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Small Business Credit Cards

Businesses use credit cards to pay for a range of different business expenses. There are many different small business credit cards on the market; each have different potential benefits they can offer to small business owners. Businesses use the cards to avoid tapping into their cash flow reserves.

Differences Between a Credit Card and a Line of Credit

Credit cards and lines of credit are often associated with one another because they are both forms of revolving credit. And while this is true, there are also many differences between the two forms of financing. Revolving credit is a form of credit that allows borrowers to tap into a predetermined amount of capital. Unlike a traditional loan, borrowers only pay interest on the money that they access — and they only have to pay back the money that they access. If borrowers don’t access any of the capital on the credit card or line of credit, then they don’t pay anything. But unlike credit cards, lines of credit allow you to access cash without any associated cash advance fees. For this reason, they are considered a more flexible type of financing.

How Can a Small Business Credit Card Help My Business?

There are many reasons you should use a small business credit card within your business. Many businesses that have credit cards use them for the following reasons:

  • Easy Access: If you don’t have substantial credit history, a small business credit card can be one of the easiest ways to access capital from a lender. Many lenders who will not issue loans to new businesses may be more inclined to issue them a credit card.
  • Rewards: As you are probably aware, consumer credit cards offer their borrowers a range of awards to entice them into using their credit cards. The same goes for business credit cards a range of benefits such as air miles or cash back incentives are available to businesses who use credit cards.
  • Easy Use: Credit cards give small businesses an easy and centralized way to pay for various expenses in the day-to-day operation of their enterprise

Is There a Reason I Shouldn’t Get A Credit Card For My Business?

As mentioned previously, credit cards do not give you access to cash unless you are willing to pay substantial cash advance fees. Credit cards allow you to pay for things using a card, and therefore can only be used at vendors who have credit card facilities. This is why a business line of credit is considered the more flexible finance out of the two different revolving credit options. If you want the benefits of cash on hand without having to pay extortionate cash advance fees, a line of credit is probably the more advantageous route to take. We offer our clients easy access to lines of credit so that they can meet funding requirements for day-to-day operations. You can apply through our easy-to-use online portal and get access to up to $150,000 in working capital!

Small Business Credit Cards