Business Credit Card vs Business Loan — Which is Right for your Business?

Business Credit Card vs Business Loan — Which is Right for your Business?
Weigh up the pros and cons to decide whether a loan or credit card is right for your business
by Square Feb 19, 2019 — 3 min read
Business Credit Card vs Business Loan — Which is Right for your Business?

Business loans and credit cards are just two popular ways that Aussie businesses manage their credit and cash flow needs. But which one is right for you?

To help you make a decision, we’ve broken down the benefits and drawbacks of using a credit card versus using a loan to fund your business expenses.

Business credit cards

Business credit cards are best suited to small or medium businesses that want a revolving line of credit and extra perks. From simple account management to fees, here are the pros and cons to consider when comparing these cards:



Business loans

Business loans may be a better option if you need to fund upfront investments such as equipment or property, or if you’re an established business with a stable revenue and cash flow. You’ll access greater borrowing power, but you’ll need to meet strict eligibility requirements:



Depending on your business needs, you may find that you want to use both a business credit card and a loan. You may use a card to manage your employees’ everyday spending, and apply for a loan to cover large expenses such as equipment or vehicle costs. As with any credit card or loan, it’s important that you compare your options, consider the eligibility requirements and create a repayment plan to ensure that you can make your line of credit work for you.

By Sally McMullen, Credit Cards Editor at

Remember, this article does not constitute financial advice – if you have questions about your business savings account, please consult a professional.

The Bottom Line is brought to you by a global team of collaborators who believe that anyone should be able to participate and thrive in the economy.


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