Choosing a business card with no pre-set spending limit

Cash flow is king, and a business card with no-pre-set spending limit could unlock funds when you need them.

If you run a business or hold an ABN, you’re sure to understand the importance of cash flow. A ‘charge’ card with no pre-set spending limit can help businesses and ABN holders access funds when opportunities arise.

However, to get the most out of a card with no pre-set spending limit, it’s important to understand how the concept works. In this guide, we explore what having no pre-set spending limit means and how it could make sense for your business.

How does a card with no pre-set spending work?

A ‘charge’ card with no pre-set spending offers no pre-determined credit limit. This differs from a credit card which provides a ‘fixed’ credit limit.

Holding a card with no pre-set spending limit doesn’t mean that you’ll be able to spend whatever you like. Rather, you’ll be able to spend whatever the card provider thinks you can afford to pay off each month.

A card with no pre-set spending limit needs to be paid off in full every month. It’s different to a ‘credit’ card, which allows cardholders to carry a balance month to month, whilst incurring interest charges.

What benefits does a card with no pre-set spending limit offer?

Used wisely, a card with no pre-set spending limit can unlock opportunities for businesses of any size. There are many reasons to choose a business charge card, including the ability to manage monthly expenses and help improve cash flow.

Access a powerful line of unsecured credit

A card with no pre-set spending limit unlocks purchasing power for businesses when it’s needed.

How does this work in practice? The card provider will evaluate your financial stability and spending patterns on an ongoing basis, in order to determine your purchasing power. Many factors are taken into consideration. This includes income, payment history, spending habits and other financial records. Your purchasing power will change each month in line with your spending habits and can grow with your business.

American Express offers a range of business cards with no pre-set spending limits. While borrowing power flexes with your spending patterns, there are ways for business owners to check if a purchase will be approved.

RELATED: Seven reasons to choose an American Express business card

If business owners are planning to make a large purchase on their Card, they can use the ‘Check Spending Power tool’ once they have set up their Online Account. With the Check Spending Power, Card Members can check to be sure a purchase will go through before they make it.

Extend business cash flow by up to 55 days

With a business charge card, you can take advantage of a set number of days from the time a purchase is made before you need to make your repayment. The date your repayment falls due depends on when a purchase is made, the statement issue date and whether or not you are carrying forward a balance on your account from your previous statement period.

RELATED: Eight ways to improve cash flow for your business

With American Express, depending on when you make your purchase, the cash flow cushion can be extended by as much as 55 days. It’s a simple way for businesses to extend cash flow on large invoices or recurring bills, each and every month.

Flexible payment options to tide your business through unexpected circumstances

From time to time, businesses of all sizes may experience cash flow challenges. A card with no pre-set spending limit usually needs to be paid off in full every month, however some products offer support for unexpected circumstances.

RELATED: Discover featured business credit and charge cards

American Express is currently rolling out ‘Flexible Payment Option’, a new feature to help business owners free up their cash flow with an instant line of credit on their Charge Card. Essentially, instead of paying off the balance in full each statement period, businesses can opt to pay it off over time.

It works like this: Amex issues a statement at the end of each statement period summarising the spend. The Card Member can choose to pay the Closing Balance, the minimum amount due, or any amount in between (up to their Flexible Payment Option limit). Any unpaid amount will be rolled over to the following month’s statement balance. Any amount not paid in full will incur interest at a rate of 19.99% p.a. until repaid.


A card with no pre-set spending limit offers a powerful tool for business. And above and beyond freeing up cash flow, many card products offer additional benefits, including rewards points, business-focused perks and streamlined financial reporting.

Fees, charges and Terms and Conditions apply. All information is correct as at 6 May 2020 and is subject to change. Cards are offered, issued and administered by American Express Australia Limited (ABN 92 108 952 085).

No pre-set spending limit does not mean unlimited spending. Your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit records, and financial resources known to us.

This article has been prepared in partnership with American Express

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