Small Business Credit Terms
Understanding the language of business credit and charge card programs will help you to select a program that may improve your businesses purchasing power, spending flexibility, expense control and cost savings.
Annual Percentage Rate (APR) - The cost of credit that consumers pay, expressed as a simple annual percentage.
Charge Card - Used for making purchases each month and paying off in full each month.
Credit Card - Used for making purchases on an ongoing basis where monthly payments are made over time and an interest charge applies to outstanding balances.
Credit History Requirement - The preferred status of your credit history relative to qualifying for a specific credit tool. This is commonly described in terms of good to excellent.
Introductory Annual Percentage Rate (APR) - The cost of credit for a specified introductory period that consumers pay, expressed as a simple annual percentage.
Introductory Annual Percentage Rate (APR) Period - The cost of credit for an annual introductory period that consumers pay, expressed as a simple annual percentage.
Annual Fee - A lender's annual charge for making credit available.
Grace Period - This is NOT an extension of your payment due date. If you are not carrying a balance, it is the period you have to pay new balances before interest charges apply.
Late Fee - A penalty fee applied when making payments after the required due date.
Over Limit Fee - A fee charged when you charge your credit card over the specified limit.
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