Business Credit Cards

Everything you need to know about corporate credit cards

If you’ve got a small business, you may be concerned about your business’s credit score. Business credit works differently than personal credit, but one thing remains the same: both business and personal credit ratings need to be built up in order to take advantage of loans and credit issued by credit card companies and banks. In order to do this, small businesses need business credit cards to establish credit history and take care of any business expenses.

Types of Corporate Credit Cards and What They’re Used For

You may find that you require a credit card to take care of certain business expenses, especially if you’re business involves traveling. To find the best card for your type of business, you may find it helpful to research different types of credit cards for business:

• Prepaid credit cards. These allow your employees or you to preload the card before major business trips or when buying items for the business. They are preferable to regular cards because minimum payments do not need to be made and they carry low, if any, fees for cash advances and balance transfers.
• Rewards credit cards. These allow your employees to achieve rewards when they spend. For example, a travel rewards card enables your employees to earn air miles to use for future business trips, or they can earn cash back on a cash-based rewards card.
• Secured credit cards. These allow your business to achieve credit without any credit history. If you do go this route, be prepared to do your research — it can be risky.
• Small business credit cards. Tailored especially for small businesses, these cards can help you build credit history while keeping the interest rates and fees low so that you can invest in your business and not in your credit card payments.