If you’re a business owner in Cookeville, TN, you may be mulling over your credit options from your local bank. In this case, understanding the difference between business and personal lines of credit can be extremely helpful. Putnam 1st Mercantile Bank offers the following information so you can secure the right funding for continued business growth and success.

3 Differences Between Business & Personal Credit Cards According to a Local Bank

1. Business Cards Have Higher Limits

Because business spending tends to be much higher, credit cards tailored to business owners usually offer higher credit limits. Some cards even offer unlimited spending, although you will be obligated to pay an annual fee in many cases. A higher credit limit can come in handy should you need to make an unexpected large purchase, and a personal card may not be able to accommodate you should this need arise.

2. Personal Cards Are Harder to Customize

For many businesses, profits can fluctuate from time to time. Accordingly, business cards offer methods of personalizing payment options to ensure business owners can keep up with charges owed. For instance, you may be entitled to an extended payment plan for a larger purchase (such as equipment). You may also be allowed to defer payment in the event your business is experiencing a slower sales month.

3. Business Cards Offer Benefits

While personal credit cards also offer benefits, business cards provide benefits suited to business owners. This includes free cards for employees, rewards programs, and purchase protections with higher limits. These bonuses can come in handy if you typically use credit to pay for your business’s needs.

As a trusted Cookeville financial institution, Putnam 1st Mercantile Bank offers lines of credit to local businesses with reasonable rates and terms. This bank also offers a wide range of other helpful services, including online banking and mortgage loans. Call (931) 528-6372 today for more information or visit the website to see the complete listing of services.