Small enterprise bank card vs. company bank card: Which is correct for your corporation?

As you are rising a enterprise, having a bank card might help you handle your money stream, construct your corporation credit score, entry particular bank card rewards, and extra.

As you select a bank card for your corporation, you may be questioning which sort of card is finest for you: a small enterprise bank card or a company bank card? Whereas the 2 have some similarities, they provide totally different perks and options and are designed for several types of companies.

Maintain studying to be taught what small enterprise and company bank cards are, how they differ, and methods to determine which is best for you.

What’s a small enterprise bank card?

A enterprise bank card is one that enables companies of all sizes to handle their spending. Enterprise bank cards can be utilized by entrepreneurs with no workers or massive corporations with many workers and excessive income. 

Enterprise bank cards have a easy qualification course of that normally requires the enterprise homeowners to supply a private assure, which means accepting legal responsibility for the corporate’s debt on the bank card. Many enterprise bank cards enable corporations so as to add workers as licensed customers, in addition to set spending limits and observe their worker purchases.



What’s a company bank card?

A company bank card is one that’s held by a company or eligible restricted legal responsibility firm (LLC). These playing cards are designed for big corporations which have hundreds of thousands of {dollars} in annual income, excessive annual spending, and several other workers. Company bank cards enable corporations to grant many worker playing cards and permit the corporate to trace bills and set spending limits for his or her workers simply.

Company bank cards are tied to the funds of the corporate. To qualify for these playing cards, you will have to show that your corporation is creditworthy and are prone to be required to share monetary statements to show income, spending, and skill to pay.



Small enterprise vs. company bank card: What is the distinction?

There are a number of essential variations between small enterprise bank cards and company bank cards:

Legal responsibility

With a small enterprise bank card, the corporate’s proprietor is usually instantly responsible for bank card debt. That implies that if the corporate goes out of enterprise or cannot pay its money owed, the enterprise proprietor is accountable.

However within the case of a company bank card, the enterprise is accountable for its money owed. The enterprise proprietor is not personally liable.


Small enterprise bank cards are broadly accessible. Anybody with a enterprise of any dimension can apply, and so long as your private credit score is adequate to qualify, then you possibly can open a bank card.

Company bank cards, then again, have stricter eligibility necessities. Generally, card issuers require that corporations have a minimum of $four million in income to qualify. Some issuers may require a specific amount of annual spending or a sure variety of workers.


Some small enterprise bank cards cost an annual charge, however many are totally free to make use of. Even people who do cost charges are normally restricted to lower than $100. Then again, company bank cards are likely to cost larger charges due to the extra options they provide.

Credit score affect

While you apply for a small enterprise bank card, because the enterprise proprietor, the bank card issuer is prone to run your credit score to find out in case you qualify for the cardboard. Moreover, in lots of instances, the cardboard issuer will report your corporation bank card exercise to the credit score bureaus, which suggests your organization’s spending can affect your private credit score.

While you apply for a company bank card, the cardboard issuer will depend on your organization’s creditworthiness to find out in case you qualify for the cardboard. And quite than reporting your spending to your private credit score, they’re going to report it to your corporation credit score.


Many small enterprise bank cards include reporting options that enable enterprise homeowners to trace their spending and their workers’ spending simply. However these options are much more sturdy with company bank cards.


Many small enterprise bank cards include related cashback and journey rewards to what you’d discover on private bank cards. These rewards enable enterprise homeowners to realize extra cash and perks on spending they’re already doing. Company bank cards are likely to have fewer rewards. 

Must you get a small enterprise bank card or company bank card for your corporation?

Are you questioning whether or not a small enterprise bank card or company bank card is best for you? A company card could be extraordinarily useful in case you personal a big enterprise with hundreds of thousands of {dollars} in income and lots of workers. It reduces your private danger, makes it straightforward to handle worker spending, and extra.

That being stated, company bank cards aren’t proper for all companies. Bank card issuers typically require that corporations have hundreds of thousands of {dollars} in income earlier than they’re eligible for a company card. Moreover, the perks of company bank cards are offset by some disadvantages, similar to larger charges and decrease rewards-earning potential. If your corporation has decrease income than is mostly required, just a few workers, or takes benefit of the rewards in your present small enterprise bank card, then a company card will not be best for you.

Small enterprise bank card vs. company bank card FAQ

Does a company bank card have an effect on your private credit score rating?

No, a company bank card will not have an effect on your credit score rating in the identical approach {that a} small enterprise bank card would possibly. It’s because the enterprise, not the person, is responsible for the debt.

How do you qualify for a company bank card?

To qualify for a company bank card, your corporation have to be each legally and financially established. They’re usually solely open to companies with hundreds of thousands of {dollars} in income and passable enterprise credit score historical past.

What’s the finest small enterprise bank card?

Small companies have loads of bank cards to select from to assist handle money stream of their companies. Go to our round-up of the finest enterprise bank cards in the marketplace proper now that will help you select the correct one for you.

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