Absa Business Credit Card

Introduction

The Absa Business Credit Card gives South African businesses a line of credit for business spending, from one of the country’s major banks. It helps separate business and personal expenses and can smooth short-term cash flow.

Who it suits

It fits an established small business that banks with Absa or wants a business credit card from a major bank, to manage spend, travel and short-term working capital.

What you get

  • A revolving credit facility for business spend.
  • Clean separation of business and personal expenses.
  • Rewards and business benefits depending on the card tier.
  • The backing and network of a major South African bank.

Costs

Business credit cards carry annual or monthly fees, interest on balances carried, and eligibility criteria set by the bank. Check the current fees, interest rate and qualifying requirements before applying.

Our take

A business credit card is a useful cash-flow and expense tool when used carefully, but the interest makes it an expensive way to fund real growth. For that, compare proper funding options. If you want the full account too, see Absa Business Banking, and mind your cash flow.

Absa Business Banking

Related: Cash flow  ·  Funding options  ·  Absa Business Banking

Main Features

Flexible Repayment: With Absa, you pay as little as 3% of the outstanding balance monthly.

Interest-Free Days: The business revolving credit card has up to 55 days interest-free on point-of-sale (POS) purchases, provided the full statement balance is paid.

Zero Transaction: No transactional fees applied when swiping at point-of-sale.

Travel Benefits: The card includes automatic travel insurance (when flight tickets are purchased on the card). Visa Commercial cardholders also receive 15% off at Bidvest Premier Lounges and preferential rates at Elite Car Parks.

Expense Management: The credit facility consolidates all business expenses into detailed monthly statements. Users can also link Garage Cards to easily track vehicle-related costs such as fuel and oil.

Rewards: You can earn cash back through Absa Rewards, including bonus percentages when signing up for automated credit limit increases.

Pricing

There are two credit card options for SMEs from Absa.

Business Revolve Credit Card – R40 monthly account fee and pay as you transact account.

Business Credit Card – R40 monthly account fee and pay as you transact account.

Fees: Once approved, costs include:

  • Once off initiation fee – R300
  • Monthly service fees – R35,50
  • Garage Card – is sold separately but can be linked to the Business Card; annually it costs R305.
  • Lost card administration fee – R140

Interest rate: You are advised to ask your personal banker about this.

Other: The following are sold separately and can be paid annually: Purchase Card (R381), Virtual Pay (R820), Aviation Card (R329), and a Travel Lodge Card (R632).

Pros and Cons

Pros

Interest only on amount used
Comprehensive rewards for travel and fuel
Low, fixed monthly fees

Cons

Potential fees
Debt trap
FAQs

You’ll typically need your South African ID, business registration documents, and recent financial statements. Absa may request additional documentation depending on your business profile.

Approval times can vary depending on your circumstances. Generally, it can take anywhere from a few business days to a week for a decision.

While Absa prioritises established businesses, they may consider applications from newer businesses with strong financial projections and a solid business plan.

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