The Advantages and Disadvantages To Business Credit Cards

Business credit cards have many advantages over the alternatives: fuel cards or charge cards. A fuel card can only be used in a petrol station to buy fuel. As if your van driver needs to purchase window wash, a car wash or other vehicle related items then they can. If they had a fuel card they would need to go get money from petty cash. This is not so convenient and in some circumstances not available. Business credit cards enable the user to have the freedom to get what they need to do their job when they want.

The disadvantage here is that employees can abuse the card by purchasing personal items on it which are not for business use.

Charge cards are great and are almost the same as credit cards apart from one fundamental difference. You have to pay them back at the end of the month. With credit cards you do not. This is advantages if your company has cash flow problems, as they can pay just the minimum payment off and not the entire bill.

The disadvantage to this is that it means your company is getting into debt. Also company credit cards usually charge higher interest than personal credit cards. This is why when you get a business credit card it is important to look on the internet at websites like this one and compare credit cards. This will enable you to find the best deal on your business card.