What is a corporate credit card?
A business card is simply a credit card issued to a limited company or sole trader, as opposed to an individual consumer. It can be used as a way of facilitating staff expenses, helping cash flow or even temporarily financing the business.
How do corporate credit cards work?
Corporate credit cards work a lot like ordinary credit cards by borrowers getting a credit limit and the balance can be paid over time, subject to a minimum amount paid monthly. You can also choose how many credit cards you want in your account depending on how many employees you have – or how many employees you want to issue a card to. Just like a personal credit card, a better creditworthiness for companies will usually provide you with a better interest rate or other benefits, such as interest-free periods, reward or reimbursement. However, it is worth noting that corporate credit card providers can also check your personal credit points that can also affect the performance of all applications.
So you get more protection if you pay with a credit card than if you pay with a debit card, cash or check under something called Section 75 of the Consumer Credit Act.
So 5 Business Credit Card Myths That Can Cost Your Business By Thony Norelli
1. I can not get a credit card for my boot
2. They are too expensive
3. My personal credit card is just fine
4. They do not help me build credit
5. They are too risky