the power to increase your spending capacity over time. Credit cards, on the other hand, have a fixed credit limit.

With money in your bank account for longer, you’ll have more flexibility to invest in your business to help it grow.

Keep track of expenses

By using your card to pay for everything from inventory to bills, you can keep all expenses in one place and easily monitor outgoings.

It’s very simple to keep track of your live account balance online and via the Amex smartphone app, where you can also view recent transactions.

Another handy oversight tool is setting up instant alerts via email or SMS for such things as balance updates and payment notifications.

To help track employee purchases, you can provide team members with up to 99 additional cards linked to your account (at no extra cost for some cards – see our earlier article comparing the different cards for more information). This also helps you earn more reward points across the business.

Finally, all transactions can be easily downloaded into bookkeeping software like MYOB and Xero, which simplifies accounting.

Turn business expenses into rewards

By putting business spend on your card and additional employee cards, you can maximise the number of points earned by your business and be rewarded for those purchases.

Depending on which card you choose, you can earn Qantas Points or Amex’s own Membership Rewards points on purchases.

These points can be used for a variety of redemptions. If your card earns Qantas Points, they will be automatically transferred to the airline’s loyalty program each month. From there you can transfer points to other people, or redeem them for flights, hotels, gift vouchers and other rewards.

If you opt for a card that earns Membership Rewards points, you can manually transfer them to 8-10 airline frequent flyer programs, depending on the card, when the time is right. You can also use Membership Rewards points to pay for travel via American Express Travel, or redeem them for gift cards or to pay for purchases on the card. Right now, 20,000 Membership Rewards points can be redeemed for $100 of gift cards, travel or card purchases – a potentially attractive option for businesses looking to save money.

To help you choose which card is right for you, check out our earlier article where we compare the cards in the range.

To get tips like this delivered straight to your inbox, subscribe to our newsletter:

When it comes to designing cards for business owners, American Express leads the pack. Its cards can help businesses prosper by improving cash flow, simplifying tracking of expenses, making it easier to pay suppliers in Australia and overseas, and earning reward points on purchases.

Card members can also enjoy a range of other benefits, including various travel and lifestyle perks – although these aren’t applicable so long as the current social distancing rules and travel restrictions are in place.

In my earlier article in this series on the American Express business card range, I gave readers a broad overview of the card benefits. In this article, I’ll dive deeper into the seven cards themselves to help you consider the options. With a variety of features to suit different types of businesses, it’s not hard to find the right card for you.

Charge cards v credit cards

The first distinction to be aware of is that four cards in the range are charge cards while two are credit cards.

Charge cards have a dynamic spending limit rather than one that’s pre-set. This doesn’t mean you have access to unlimited spending, rather your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit records, and financial resources. This gives you the power to increase your spending capacity over time.

Credit cards, on the other hand, have a fixed credit limit. To increase it, you’d need to apply to Amex.

Charge cards must be paid off by the statement due date, unlike credit cards which require a minimum monthly repayment. However, Amex’s charge cards do have a feature called Flexible Payment Option (FPO), which allows you to free-up cash flow with an instant line of credit. Instead of paying your balance in full each statement period, you can choose to pay off a portion of it over time up to your FPO limit (interest charges apply).

Rewards program

As someone who loves earning reward points, I really value the ability to earn points on business spend. I pay nearly all business expenses with my American Express card, earning piles of points in the process.

Depending on which American Express card you choose, you’ll earn Qantas Points, Velocity Points or Amex’s own Membership Rewards points.

Membership Rewards points can be transferred to 8-10 airlines, depending on the card. This includes popular carriers like Singapore Airlines, Cathay Pacific, Emirates and Virgin Australia. However, Membership Rewards points can only be transferred to Qantas if you hold the high-end Platinum Business Card (which is my favourite card in the range).

If you’re a Qantas or Virgin Australia loyalist, you may prefer one of the partner cards that automatically earns Qantas Points or Velocity Points and comes with airline-specific benefits and privileges.

One last factor to note is that Membership Rewards points (but not Qantas Points) can be used to pay for purchases on your card. For example, right now 20,000 points can be redeemed for $100 on the account – a potentially useful option for businesses looking to save money.

