Business Credit Cards - What Are They?

Business credit cards provide a revolving line of credit allowing a company to make purchases or receive cash advances within the credit limit provided by the card issuer.  If the full balance on the card isn’t paid by the due date of the billing cycle, interest is charged. 

What Are Some Benefits Of Business Credit Cards?

  • Business credit cards can boost a company’s access to funds without incurring interest charges as long as the balance is paid off in full every month.  
  • Qualification standards for business credit cards are typically lower than those needed for loans or lines of credit.  
  • Responsible use of business credit cards can build a company’s credit rating allowing access to more sophisticated financial instruments.  
  • Business credit cards can replace the need for cash when providing deposits on high value items such as rental cars or hotel rooms.  
  • Online purchases can easily be made with business credit cards.
  • Many business credit cards offer cash back programs or reward points correlating to card use.

What Are Some Disadvantages Of Business Credit Cards?

  • Interest rates charged on late payments or when the balance isn’t paid in full are much higher with credit cards than they are on loans or lines of credit.
  • Interest rates affecting business credit cards, as opposed to those affecting lines of credit, loans or personal credit cards can change without notice.
  • Business credit cards are subject to fees or penalties if the credit limit is exceeded.
  • Most business credit cards need to be backed by a personal guarantee by the company principal making them personally liable for unpaid bills.

Emburse Business Credit Cards

Emburse now offers business credit cards as part of their expense management system.  If you would like to learn more about how business credit cards can simplify the administration of your expenses, get in touch with Emburse today.


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