Commercial vs Corporate Credit Cards: What’s the difference and which is better?

As the country’s businesses grow more decentralised and digital in nature, credit cards designed for professional use are gaining popularity. Among these, corporate and commercial credit cards serve unique purposes, both are developed to streamline business spending but are suitable to serve different stages and scales of business growth.

What are commercial credit cards?

Commercial credit cards are developed for small businesses, startups along with self employed professionals. These credit cards can help with managing everyday business expenses such as employee salaries, vendor payments, travel or digital subscriptions.

What are corporate credit cards?

Corporate credit cards are evolved with a vision to serve large multinational corporations and enterprises. These credit cards are issued to multiple employees and are developed for dealing with high volume, enterprise grade economic transactions. All such transactions mostly come with spending checks and advanced reporting.

Note: The features listed above are illustrative in nature and may vary by issuer. Always check specific terms and conditions before applying for any credit card.

Which one should you choose?

You should choose a credit card based on your business size and liability needs. Commercial credit cards are a prudent choice for startups, freelancers, and small businesses. They are issued in the owner’s name, often requiring a personal guarantee, and the liability lies with the individual.

Corporate credit cards, on the other hand, are developed with a vision to serve large enterprises. The company bears all liability, making them suitable for managing multiple teams and high-value transactions with tighter control.

Select based on scale and spending needs

Hence, if you are a solo entrepreneur or run a small team then a commercial credit card provides flexibility. Whereas for larger firms, corporate credit cards provide oversight and streamline expense management. Do carefully assess your business goals and consult a financial advisor before going with any particular credit card.

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