It is a fact that businesses run on finance. Business owners are in constant need of funds to finance their business-related expenses. A bank is not available all the time, and if it does, not all sorts of expenses are loaned out. 

This creates a need for a business credit card and some high risk credit card processing. If you are a budding entrepreneur, don’t miss the beat and keep reading to learn about this exciting finance opportunity.  

What Is a Business Credit Card In Simple Language?

A business credit card is no rocket science! It is similar to a traditional credit card to pay for your expenses. However, the catch lies in the nature and type of expenses. 

Using a business credit card, you can meet all your expenses incurred during your business. 

You can also distribute these unique cards to your employees or staff members, using which they can pay for the business expenses on your behalf.

Are You Eligible For A Business Credit Card?

If you are a business owner, then you shall be able to qualify and obtain a business credit card if you have:

  • A decent credit score (preferably more than 670)


  • You are willing to keep your expenses separate and distinct from your business ones

Below is a list of all the eligible business owners who can obtain a business credit card:

  • Sole proprietors running small businesses
  • Partnership firms
  • Freelancers and independent contractors
  • Professionals have their clients and professional practice
  • Established business owners have a significant turnover
  • Corporates
  • Limited Liability Partnerships

This list covers almost all the business types. So, practically, if you are earning any income which is not taxed under the head “Salary Income,” you are eligible to obtain a business credit card. 

The Benefits of Having a Business Credit Card?

Finance is undoubtedly the heartbeat of every business organization. A timely credit facility can fix those impacted cash flows and help the organizations meet their business expenses without any significant hiccups. 

Let us gain an understanding of the several advantages of having a business credit card:

  1. Gives You High Credit Limits

One of the most amazing benefits of having a business credit card is that it gives you a credit limit, far more than what you get on a personal credit card. Further, if you still need to enhance your credit limit, most credit issuers are more than happy to do so, provided you carry an excellent credit score.

To meet your office rentals or pay for your factory bills using your business credit card and get rewarded in cash backs and points. 

2. Get Free Cards for Your Employees

Most issuers provide free business credit cards to the employees of the company. So, there is no need to circulate one single credit card among the employees when making expenses when there is an availability of multiple credit cards at no additional cost. 

3. Helps You To Separate Personal and Business Expenses

Besides providing you with some ready credit (subject to your credit limit), business credit cards also help you segregate between your personal and business expenses. Such a distinction comes in handy when filing tax returns, conducting business audits, accounting, etc. 

 The Disadvantages of Having a Business Credit Card?

Despite its widespread usage, the several flexibilities and rewards, a business credit card is often marred by several disadvantages, such as:

  1. Lacks Liability Protection

If you have a personal credit card, you might be very well aware of the various protections extended by the Cards Act of 2009 to the personal credit cardholders. Some prominent ones to note are:

  • If there is a situation where you are victim o f fraud, then you will have Zero liability towards the credit card dues
  • An extension of a grace period of 21 days
  • A 45-day advance notification in case of an interest rate hike, etc.

However, all these benefits vanish as soon as you become an owner of a business credit card. Some lenders can still offer you these benefits, but reading the terms and conditions is inevitable. 

2. Lenders Conduct Deep Scrutiny

The level of assessment or scrutiny is relatively higher when issuing a business credit card. In addition to your personal information, such as social security number, date of birth, and address, issuers are also interested in knowing about your business revenue, EIN, trade name, industry, etc.

With so much information on offer, there are high chances that you might not be allotted a business credit card. 

Additionally, applying for multiple cards issued by different lenders in a short period further impacts your credit score.  


As long as you are a business owner with decent credit scores, you are eligible for obtaining a business credit card. It will give you some high credit limits and allow your employees to have a card of their own. 

However, owning a business credit card might be challenging due to deeper assessment. Also, it will not offer you any protection benefits granted by the Cards Act, 2009.

Get informed, assess your needs, and make your own decision. 


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