Business Credit Cards

Business credit cards are almost like the usual standard credit cards. It can also be used to purchase a wide range of products and services and for availing special promos and discounts. However, business credit cards differ from standard credit cards due to the following features:

Unlike standard credit cards, business credit cards are issued under a specific company’s name and not under the one who will eventually use it. If you happen to be an employee who will be issued with this type of card, the account will be under your employer’s name and not yours. The company will shoulder all debts that your card will incur. So to regulate the limit and to impose control over spending, the company owner has the option to set credit limits upon the user through different ways.

In addition, reports about card management are also sent to the company by the credit card issuer. This extra information includes a detailed statement of the purchases made, the amount of items, as well as the date and place where the items have been purchased. These allow the company holder to track down any questionable charges.

At times though, additional card features may be asked by the company holder to be included in the business credit card to be issued. Additional perks such as insurance benefits as well as discounts on banking transactions may be enjoyed by the employee. Business credit cards also come in two different types:

1. Charge cards – This type of card may require the holder to pay a full amount once the statement becomes due. For this reason, charge cards are usually chosen only by large corporations which can generate enough cash flow to shoulder heavy charges.

2. Credit cards – This card allows minimum payments for the bills due. However, it charges interest for balances that are unsettled. This is why a business credit card is usually opted by small to medium scale businesses. Still, it is advisable that balances should be paid off as soon as the statement is received to avoid accumulating interest charges.

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