Membership Rewards cards at a glance

There are three Membership Rewards cards, as summarised in the table below.

Annual Fee (may be tax deductible)	$1,750	$395	$169, plus $80 Membership Rewards fee (enrolment optional)
Additional Employee Cards	Up to 99, at no extra cost	Up to 99, at no extra cost	Up to 99, at $119 per card
Flexible Cash Flow Arrangement	Charge Card: dynamic spending limit with the option to pay over time	Credit Card: set credit limit, with the option to pay over time	Charge Card: dynamic spending limit with the option to pay over time
Earning Rewards	Earn 2.25 points per $1 spent (1 point per $1 on government spend)	Earn 2 points per $1 spent (1 point per $1 on government spend) Receive 50,000 bonus Membership Rewards points when you spend $100,000 annually	Earn 1.5 points per $1 spent (1 point per $1 on government spend)
Using Rewards	Manually transfer points to the following airlines: • Qantas (only available on the Platinum Business Card) • Virgin Australia • Emirates • Etihad • Qatar Airways • Hawaiian Airlines • Singapore Airlines • Cathay Pacific • Malaysia Airlines • Thai Airways • Air New Zealand • Virgin Atlantic (not available on the Business Explorer Credit Card) You can also use points to pay down the balance on your card or redeem them for gift cards, online shopping and more.
Travel benefits (n/a during COVID-19 travel restrictions)	Access 1,200+ airport lounges worldwide, incl. domestic Virgin Australia lounges Save up to 20% on first and business class fares Complimentary Accor Plus membership Elite status with major hotel chains Access to Amex’s Fine Hotels and Resorts program Comprehensive domestic and overseas travel insurance Platinum Concierge American Express Travel services and deals	Two annual American Express Lounge passes Comprehensive domestic and overseas travel insurance American Express Travel services and deals	Hertz Gold Plus Rewards Insurance cover for medical emergency expenses, baggage, trip completion, and travel cancellations and delays. American Express Travel services and deals
Unsecured credit facility	✓	✓	✓
Integration with bookkeeping software (e.g. MYOB)	✓	✓	✓
Application Link	Click here to apply	Click here to apply	Click here to apply

Qantas cards at a glance

There are two Qantas partner cards in the range. My pick is definitely the American Express Qantas Business Rewards Card , as it comes with some great perks.

Annual Fee (may be tax deductible)	$450	$160
Additional Employee Cards	Up to 99, at no extra cost	Up to 99, at no extra cost
Flexible Cash Flow Arrangement	Charge Card: dynamic spending limit with the option to pay over time	Credit Card: Set credit limit with the option to pay over time
Earning Rewards	Earn 2 Qantas Points per $1 spent on Qantas products and services Earn 1.25 Qantas Points per $1 spent on everyday purchases Earn 0.5 Qantas Points per $1 spent on government, utilities, insurance Earn TRIPLE Qantas Points on eligible Qantas flights	Earn 2 Qantas Points per $1 spent on Qantas Earn 1 Qantas Point per $1 spent on everyday purchases Earn 0.5 Qantas Points per $1 spent on government, utilities, insurance
Using Rewards	Automatic transfer of points to Qantas Business Rewards account	Automatic transfer of points to Qantas Frequent Flyer account
Travel benefits (n/a during COVID-19 travel restrictions)	Two complimentary Qantas Club lounge passes each year Save up to 8% on the base fare of eligible Qantas Flights Comprehensive domestic and overseas travel insurance American Express Travel services and deals	Travel Accident Insurance Travel Inconvenience Cover American Express Travel services and deals
Unsecured credit facility	✓	✓
Integration with bookkeeping software (e.g. MYOB)	✓	✓
Application Link	Click here to apply	Click here to apply

There is also one Velocity business card.

Eligibility

All cards have the same eligibility requirements. You must be over 18 years of age and an Australian citizen or permanent resident. You also need to have a good credit history and no payment defaults, and your business must have annual revenue of $75,000 or more and a valid ABN that is registered for GST.

Summing Up

Selecting the right card for your business ultimately comes down to the benefits and features you want. While many are universal across the card range, there are some key differences between the cards to consider.

