Unlike business loans, business credit cards are very handy for short term financial needs for corporate transactions. Irrespective of size of the organisation, a business credit card can help the owners to use the money on frequent transactions. However, the usage should be meant for short-term , because, it also comes with interest if you are not able to repay the outstanding amount before payment due date. Popularity of business credit cards are getting demanding day by day because of its usefulness without a much requirement for documentation. A business loan requires certain documents, processing fees and waiting time, whereas on the other hand a business credit card doesn’t have long processes to follow. Immediate cash is available for urgent transactions and therefore it is a better option.
Small business owners in India prefer business credit cards as these cards do not require collateral. Though these card users get monthly billings, most banks also have the facility for the owner to check and track their expenses online & sort their expenditures, run an inspection, and pay their taxes.