Business Credit Cards vs. Lines of Credit
Ah, the sweet smell of plastic and promises.
If you’re running a small business, chances are you’ve either got a business credit card, a line of credit, or a deep existential dread about financing. Maybe all three.
We get it. Financing your growth without screwing yourself financially is a tricky dance — especially when every guru with a ring light is yelling “LEVERAGE!” like it’s a damn battle cry.
So let’s break it down: Business Credit Card vs. Business Line of Credit. Which one actually helps you grow your business…and which one just gives you a false sense of financial confidence?
We’re diving in. No banker-speak. Just the truth, wrapped in a little snark.
What Is a Business Credit Card (and Why Everyone’s Got One)?
A business credit card is like your personal credit card’s more “professional” cousin. It lets you:
Make purchases and pay them off monthly (or not — hello, 25% APR 🙃)
Earn points, cashback, airline miles, or whatever shiny thing keeps you distracted
Build business credit, ahem… IF you're using it responsibly
Sounds great, right?
Sure. But here’s the thing...
Business credit cards are designed for convenience, NOTfor scaling.
They’re solid for everyday expenses, subscriptions, travel, and maybe ordering 8,000 units of custom pens you don’t actually need (we see you, Jeff).
But when it comes to big moves (hiring a team, buying equipment, ramping up inventory, or launching a new location) swiping your business credit card isn’t just risky... it’s reckless.
Why?
Number one: High Interest Rates
We’re talking 15–30% APR in many cases. That’s not “growth capital.” That’s “hope-you-like-paying-double” territory.
And number two: Doesn’t Always Scale with You
Most cards cap out somewhere between $5k and $50k unless you’ve been a golden child with a pristine FICO and a unicorn business model.
What Is a Business Line of Credit?
Now we’re talkin’ real grown-up money.
A business line of credit (LOC) is a flexible pool of funds you can draw from as needed — kind of like a credit card’s older, wiser, less flashy sibling. But with fewer strings and better terms.
Key perks?
Lower interest rates (usually between 7–15%, depending on your lender + credit profile)
Revolving access to funds (use it, repay it, reuse it)
You only pay interest on what you actually use
Can be secured or unsecured, depending on your financials
Think of a line of credit like a financial safety net that doesn’t charge you for existing. And when managed well, it can be your working capital wingman.
Side-by-Side Breakdown (Because You Know You Love a Chart)
So... Which One Actually Helps You Scale?
Let’s be clear: both have their place. But when you’re looking to actually grow — not just stay afloat or buy printer ink in bulk — the business line of credit is the heavy lifter.
Why?
Because scaling a business means unpredictable expenses, big upfront investments, and the need to move fast without maxing out your personal FICO or begging your cousin Tony for a loan.
Credit cards can supplement that… but they shouldn’t be the star of your financing show.
Here’s What Smart Businesses Do:
Use business credit cards for recurring expenses and building credit
Use a line of credit to seize opportunities — bulk deals, hiring, expansion, etc.
Don't wait until the sky is falling — secure funding before you need it
Your growth should be fueled by strategy — not panic.
Need Help Figuring This Sh*t Out?
If you’re still relying on your credit card to run your business, or if you’re not sure how to qualify for a line of credit (or even build the business credit to get there), we’ve got you.
Schedule a quick call with the Credit Banc team; we’ll help you make sense of your options, ditch the debt spiral, and find smarter ways to fund your growth.
👉 Click here to book a call with an advisor who actually speaks human.
