Business credit cards are designed
to optimize the business world's
experiences, valuable both for a
one-man business up to a large
corporation. All credit cards function
in the same basic manner, allowing the
user to charge a purchase or cash
withdrawal to the credit card account,
which is to be paid at a later time at
a predetermined interest rate.
Businesses, however, have needs
different from students or average
consumers.
Business credit cards often have
high credit limits, sometimes
over one hundred thousand dollars.
Interest rates might be substantially
lower than those of an average consumer
credit card. Annual fees may be waived,
as might limits on earned rewards.
Obtaining a business credit card
requires good to excellent
credit, but an individual
person's credit rating may be less
important than the business's credit
rating. A business might have to prove
itself to be profitable, and even offer
sensitive financial information in
order to obtain exceptionally high
credit limits. Business owners may also
have to personally guarantee the credit
limit.
Features and rewards designed to appeal
to businesses include travel
incentives, quarterly and annual
business account summaries, cash back
on purchases, and discounts with
airlines, car rental agencies, hotels,
telephone and cable services, and
shipping services. Accumulated reward
points may be used for merchandise,
travel, office equipment, gasoline
purchases, and employee gift cards.
Fraud liability is often waived
entirely. Cards may be personalized
with the user's company name or
logo.
Many business credit cards
offer large daily cash
advances, automatic travel life
insurance, and special deals on
automobile insurance and business
liability insurance. Multiple cards
might be issued so that several
employees may share one account. Each
employee's card may have its own credit
limit. Some cards even offer a business
assistance services such as gathering
business information, making travel
reservations, and compiling
employee-specific expense reports.
Additional incentives to a business
considering such a credit card may
include deferred or waived interest on
balance transfers, 24/7 live customer
support, free checking from the same
credit card account, or a large
starting balance of reward points. They
may also offer immediate card
replacement due to loss or theft, or
special insurance coverage for legal or
medical assistance.