What is a Business Credit Card and Why is it Important?

23 January, 2024

Synopsis

• A Business Credit Card helps you access quick short-term financing and streamline cashflow.

• Along with a line of credit, a Business Credit Card provides an interest-free period, rewards, and EMI payments.

• You can apply for a Business Credit Card in person or online, as per your convenience.
  
  

Running a business isn’t an easy task. As a business owner, you’re charged with significant responsibility, especially when managing cash flow and expenses. From day-to-day transactions and distribution of funds to acquiring capital when you’re strapped for cash, you have to oversee it all. Step in the Business Credit Card! A Business Credit Card can be a real boon for entrepreneurs and make running operations easier than you could imagine. If you’re unsure how a Business Credit Card works or why you should apply for one, continue reading and find the solution to all your cash flow concerns.

What is a Business Credit Card? 

When it comes to understanding what is a Business Credit Card, you need not look further than the name. Any Business Credit Card definition will tell you that it is a Credit Card specifically created to help entrepreneurs manage expenses related to their commercial venture. Say, as a business owner, you’re strapped for cash and need to inject funds into your operation immediately. A Business Credit Card is a quick and convenient way of availing a short-term line of credit. While a Business Credit Card is not for personal use, you can rely on it to manage and control employee spending. A Business Credit Card not only helps you distribute funds in a controlled manner but allows you to keep track of funds.

In several ways, a Business Credit Card works similarly to a regular Credit Card. You can pay for products and services using credit extended by the issuing bank or financial institution. You must repay the borrowed amount, with interest rates as applicable. However, Business Credit Card holders also get to enjoy certain exclusive benefits. From cashback and bonus points to travel perks, a Business Credit Card is more than just a way of building business credit; it helps you simplify cash flow management and operations to a great extent. 

Why Is a Business Credit Card Important? 

Now that you’re clearer on the Business Credit Cards’ meaning, let’s look at why you should apply for one in greater detail. Here are the benefits of a Business Credit Card that make it such an appealing way to acquire short-term financial assistance:

• Repayment Period Without Interest
  
  If you apply for a Business Credit Card, chances are you’ll enjoy a window of time when you don’t have to pay any interest on the line of credit. An interest-free repayment period can range anywhere between 30 to 48 days. No matter what the duration, the sum saved can go a long way in helping you streamline operations and handle business expenses. 
  
  

• EMIs
  
  Anyone familiar with modern banking knows how Equated Monthly Instalments (EMIs) have revolutionised repayments. You can repay the amount due on your Business Credit Card via instalments. The feature is handy when you must divert funds towards a business emergency and can’t make a single lump sum payment to clear your Credit Card dues. 
  
  

• Rewards and Benefits
  
  Swiping your Business Credit Card becomes even more appealing when you learn of the rewards and benefits associated with the same. When you pay for an expense using your business card, you might receive cashback, reward points, air miles, and so on. You can also expect to enjoy offers on dining, air travel, office utilities, etc. Slightly high-end business cards even allow you access to airport lounges and travel insurance coverage. 
  
  

• Cash Advance
  
  The line of credit associated with a Business Card is not limited to paying for expenses. You can also opt for a cash advance if you need funds urgently. Head to the nearest ATM that accepts your card and withdraw funds per your bank’s limit. 
  
  

• Easier Management
  
  As a business owner, one of the most important tasks you must oversee is cash flow management. A Business Credit Card allows you to categorise spending, helping you allocate funds easily. You can also control and monitor employee spending and peruse reports to verify expenditures. Since you’re the central authority concerning the card, you can restrict misuse and identify fraudulent activity. 
  
  

How to Apply for a Business Credit Card?

In the digital age, applying for a Business Credit Card is easier than ever. Before applying for a Business Card, check the features, benefits, and charges associated with the particular card. Once satisfied, you can visit the bank in person or apply for the card online. Submit the required documents, and your application is complete. If you meet the eligibility criteria and have a decent credit score, your application will be approved, and you’ll receive a Business Credit Card shortly.

Commercial Credit Cards at HDFC Bank: The Business Regalia Credit Card

Since you’re more familiar with a Business Credit Card’s meaning and importance, you can have your pick from the choices available. However, if you’re looking for a card with plenty of management features, a robust rewards system, and rapid customer service, you can’t go wrong with Business Cards offered at HDFC Bank. The perfect amalgamation of business and luxury, the HDFC Bank Business Regalia Card helps you earn 4 Reward Points on every ₹150 spent, clear vendor/supplier payments, and enjoy benefits like access to airport lounges, cash withdrawal, a 50-day interest-free period and more.

Streamline day-to-day business expenses and take your venture to new heights with the HDFC Bank Business Regalia Credit Card.

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Credit Card approvals at the sole discretion of HDFC Bank Limited. Credit Card approvals is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.