The difference between corporate and business credit cards

Quick insights

• Business credit cards are intended for use by small businesses and sole proprietors while corporate credit cards are for larger, more established businesses and corporations.
• Due to the eligibility requirements and revenue minimums, most small businesses will likely not be able to obtain corporate credit cards.
• Both types of credit cards could allow businesses to earn rewards and points and track business expenses.

Business credit cards and corporate credit cards are similar, but not the same. They are intended for use by different types of businesses and typically, new and small businesses will not be able to meet the eligibility requirements for corporate credit cards. In this article, we’ll explain the differences and benefits of corporate and business credit cards.

What is a business credit card?

Business credit cards are primarily used by small businesses, sole proprietors, partnerships and some LLCs. They function like a personal credit card but come with features and benefits that appeal to business owners. Because businesses tend to spend more than individual credit card holders, these cards typically offer higher credit limits and more rewards than those offered to individuals.

Who is a corporate credit card for?

Corporate credit cards are intended for use by larger, more established businesses and corporations. Because of this, they come with more stringent eligibility requirements than a business credit card. Corporate credit cards are available primarily to S-corps, C-corps and LLCs with established credit histories. Corporations typically need to have annual revenue of at least $4 million to qualify for corporate credit cards. In addition, they typically require at least 15 cardholders on the account.

What is the difference between a corporate and business credit card?

Both business credit cards and corporate credit cards are used for businesses expenses, but they differ when you consider the eligibility requirements, features and liability associated with each type.

They vary in the following ways:

• Business type: S-corps, C-corps and established LLCs are more likely to be approved for a corporate card while sole-proprietors, LLCs and small businesses can be prime candidates for business credit cards
• Minimums: To obtain a corporate credit card, the company will likely need at least $4 million in revenue, must meet or exceed a minimum number of card holders, and meet a spending quota.
• Features: Business cards may not have a way to restrict some spending categories, while corporate cards can usually have spending limits and categories set for individual card holders.
• Liability: Business owners are held responsible for debt on business credit cards, while the company is usually held liable for corporate card debt.
• Payment: Corporate credit cards can require the business to pay the balance in full each month, while business cards may have more flexible payment terms depending on the card.

Benefits of business credit cards and corporate credit cards

There could be benefits that pertain to both types of cards, like expense tracking, points and rewards. However, because these cards are intended for different types of businesses, there are some distinct benefits for each that are worth noting.

Business credit card benefits

There are many benefits to owning a business credit card. Business credit cards allow new business owners to establish credit while also giving them easier access to capital. Like consumer credit cards, some business credit cards allow businesses to earn rewards and points for everyday purchases. By having a business credit card, business owners can more easily separate their business from personal expenses and track, categorize and reconcile businesses expenses for tax purposes.

Corporate credit card benefits

Corporate credit cards come with more robust administrative benefits considering that many corporate credit cards require a minimum amount of employee cards. With each individual card, management can set spending limits and limit spending on certain categories. Corporate cards also allow businesses to streamline reimbursement procedures for employees who frequently travel and incur work related expenses.  

In summary

While both business and company credit cards can help businesses earn points, track expenses and build company credit, their eligibility requirements differ. Corporate credit cards are typically issued to larger companies that earn a certain amount of revenue and can meet spending quotas, while business credit cards are intended for small businesses, sole-proprietors, and LLCs.