Released: September 11, 2008

Rise of the business credit card

Source: Jane Birmbaum, New York Times (Free Registration)

The credit card offers are in the mail.

Just as the slowing economy has made access to cash a higher priority for a lot of small businesses, banks have become more reluctant to extend traditional lines of credit to those businesses, experts say. But banks have been offering “small business” credit cards.

Credit cards and lines of credit both offer money when it is needed, but there is a fundamental difference between the two: lines of credit have low, fixed interest rates or slow-moving, variable ones, while interest rates on credit cards can jump unpredictably.

Read Full Article: Rise of the business credit card