Business_Credit_Cards_-_Corporate_and_Small_Business_Credit_Cards_Compared

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					Business Credit Cards - Corporate and Small Business Credit Cards
Compared

Word Count:
622

Summary:
This article compares the difference between corporate and small business
credit cards.


Keywords:
Business Credit Card,Business Credit Cards,Compare Business Credit Cards


Article Body:
Business credit cards come in a variety of forms, which can seem a little
overwhelming to someone that doesn't know the difference between the
different types of cards. When it comes to business credit cards, the
largest percentage of the market is small business owners. In fact,
small businesses are the driving force behind the American economy and
create the most new jobs every year. Therefore, credit card companies
have developed business credit cards with the small business in mind, but
there are some differences between business credit cards for small
businesses as compared to those for corporations.

Where You Find It

One major difference between corporate credit cards and small business
credit cards is how you found out about it in the first place. For the
most part, small business credit cards are those that you see advertised
on the Internet and for which you might receive a pre-approval
invitation. Corporate credit cards are not advertised in the mass media
because they are set up differently, operate differently, and target a
different group of people.

Customizing

When it comes to small business credit cards, you have to take what you
can find. Of course, you can compare business credit cards to find the
ones that suit you best, but you don't really have much room for making
changes to the card to meet your needs. When it comes to corporate
credit cards, the business can request options to be custom-made to work
with the company. The reason for this increased flexibility comes down
to revenue. A corporation placing millions of dollars of transactions on
the credit card can have more say in how the card is set up. This
ability to customize is another reason why you generally don't see
corporate business credit cards being advertised within the mass media.

Of course, corporations generally have greater needs when it comes to
their financial responsibilities than a small business owner. Options
they might need to have included on the card are often meant to help the
corporation keep track of expenditures and to review and approve them in
order to reimburse employees for entertainment and travel. The ability
to track all of these expenses so closely requires the use of specialized
software that is designed to interface with platforms from human
resources.

Payment Responsibility

Another major difference between corporate credit cards and small
business credit cards is the matter of who is responsible for repaying
the debt. As a small business owner with a sole proprietorship, you and
the business are one and the same. This means you are personally
responsible for repaying any debt that may have incurred. If you default
on payments, it is your personal credit history that is hurt. A
corporation, on the other hand, is separate from the owner. Therefore,
the corporation is responsible for repaying the debt. As such, the
corporation may default on the credit card loan and file for bankruptcy,
but you do not personally file.

It's in the Name

Since a small business owner is generally a sole proprietorship and you
are personally responsible for the debt, another difference between
corporate credit cards and small business credit cards is the name on the
card. In the case of a small business credit card, your name is
generally what is listed on the front of the card. A corporate credit
card, on the other hand, will have the corporation name on the front. In
addition to the corporation name, it will usually have your name as well
in order to verify that you are an authorized user. This also helps the
corporation track the expenses of each employee. But, the primary name
is the corporation name since financial responsibility falls back on the
company.