Also known as corporate credit cards, the business credit card is a credit account issued to a company. Individual cards are issued to authorized employees and officers of the company. In turn, these individuals are free to use the cards for purchases approved by the corporation. Depending on the type of credit account extended to the company, the business credit card may have an established credit limit or have no credit limit imposed.

Businesses often make use of a business credit card in order to expedite transacting important business functions. For example, a salesperson who must travel to meet with a prospective client does not have to wait for the approval of a travel voucher or to get a cash advance from the accounting department. All expenses related to making the trip can be charged to the corporate card, then broken down and categorized once the trip is completed.

Generally, companies who make use of these cards develop specific guidelines that govern when and how the charge account can be used. It is not unusual for one of the guidelines to place a cap on the amount of charges that can be placed on the account for entertaining clients, travel, or purchases of goods for use in the office. Having guidelines in place help the company to more efficiently track how the cards tied to the central credit account are utilized and to take appropriate action if employees take advantage of the credit privileges.

Just about any business can apply for a business credit card. Small businesses as well as large corporations often use the cards to make essential purchases and then pay for those purchases as generated revenue is received from their clients. Home-based businesses can also apply for a business credit card and use the account in a similar manner. Medium-sized businesses as well as large corporations often set up a business credit card account for travel and entertainment, as well as to pay for training conferences and events for key employees.

One of the benefits associated with many business credit card programs is some type of rewards for the business using the account. The rewards may come in the form of points that are issued each time charges are paid in full, or the rewards may be a cash-back bonus that is applied to the balance of the card each time a charge is made. In any event, the presence of a rewards program allows the company to stretch resources while using the card to arrange company debt to best advantage.

As with any type of credit account, companies wishing to obtain a business credit card must meet specific qualifications in order to obtain a favorable credit limit and lower interest rates. Issuers of the cards periodically review the status of the business and adjust the privileges and terms associated with the credit account accordingly.