A business credit card and a business line of credit may seem one in the same, but in reality, the two are slightly different. New business owners or existing owners looking to expand their businesses may have difficulty deciding which type of credit to obtain in order to make future business purchases.
Business Credit Card
A business credit card is usually obtained from a major credit card company. Credit cards are typically unsecured, meaning there is no collateral to put down in order to get a credit line through a major creditor. You may choose a business credit card if you will be using the credit for incidentals, such as employee travel expenses and other minor purchases. With a business credit card account, you can supply each employee with his or her own credit card and pay off the expenses each month at the same time.
Business Line of Credit
A business line of credit is different from a business credit card, in that you usually secure the line of credit through a local or national bank or lender. The limits on your line of credit are usually determined by the value of your business, the purpose of the credit line and whether or not you offer collateral to secure the credit line. Unlike a business loan, you may use your line of credit as you see fit – only withdrawing money when you need it. Business lines of credit are best used for making major purchases, such as a new company vehicle or a new piece of equipment.
For more information, go to Business Credit Card at http://www.unsecuredbizloan.com/business-credit-card