Business lines of credit and business credit card in India are among the few dedicated financial tools for organizational usage. Businesses can avail themselves of ventures of almost all sizes and scales, assisting companies in managing monetary requirements without any hassle, while providing them with an opportunity to enhance their credit profile.
Nevertheless, while both are flexible financial tools, they also come with minute variations in their features and benefits for users. Knowing both of their feasibility in detail can only help make the right choice between the two credit options. Take a look at how both of them function for better understanding.
The business line of credit
A business line of credit (LOC) refers to a flexible financing facility offered by lending institutions, consisting of a fixed amount. Individuals can access these funds and repay them immediately or within the stipulated time.
Moreover, business LOCs are an excellent tool for making payments to suppliers who do not accept credit cards or charge fees for paying through credit cards. Besides, you can also utilize these credit options to pay existing bills through cash or cheques.
Features of a business line of credit
- Individuals availing a line of credit only need to pay the interest on the utilized amount and not for the entire sum. As a result, this feature assists you to save a considerable amount by not paying the charges on the unused loan amount.
- The loan amount credited under a business line of credit is significantly higher than several other types of credit.
- Financial institutions offering these credit options have set their repayment periods, which vary from provider to provider. It is the reason why LOC holders find it flexible to pay off their debts conveniently.
Business credit cards in India
Business credit cards work almost similar to personal credit cards but are intended for business use only. To avail of the same conveniently, you must know the process of applying for a credit card online for business use.
Besides, business owners can send the application with or without providing their employee identification number. This makes it more feasible for entrepreneurs to avail of a business credit card.
Features of business credit cards
- Maximum numbers of business credit cards in India offer a revolving credit limit, allowing one to withdraw cash and make payments. It is one of the best tools to access funds in emergencies and enhances the company’s purchasing power.
- Every business needs to keep their personal and business expenses separate. The reason is that it helps in accounting and protects one’s personal belongings or assets.
- Note that business credit cards offer benefits for every traveller as well, thus enabling card users to save on ticket and hotel bookings if they need to travel frequently for professional requirements. For example, individuals are protected by certain policies like insurance plans coverage for trip cancellation or delay, provided they book tickets using their business credit cards.
- One should always select a business credit card that will help save on the organization or business’s expenses via cashback, reward points, etc. Therefore, apart from financial assistance, availing of a credit card comes with savings too.
Comparing the features so available, it can be safely concluded that while both credit options are feasible in their own rights when looking for short terms financing with immediate repayment, business credit cards can be the go-to option. Further, they also bring an opportunity to save on future purchases with their attractive reward programs.
Further, as business credit cards and lines of credit are limited for business purposes, individuals can avail of credit cards for personal use as well. A preferable product in this respect could be the Bajaj Finserv RBL Bank SuperCard.
It comes with notable features like interest-free cash withdrawal from ATMs for 50 days, low finance charges, etc. alongside robust security features, making the RBL bank credit card payment and transactions safe.
Besides, the issuer of this card also provides pre-approved offers that simplify the credit card application process, along with that for other credit options like business loans and personal loans. An existing customer can check his/her pre-approved offer by entering only the essential contact details.
Both the business lines of credit and business credit cards in India in India are immensely beneficial for different situations. Hence, depending upon your funding need, you may choose to avail of one to run your business smoothly.