For example, if you want flexibility to make larger purchases over time, you may prefer a charge card over a credit card. If you’d like additional cards for employees, it may be cost-effective to choose a card where these are complimentary. Or if you’re focused on earning Qantas Points, you may prefer a card that allows you to earn those.

No matter what your needs are, there’ll be a card in the range that meets them.

This article has been prepared in partnership with American Express. To view other articles in this series, click here.

To get tips like this delivered straight to your inbox, subscribe to our newsletter:

As a business owner, I’m always looking out for tools to help my business perform better – whether that’s by boosting cash flow, doing things more efficiently, or getting more value from everyday purchases.

If a product or service can save me time or money (or, ideally, both) then I’m always happy to give it a go.

One of my favourite tools in running The High Life is my American Express card. I use it to pay nearly all business expenses, which helps me manage cash flow, keep track of spend, and easily pay suppliers anywhere in the world. As the owner of a loyalty program website, I also naturally love the fact that I earn reward points on purchases.

American Express is ahead of the pack when it comes to developing cards for business owners. I’ve talked with many other business owners who are happy American Express card members, though I’m also aware that some businesses don’t yet know about the value American Express can bring.

To help educate and inform business owners, I’ve partnered with American Express to produce a series of articles on this topic. This is the first article in the series and it summarises the main features and benefits of Amex’s business cards. In future articles I’ll dive deeper into the cards themselves, the productivity benefits for card members, and tips for earning and using reward points.

Let’s get started!

The American Express business card range

There are five American Express business cards to choose from, with a variety of features to suit all types of businesses.

Some of the cards are charge cards, which means they have no pre-set spending limit. Instead, you have a dynamic limit that responds to your spending and payment patterns,  giving you the power to increase your spending capacity over time. Credit cards, on the other hand, have a fixed credit limit.

I’ll look at the cards in more detail in the next article, but in summary the range includes:

• three cards linked to Amex’s Membership Rewards program. My top pick of these (and from the range as a whole) is the ultra-rewarding American Express Platinum Business Card, which is a charge card. My second favourite is the American Express Explorer Business Credit Card
• one Qantas partner card designed for Qantas loyalists: the American Express Qantas Business Rewards Card  
• one card linked to Virgin Australia’s Velocity Frequent Flyer program: the American Express Velocity Business Card

If, like me, you really value reward points, the Membership Rewards program has some distinct advantages. For example, you can transfer Membership Rewards points to 8-10 airline frequent flyer programs, depending on the card, which gives you more flexibility when booking flights. You can also use Membership Rewards points to pay for purchases on your card, which is not available with the Qantas cards.

On the other hand, if you’re a Qantas frequent flyer, you may want to pick one of the partner cards that come with Qantas-specific privileges.

Key features of American Express business cards

All cards in the range offer the following benefits and features:

• Up to 55 days cash flow: you have up to 55 days to pay for purchases without incurring interest (depending on when you make a purchase, when your statement is issued and whether or not you are carrying forward a balance on your account from your previous statement period)
• Up to 99 additional cards for employees, at no extra cost for some cards, which helps you keep track of expenses across the business and earn reward points
• Earn and use points: earn Membership Rewards points or Qantas Points, and redeem them for many different types of rewards
• Integration with bookkeeping software like MYOB to simplify accounting.

Most, but not all, cards also offer:

• No pre-set spending limit: as discussed earlier, this is a feature of the charge cards, which have a dynamic spending limit
• Flexible Payment Option (FPO) is a feature of charge cards which allows you to free-up cash flow with an instant line of credit. Instead of paying your balance in full each statement period, you can choose to pay off a portion of it over time up to your FPO limit. Interest charges apply
• Travel benefits: while these aren’t applicable so long as the current travel restrictions are in place, when domestic and international travel do resume you may enjoy benefits like airport lounge access, complimentary travel insurance, and assistance with flight and hotel bookings with some cards.

Summing Up

If you’re a business owner looking for help to grow your business, consider the benefits and convenience an American Express card can bring.

In my opinion, American Express business cards lead the market with their range of features to help businesses prosper, including payment solutions, cash flow benefits and reward programs.

To help you consider the different card options, check out my next article in this series where I dive deeper into the card range.

This article has been prepared in partnership with American Express. 

To get tips like this delivered straight to your inbox, subscribe to our newsletter: