How it works
With a business credit card, you have:
- One master account that holds the total credit limit for your business. This is the business billing account.
- Individual cardholders with their own cards and monthly spending limits which are included in the total credit limit.
If you only have one cardholder, your account is still structured like this.
Your business credit limit is the pool of funds available to all your cardholders. It needs to be large enough to cover the full 55 day cycle from when purchases are made until payment is due.
For a cardholder to make a transaction successfully, there must be enough available credit both on their individual card and on the business billing account.
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Here's an example
Let's say your business has a total credit limit of $25,000 and you have two cardholders, each with a $5,000 credit limit.
Over a 30-day cycle, the cardholders spend a combined total of $7,000.
This is charged to your business billing account and after 30 days, you receive one consolidated statement. You then have 25 days to pay the $7,000 balance.
During this time, you still have $18,000 of available credit to use until the full $25,000 limit is reached.
Your available credit is always changing and reflects both new purchases and any outstanding balances still owing from previous statements.
Review both the business billing account and individual cardholder balances regularly to help avoid declined transactions.
If your credit limit is reached early
Check whether the limit has been reached at an individual cardholder level or on the business billing account.
Make an early repayment to either the cardholder account or billing account by transferring funds to free up some or all of the credit. The balance will then update.
If a statement has been generated and your account has a direct debit set up to pay the outstanding balance, in most cases, the direct debit will automatically reflect any manual payments made.
Change your credit limits
To change the credit limit of an existing cardholder, or to add new cardholders, complete this form and return it to us: Existing business credit card - add or make changes to cardholders.
To apply for a temporary or permanent credit limit increase for the business billing account, call our business banking team.
Kiwibank's lending criteria, terms and conditions, and fees apply.
Credit card accounts with positive balances are protected under the Depositor Compensation Scheme.