For some people, the terms “business credit card” and “charge card” are one and the same. However, although both cards are used as business financing tools, there are differences between the two. If you are a business owner, understanding more about these two cards is important. What are the differences between charge cards and business credit cards?

Differences between the Two

Just like a personal credit card, a small business credit card can also be used to make purchases which you can pay off on your due date. As a credit card holder, you have the option to pay off your balance in full or pay only the minimum required by your issuer.

As much as possible, it is recommended to pay your balance in full to avoid paying the additional interest rate. Consequently, if you choose to carry over your balance for the next month, you’ll automatically be charged with the additional interest charge.

A charge card is different. With a charge card, the interest rate or APR doesn’t apply at all. However, carrying over your balances to the next billing cycle is also not an option. Instead, you are obligated to completely pay off your charges on your scheduled due date of payment.

Which One is For You?

As an entrepreneur, which card should you get? Your decision should depend on your spending style and business needs. For instance, if you want to put a limit on your monthly spending, a charge card may be the more practical choice. Since you can’t carry over balances ...

Every business owner knows the importance of establishing and building business credit. Without a separate credit history, a business would find it more difficult to get approved for loans or new accounts. On the contrary, a solid and outstanding business credit not only ensures fast approval but also encourages great deals from potential lenders.

Why should you start establishing your business credit now? Establishing your credit history from the time you’ve launched your business is definitely an advantage. The older your business credit is, the more confident lenders would be on your ability to keep up with your payment obligations. Why is this important?

Sooner or later, as your business grows and expands, you’ll need to apply for new loans and other business financing options. As we’ve said, the more impressive your business credit history is, the better your chances are of getting the best of what lenders has to offer.

In addition, having a corporate credit protects your personal credit history from risks. If you fail to meet your deadline of payment on your business credit card, only your business credit will be affected and your personal credit history won’t have to suffer. Let’s discuss the requirements and information you’ll need to prepare before you can start building your business credit.

Legal entity. First of all, you need to clearly define the type of your business. To qualify for corporate credit, your business should be a corporation or an LLC (Limited Liability Corporation).

Physical Address. A legitimate business must have a physical address and telephone number. These two important contact details confirm that ...

Some people believe that business credit cards are not necessary for a business at all. However, although many successful businesses in the past were able to get by without business credit cards, this doesn’t mean entrepreneurs today should pass on the opportunity of getting one.

It is true that the incorrect use of business credit cards can cause serious debt problems but if you know how to handle your credit card responsibly, then surely you and your business can benefit from the flexibility and conveniences that business credit cards bring. In this article, let’s focus on the advantages of small business credit cards and how you can use them to their full potential:

Keeps Your Cash Flow Steady. Every business is confronted with the challenge of keeping up with daily expenses. There may be times when your petty cash isn’t enough to cover for everything. On these occasions, having a business ...

If your business credit card has an interest rate of more that 0 % APR, then you are paying too much!

You may have already heard about zero interest credit cards but did you know that even business credit card providers offer zero APR cards as well? If you’re in business, you should certainly be interested to know what they are and why you need one. This article discusses the basic facts of 0 APR business credit cards.

Business Credit Cards with 0 APR

How do 0 APR business credit cards work? Technically, they are similar to regular balance transfer credit cards. If you currently have multiple business credit cards and is are trying to keep up with your existing balances with each card, transferring them over to a zero interest business credit card will help you get out from under your debts more quickly and easily.

As the name suggests, 0 APR business credit cards do not impose an interest ...

Separating business funds from personal finances should be every business owner’s concern. Surprisingly, not many entrepreneurs take this matter into serious consideration. For instance, many small business owners and home based business entrepreneurs prefer to use their personal credit cards with their business expenses thinking that it makes no difference. But a wise business owner should think about the long term complications that combining personal and business funds in just one account could cause later on.

At the start, you may find that using your personal credit card is enough. But as your business begins to grow and accumulate expenses, having a separate business account is indispensable. It will make a big difference not only in managing your business finances, but also in making finance-related decisions. In this article, let’s talk about the advantages of using business credit cards for your business expenses.

Business Credit Cards Means Easy Management

Why would it be easier to manage business finances using business credit cards? Because all your expenses are automatically included in your summary of accounts so you can be assured that you won’t miss a single purchase no matter how big or small that purchase was. You will be provided with monthly billing statements, along with quarterly and yearly summaries of your account.

These account summaries contain a detailed list of all the purchases you’ve made during the past months or the entire year. Purchases are also categorized so you can use it as reference ...