The Battle of the Business Cards Small Business Credit Cards vs Purchasing Cards
If you’re the owner of a small business, your company may be eligible to apply for one of two types of cards small business credit cards or purchasing cards. Small business credit cards are issued by banks and other credit card companies, while purchasing cards are offered through vendors themselves, such as office supply stores.
Both of these offer similar advantages and disadvantages; however, there are several things you should consider before deciding whether to apply for one or the other. First, let’s examine what each type offers, along with the major differences between them…
What is a small business credit card?
A small business credit card is a credit card that is specifically designed for small businesses. It usually has special features and benefits that are tailored to the needs of small businesses, such as lower interest rates, higher credit limits, and cash-back rewards.
In contrast, what is a purchasing card A purchasing card is similar to a corporate credit card but typically can only be used by one person who typically purchases on behalf of their company? They are very similar in size and shape to a credit card but have Purchasing Card written on them instead of Credit Card.
What is a purchasing card?
A purchasing card, also called a business credit card, is a type of credit card that allows businesses to make purchases without having to front the cash. This can be helpful for large purchases or for emergency expenses. However, there are some drawbacks to using a purchasing card. For one, you may be charged higher interest rates than with a personal credit card.
Additionally, if you don’t use the card wisely, you could end up in debt. It’s important to keep track of what you spend your money on and how much is left in your account at all times. When it comes down to it, while purchasing cards have their advantages, small business credit cards are usually better because they offer more protection against fraud and higher limits on spending.
How are they different?
When it comes to business cards, there are two main types small business credit cards and purchasing cards. Both have their own pros and cons, so it’s important to know the difference before deciding which one is right for your business.
The biggest difference between these two options is that with a credit card, you’re borrowing money from a bank and paying interest on what you borrow (assuming you don’t pay off your balance in full every month). With a purchase card, the company pays for purchases up front by depositing funds into an account set up by the issuer.
Which is right for you
There are two types of business credit cards small business credit cards and purchasing cards. Both have their pros and cons, so it’s important to know which one is right for your business. First off, with a small business credit card you will likely be approved more quickly than with a purchasing card. With that said, if you need to make large purchases in order to grow your company then a purchasing card may be the better option because they often come with higher limits.
Secondly, while both offer rewards programs that can provide additional benefits (travel rewards on some), only purchase cards can be used at any retailer (even online). If you’re looking for versatility then this is an important factor. Finally, depending on your bank or institution there may be annual fees associated with either type of card – even if you don’t carry a balance from month to month or year to year respectively – so look into what those are before committing!
2 tips on how to pick the best option
- Consider what you’ll use the card for most often. If you plan to use it primarily for business expenses like inventory and office supplies, a purchasing card might be a better option. However, if you also want to use it for things like travel and entertainment, a small business credit card might be a better fit.
- Compare the interest rates and fees associated with each type of card. In general, small business credit cards have higher interest rates than purchasing cards. However, they also tend to offer more perks and rewards, so it’s important to weigh all of your options before making a decision.