Business Credit Cards in India: Understanding Their True Nature and Usage

• In India, business credit cards are typically issued to individuals running businesses, not as separate legal entities.
• Banks almost always require a personal guarantee, meaning the individual is liable for unpaid bills, not just the business.
• Common uses include travel, fuel, online ads, software, client meals, and office purchases, centralizing expense tracking.
• Functionally, they operate like personal cards with monthly statements, due dates, and high interest on revolving balances.
• Credit limits are based on both business cash flows and personal credit history, linking personal and business finances.

Why It Matters: Business credit cards in India are primarily individual liabilities, useful for expense tracking but not for funding.