What Makes Small Business Credit Cards Different From Corporate Cards

Everyone in business is aware that business credit cards have become increasingly popular. Business credit cards have been receiving special attention from credit card issuers: They recognize the business potential created by the rising demand for business credit cards among small and home-based businesses, and are intent on tapping into it.

The major credit card companies designed business credit cards purposely to address the needs of these small and medium sized companies. Wherever you look - on the Internet, radio and broadcast media, newspapers and other print media - you will find the card issuers advertising these business credit cards, and that the adverts specifically target small to medium enterprises. The point: to inform their target market about the features and benefits of their specific business credit card offerings.

So, how did the business credit card companies design their small business credit cards? Although there are variations from one business credit card package to the next, the basic features generally cover cash discounts for purchases of business-related supplies, a wide array of opportunities for rewards, travel privileges, frequent flier miles, and very low annual percentage rates for balance transfers in their introductory periods. The small business credit card holder also receives periodic reports as rule, which summarizes purchases made on the business credit card account. These reports can normally be viewed online and can be downloaded into a QuickBooks file.

Like small business credit cards, large corporations have equivalent corporate business credit cards. These are markedly different because corporate business credit cards (or simply corporate credit cards), are specifically designed for the corporation itself and not for the individuals inside the corporation. Once a corporation decides to apply for a corporate credit card, the officers enter into negotiations with the credit card issuers to hammer out the specific features of the card and how the business credit card will integrate with the company’s finances and financial systems.

The corporate business credit cards are usually distributed to employees to use for those expenses they would normally incur on behalf of the company. Like small business credit cards, corporate credit cards also track the expenses incurred by each cardholder and individual reports are submitted to management. Because of the different, and often more complex, expenses incurred by large corporations, the system of reporting generally requires a specialized software application to resolve these financial complexities.

The single most significant difference between small business credit cards and corporate credit cards is the mode of payment. Generally, for small business credit cards, the credit card is the responsibility of the primary individual applicant who is also responsible for paying the balances or installments due. In the case of the corporate credit card, the credit card is issued in the name of the corporation. Primary responsibility for payment thus resides with the officers of the corporation.

The process of issuing a corporate business credit card is much more complicated than that of a small business credit card. For the small business owner who wishes to apply for a business credit card, it is quite simple actually; there are even websites where you can compare the different business credit cards and submit online applications once a choice is made. This is a luxury that a large corporate in need of a business credit card account, simply does not have.

Advanta Business Credit Card

In the competitive business credit card market, some financial institutions have opted to become niche players. This decision to specialize is primarily driven by the need to gain market share.

One of these niche players is the Advanta Bank Corporation. Advanta is touted to be among the largest issuers of business credit cards for the small business market. That is quite possibly an accurate observation since Advanta is known to have focused exclusively on the small business market, and its business credit cards simply reflects this focus on the requirements of small businesses.

You are clearly reminded of this when you visit the Advanta web site to look at their business credit card offerings: there is only one featured card, the Advanta MasterCard Platinum Business credit card. This is a cash back rewards business credit card which offers you 5% discounts on certain items and a 1% general discount, on others.

There is an ongoing drive from their side to partner with more companies that sell products and services which form a part of the normal operating expenses of small businesses, to increase the appeal of their credit card offering.

The Advanta business credit card packages are competitive from a pricing point of view. The zero-percent introductory annual percentage rate on balance transfers runs for fifteen (15) months, which is longer than most other business credit cards. Just as important to the small business owner, the APR on balance transfers after the introductory period is also one of the lowest, at 7.99% fixed interest. The market average is a full percentage point higher. Most other business credit cards have both higher APRs and variable interest rates.

To add luster to their small business offering, Advanta business credit cards distribute the cash back bonuses earlier than many other business credit cards. There is an automatic cash back payout feature which means you start receiving your cash back checks for every $50 you have accumulated immediately. This could help support cash flow to a small measure.

There is, if you prefer, an opportunity to convert to travel rewards instead. Where many other business credit cards will allow free travel only upon reaching 15,000 or even 25,000 rewards points, Advanta business credit cards allows free travel upon reaching 10,000 rewards points.

In keeping with its niche strategy to cater to the needs of the small business credit card market, Advanta – like many other large banks - make a comprehensive library of small business resources available to their business credit card holders where they can access small business guides and small business tools.

Small business guides typically offer business credit card holders assistance in the preparation of business plans and marketing plans, and provide information on specific financial products. There are normally tips on how to win lucrative government contracts as well as tips on how to protect your personal assets. The latter is something most small business owners consider important.

Small business tools generally provide business credit card holders with easy-to-use templates of various official government forms (for tax purposes or for government contracts), samples of business documents such as business letters, contracts, forms, generalized statements of policies, as well as financial spreadsheets to help them manage their finances.