Did you know 67% of business owners have a business credit card? Or that 7% of startup companies use a credit card to fund their activities?
Do you have a business and are looking into financing options? It’s important to understand your options before choosing a credit card. Did you know there are business credit cards and corporate credit cards?
Not sure what the differences are? We’ll discuss business credit cards vs. corporate credit cards below!
What Are Business Credit Cards?
A business credit card is a lot like a personal credit card, only it’s attached to your business. There are pros and cons to having a business credit card. For example, many business credit cards come with rewards programs and very low-interest rates.
Business credits cards are generally used by small businesses or corporations. Many times, the business owner must personally back up the application and become responsible for liability.
Using business credit cards will make tracking expenses easier. They also reduce the need for issuing reimbursements.
What Are Corporate Credit Cards?
Corporate credit cards are mainly used by large organizations with millions to billions in annual revenue. The cards are issued to the corporation and no single person has liability for the payments. Corporate cards are great for businesses with a lot of travel or many different people purchasing for the company.
Using a corporate card will allow employees to make purchases directly from a company account. This will eliminate the need for reimbursements or complex expense tracking. Everything will be on one card, so tracking transactions will be simple.
Corporate cards allow the company to apply for a line of credit. Once approved, they can set up several different cards for their employees. There is no need to apply for individual cards or for employees to fill out applications.
Want to learn more about one of the best corporate credit cards? Check out this article from Bento on how to use corporate cards.
Business Credit Cards vs. Corporate Credit Cards: An Overview
Here are the main key differences you should consider when deciding between a corporate and business credit card:
- Corporate credit cards are backed by the company while business credit cards are backed by an individual
- Corporate cards are for larger businesses and business cards for smaller businesses
- Corporate cards require high annual revenue while business cards are available to startups
The cards also have a few similarities:
- Both cards allow you to create cards for employees
- Both cards help to build credit ratings
- Both cards make tracking employee expenses easy and centralized
When choosing a credit card for your company, you’ll need to look at the size of your organization and the number of employees who will use the account.
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We hope you enjoyed this article about the differences between business credit cards vs. corporate credit cards. Making the best decision for your company should be easier than ever with this information!
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