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Frequently asked questions
Everything you need to know about business credit cards
What is a business credit card?
A business credit card is a credit card assigned to your business rather than an individual. It offers a revolving credit line and a monthly credit limit that can be used to pay off your company expenses. It's a convenient solution when a business needs to quickly access additional funds for short-term needs or increase its purchasing power. Business credit cards often come with extra benefits for you and your company like business rewards, cards for your employees or accounting software integration.
How to apply for a business credit card?
The application process will be different for every credit card provider, but you can usually apply online, by phone or by visiting a branch. You will be asked to provide several details so it’s worth having the required information to hand before you start your application. These may include your business details, personal details, desired credit limit and what you are planning to use the credit card for.
To apply for the Capital on Tap credit card, click here.
How does a business credit card work?
A business credit card works the same way as your personal credit card but instead of being issued to your personal account, it’s issued to your business account. Unlike your personal credit card, a business credit card should only be used to finance your business expenses.
Why should I get a business credit card?
A business credit card can help you manage your cash flow - you can simply use your pre-approved credit without having to apply for finance every time you need extra funds and the cost can be spread over several months. Just remember that once your interest-free period is over, you will be charged interests if you don't pay your balance in full.
Business credit cards are not only an easy way of keeping your business expenses separate to your personal ones but they also come with attractive rewards like cashback or loyalty scheme points on your business spend and other benefits like accounting software integration and supplementary cards for your employees.
Can a business credit card be used for a personal use?
No, business credit cards need to be used for legitimate business purposes like corporate travel, phone and internet bills, inventory, supplies or equipment. Business expenses can be submitted to the IRS and offer tax deductions and savings on your company tax bill. There may be an overlap between business and personal expenses, therefore, it’s crucial that business expenses are not abused or it can make your tax return void and incur serious penalties.
Is a business credit card personally guaranteed?
A personal guarantee is a legally binding agreement that holds you responsible for paying off your credit card debt. As business credit cards are a type of unsecured finance, most providers will require a personal guarantee.