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Tuesday, August 18, 2009

How Do Business Credit Cards Differ from Corporate Credit Cards

The popularity of business credit cards among business owners has increase dramatically over recent years. To the delight of credit card companies, the rise of small businesses and home based businesses has amplified the demand for business credit cards.

Most business credit cards cater to small business entrepreneurs. Small business credit cards are specifically developed to furnish the needs of small and medium sized business sector. Credit card companies advertise business credit cards for small businesses on the internet, newspapers, radio, television and other types of media. The offers and advantages are publicized for everyone to see, so they can they choose the specific credit card for their business.

The general features of a small business credit card are monthly and yearly reports of purchases made on the account which is also available online, great opportunities for rewards, incentives and travel privileges, discounted rates of APR as part of introductory offers, grace period, and a 24-hour online access to your account.

However, large corporations are also given importance with the introduction of corporate credit cards. These type credit cards are special in it because not every individual or business owner can apply for it, unless the business owned is large enough to be a corporation. This is because corporate credit cards are tailor-made for a particular corporation and not for individuals. If a corporation wishes to apply for a corporate credit card, the management and the credit card issuers themselves discuss what specific services the company needs to better manage its finances.

Since large corporations house a large number of personnel, its expenses are different and more complex than small businesses. Corporate credit cards give its clients the option to distribute business credit cards to their employees which they can use for expenses made for the company. These expenses are scrupulously reflected on the credit report provided for the company. The corporate credit card assists in keeping track of all expenses made by its employees, including approval of funds and reimbursements made on behalf of the company. This system often requires a specialized software program to accommodate financial issues of the entire workforce and the diversity of the company’s expenses.

The major difference of small business credit cards from corporate credit cards is the payment method. For small business credit cards, the credit card is under the individual who applied for the credit card who is responsible paying off the credit. However, for corporate credit card, the credit card is named after the company itself, not the individual. Therefore, the payment responsibility is placed upon the managers or executives who run the corporation.

Corporate credit cards involve more complex procedures to secure an application. On the other hand if you are running a small business and wish to apply for a business credit card, you can see a list of business credit cards available on the market by visiting credit card review websites. You may also apply online once you have come up with the right choice.

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