Commercial credit cards

Our business can count on a series of tools that facilitate our transit through the business world, one of them are the commercial credit cards. These credit cards are issued especially for business purposes and help our business to promote future loans that we may request. Unlike personal credit cards that have an individual use, business credit cards are only for businesses. They can be functional for all types of ventures, whether small or large business owners, always helping us to separate our personal and business numbers.

How it works.

To explain in a simple way how credit cards work, we use the money borrowed from the bank in exchange for interest on the amount we need. It is important to know that commercial credit cards have slightly higher interest rates than a common loan. Because the debt on this credit is unsecured, this can cause some risk for your creditors. But it is usually easier to process the commercial credit due to the automation of the system, and this is its function.

Credit limit.

As we know there are limits when we work with numbers. Our credit account with the bank also has certain loan limits established regardless of your business savings or checking account. The effectiveness of this credit is that we will have to pay back the requested amount plus a percent interest rate within a time limit. This can be twelve or twenty-four months, or depending on the amount, type of business or other factors that are put into consideration by both parties.

What would this loan be useful for?

There is always an advantage to be gained from these bank loans, for example they serve as overdraft protection. When we have a negative balance in our current account, the bank makes up the difference thanks to the commercial credit. The bank always establishes a transfer fee for this overdraft protection operation. What is also an advantage is that the fee will be lower than the fees established for this type of operation.

Large purchases.

One of the benefits of these commercial credit cards is that they are very functional for large business purchases. Sometimes we do not have enough capital in cash at the moment and the credit serves to cover these purchases of importance for our business.

For long term credits there is a zero or very low interest to pay for our purchase, but in case of not returning the capital in the agreed period they will begin to charge a percent interest surcharge. Many entrepreneurs do not under