Business Credit Card vs. Line of Credit: What’s the Difference?

1. Business Credit Card vs. Line of Credit: What’s the Difference? A business credit card and a small business line of credit can help small business owners pay for expenses as they come up. They each have their benefits and specific situations where one may be a better fit over the other. Here’s what you need to know about choosing between a business credit card vs line of credit. Benefits of a Small Business Line of Credit A business line of credit is similar to a credit card. Lenders will establish a credit limit for the maximum amount of money they will lend you and you can tap as much as you need up to your limit. Like a credit card, you pay interest only on the amount you borrow. The amount you borrow is deposited into a business checking account for you to use as you need. Read more: https://www.biz2credit.com/business-line-of-credit/business-credit-card-vs-line-of-credit-what-difference