Understanding Business Credit Cards
Business credit cards are designed for companies to separate business expenses from personal ones. They offer benefits such as expense tracking, reward points, and credit access tailored for business needs.
Key Features
- Higher credit limits than personal cards.
- Detailed expense management, like segregated bills and employee spending controls.
- Offers on fuel, travel, and office supplies.
- Reward programs that suit business expenses.
Who Is Eligible?
- Suitable for small business owners and startups.
- Applicants must have proof of identity, business existence documents, and good credit history.
- Income expectations vary based on card tier.
Fees and Charges
- Annual fees depend on card category; some offer waived fees for the first year.
- Interest rates vary and may be higher than personal cards.
- Late payment charges apply if bill due date is missed.
- Cash withdrawal fees and foreign transaction charges may apply on business trips.
How They Work
- Business owners assign cards to employees with spending limits.
- Monthly statements show business expense tracking.
- Earn business-oriented rewards or cashback.
- Timely bill payments help build the company’s credit history.
Business credit cards can help control costs, monitor spending, and earn rewards, but applicants should review fees, interest rates, and eligibility criteria before applying.