The number of business credit card products is astounding and can be a bit confusing for the newcomer. The greatest majority of all the products though are targeted towards the small business sector since they are said to be the force that drives the U.S. economy. They spend billions of dollars on business products and create millions of jobs every year. Credit card providers are making no mistake when they tailor packages that are targeted specifically for the small business sector. Their bottom line shows why this is a smart investment.
With that in mind you might be wondering about credit card options for much larger companies, government organizations and large corporations. Obviously they would benefit from the efficiency and convenience of credit cards when looking to procure goods and issue lines of credit for employees. Options for these businesses are rarely seen on the market and there is a reason for this; there options are usually customized to meet their needs, which is better than trying to fit them into a one size fit all package. Only a few credit card issuers offer this type of service because only a few of them have the capacity and wherewithal to do so.
The packages can be likened to an insurance health plan where it is customized for large organizations (specific criteria will be outlined to determine who qualifies) and an account management team within the lenders framework is set up to manage all the needs of the business. The system for management and the smooth running of these accounts can be extremely complex on the backend while making it simple for the clients to procure products without any hiccups, monitor spending, review the account whenever needed and issue lines of credit for employees to pay for company expenditures.
Small business credit cards differ from large corporate cards in the payment responsibility. Where the small business credit cards are linked directly to the owner of the business and the business itself, corporate cards are issued in the corporation’s name. The corporation is viewed as an individual and if there are any shortfalls in repayment, liability is placed on the corporation itself rather than on a specific individual. Within the corporation itself the human resources department might draft policies that will hold every cardholder responsible for reasonable use of the card according to the terms laid out in the policy. Therefore the employees assume responsibility for card misuse.
There are still a number of ways to differentiate small business credit cards from corporate cards but going into depth can be confusing to the average user. As a starting point, if you are looking for a card for your small business it is safe to assume that the business credit cards that you see advertised on websites or in the mass media are targeted solely for small businesses. The small business credit cards products can be so diverse that it is important to compare the options and examine the terms and conditions if you want to pick the best credit card for your business. Once you have identified the card you need submit your application online for faster processing and approval of your small business credit card.