Glossary

Business credit card

By Fredrik Filipsson, cofounder of Business Bank Index
Reviewed by Morten Andersen
Definition

A business credit card is a revolving card issued to a company for its spending, letting the business borrow up to a credit limit and either repay in full or carry a balance, usually with interest.

Information as of 24 May 2026Last reviewed 24 May 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

A business credit card lets a company spend on credit up to a set limit. Each month the business can repay the full balance to avoid interest or pay part and carry the rest, on which interest usually applies.

How a business credit card works

A business credit card is issued in the name of a business and is used for company purchases. The issuer sets a credit limit, the maximum the business can owe at one time. Spending draws down the available credit, and at the end of each billing cycle the business receives a statement. It can repay the full balance, usually with no interest on purchases when paid by the due date, or pay at least a minimum amount and carry the rest, on which interest is charged. Limits, interest rates, and any annual fee vary by issuer and applicant as of 24 May 2026.

Credit card, charge card, and debit card

The three differ in how and when money is owed. A business credit card lets you carry a balance over time up to a credit limit. A charge card must be paid in full each cycle and typically has no preset spending limit. A business debit card draws directly on the funds in the business account, so there is no borrowing. Choosing among them depends on whether the business wants revolving credit, full monthly settlement, or to spend only its own balance.

Cards for staff and expense control

Many business credit cards let the company issue additional cards to employees under one account, each with its own number and often a separate spending limit. Combined with statements and expense tools, this can help track who spent what. Applications usually involve a check on the business and may require a personal guarantee from an owner. The reporting features, fees, and any rewards differ by product, so compare the terms before applying.

Frequently asked questions

What is a business credit card?
It is a revolving card issued to a company for its spending. The business can borrow up to a credit limit set by the issuer, then either repay the full balance each cycle or pay part and carry the rest, on which interest is usually charged.
What is the difference between a business credit card and a charge card?
A business credit card lets the business carry a balance over time up to a credit limit, with interest on amounts not repaid. A charge card must be paid in full each billing cycle and typically has no preset spending limit.
How is a business credit card different from a debit card?
A credit card lets the business spend on borrowed funds up to a limit and repay later, while a business debit card draws directly on the money already in the business account, so it involves no borrowing or interest.
Does a business credit card require a personal guarantee?
It often does, especially for smaller businesses, meaning an owner agrees to be personally responsible if the business does not pay. Requirements vary by issuer, so confirm whether a personal guarantee applies before applying.

Definitions, fees, features, and eligibility change and vary by region. This page was last reviewed on 24 May 2026. Confirm current terms with the provider before applying.

Related terms and guides

Charge cardGlossary term Corporate cardGlossary term Business debit cardGlossary term Credit limitGlossary term All glossary termsGlossary Compare providersBanks