Business Credit Cards are those that are used towards business expenditure and not personal use. There are two categories of business cards – small business cards and corporate business cards. Small business cards are given to start-ups, and corporate business cards are given to big established companies. Normally, for small business cards, the liability stays with the user, but in case of a corporate business card, the liability will be either with the individual or company.
Types of Liability in Business Credit Cards
Individual Liability –
The employee using the card will be held accountable for the expense and in return, should pay the bill when generated. He can raise a reimbursement request with his/her company’s finance team, and he/she will be paid the amount spent. In case of a default, the employee will be questioned.
Corporate Liability –
Employees will spend money from this card and furnish the expense to the finance team. The liability, in this case, stays with the organisation, and they are expected to clear dues and pay bills on time.
Joint Liability –
In some cards, the liability is shared both by the employee and the company. These terms are cleared when the card is issued. One should also be clear about the terms in order to avoid any future conflicts.
ICICI Bank Business Credit Card Benefits and Advantages in India
For Business-Specific Benefits
Business Credit Cards have a different set of benefits which are similar yet different to personal Credit Cards. You get rewards when you spend money on advertising through the card, for booking flights and hotels, for shipping and other purchases related to business. A business Credit Card also gets a higher credit limit compared to a personal Credit Card.
Tracking spends is easier
A business Credit Card allows you to bifurcate your expenses into personal and business. Your personal and business expenses remain separate, allowing you to track your expenses easily.
Helps in building business credit
Just like your personal Credit Card, a business Credit Card helps you in building a credit history for your business. This credit history helps you in availing of loans, credit line, leasing and even get insurance policies for your business. However, ensure that your history stays positive as missing or skipping any due will directly impact your business score.
How to get a Business Credit Card?
One can apply for a Business Credit Card online or visit the branch of any nationalised bank to obtain one. The application process is also like any other personal Credit Card. You need to mention your occupation type, mobile number, annual income, etc. and the bank will generate the ideal Credit Card for you.
Learn more about Business Credit Card and apply online.