{"id":3568,"date":"2023-01-25T12:47:46","date_gmt":"2023-01-25T17:47:46","guid":{"rendered":"https:\/\/www.northone.com\/blog\/?p=3568"},"modified":"2023-01-25T12:47:47","modified_gmt":"2023-01-25T17:47:47","slug":"business-charge-cards","status":"publish","type":"post","link":"https:\/\/www.northone.com\/blog\/financial-management\/business-charge-cards","title":{"rendered":"Business Charge Cards: Meaning and How to Pick One"},"content":{"rendered":"\n

Business charge cards are essential for running the day-to-day operations as a small business owner. Whether you\u2019re purchasing office supplies, paying utility bills, or picking up last-minute materials to fulfill an unexpectedly large order, having a charge card at the ready makes it easy to buy the things you need. Most importantly, charge cards help you avoid muddying the water between your business and personal finances.<\/p>\n\n\n\n

Keep reading to learn the difference between a charge card and a credit card, and how to go about picking the right one for your small business.<\/p>\n\n\n\n

<\/span>What is a business charge card?<\/strong><\/span><\/h2>\n\n\n\n

A business charge card allows you to make purchases using credit regardless of how much money you happen to have in the bank\u2014it\u2019s not tied to your checking account. In this way, it functions similarly to a credit card.<\/p>\n\n\n\n

Despite this similarity, though, charge cards and credit cards have two major differences. The first key difference is that while you can carry the balance on your credit card<\/a> from one month to the next, a charge card\u2019s full balance must be paid off at the end of each billing cycle. The exact duration of a cycle can vary depending on your card issuer and the exact parameters of the card you\u2019ve selected, but it\u2019s typically somewhere between 30 and 60 days.<\/p>\n\n\n\n

A business charge card also differs from a credit card in that it has no established spending limit. This means you have access to funding without having to wait for lender approval, as you would with a credit card in the event you need to exceed your spending limit to make a major purchase.<\/p>\n\n\n\n

For example, if your business needs to make purchases to complete a rush job, you can do so with a charge card without fear of exceeding any preset limits. You still need to pay the balance in full at the end of the billing cycle, but being able to spend money without limits allows you to take advantage of opportunities to quickly make that money back.<\/p>\n\n\n\n

<\/span>How to choose the right charge card for your business<\/strong><\/span><\/h2>\n\n\n\n

With so many options to choose from, it can be overwhelming to determine which card is the best fit for your small business. But before you jump into the search, you need to carefully consider your financial circumstances, the way your business is run, and what exactly you want from a charge card.<\/p>\n\n\n\n

Here are a few considerations to weigh:<\/p>\n\n\n\n