3 types of business credit & what to know about each

Running a business takes flexibility, and having access to credit can help you stay ready for whatever comes next. Whether you’re covering day-to-day business expenses or planning for growth, the right credit tools can help you manage cash flow, stay in control and keep things moving.

From loans to flexible lines of credit to business credit cards with built-in rewards, understanding your options is a smart step toward building a stronger financial foundation.

What you’ll learn:

• There are three main types of business credit: business loans, business lines of credit and business credit cards.
• Each type of credit is designed to support different business needs—whether you’re funding growth, managing cash flow or covering day-to-day expenses.
• Understanding how these credit options work can help you choose the one that best fits your goals, your spending habits and the stage of your business.

Business loans can be a smart way to fund long-term investments or cover big one-time expenses. So whether you’re planning for growth, expanding your space or upgrading equipment, it helps to understand the types of business loans available to support your next move.

• Term loans: These loans offer fixed repayment schedules and are often used for large-ticket items, such as equipment purchases, renovations and inventory.
• SBA loans: SBA loans are backed by the U.S. Small Business Administration and designed to support small-business owners by providing competitive interest rates and longer repayment terms.
• Equipment financing: This type of funding helps cover the cost of business-critical tools, machinery or vehicles, with the equipment itself often used as collateral.
• Commercial real estate loans: These loans are generally used to buy, renovate or refinance business properties, making them ideal for supporting expansion or relocation plans.

Choosing the right type of loan can help you take the next big step on your timeline—with the confidence that your financing fits your business goals.

A business line of credit provides flexibility and access to funds when you need them—without having to reapply each time. It’s a popular option for managing cash flow, covering short-term expenses or bridging gaps between payables and receivables.

There are two main types of business lines of credit to consider, each offering different advantages:

• Secured: Secured lines of credit are backed by collateral like inventory, equipment or accounts receivable. These lines of credit may offer higher credit limits or lower interest rates, depending on the value of your collateral.
• Unsecured: Unsecured lines of credit don’t require collateral, potentially making them easier for some businesses to access. Typically, they rely on your credit profile and financials to determine eligibility and terms.

Whether secured or unsecured, a business line of credit can give you flexibility and control. That’s because you’ll only pay interest on the amount you use, and you can draw funds when you need them.

Business credit cards can do more than cover day-to-day expenses—they can help you earn rewards, manage employee spending and keep your business finances organized. Whether you’re focused on travel, cash back or access to expense management features, there’s a card designed to support how you work.

Cash back business cards give you a simple way to earn money back on the purchases you’re already making—helping you reinvest in your business, offset expenses or build a cushion for future spending. These cards reward you for everything from office supplies to vendor payments, with higher returns on certain categories (like travel).

If you’re looking to earn straightforward cash back on every purchase for your business, cards like Spark Cash Plus and Spark Cash offer 2% cash back on everything except hotels and rental cars booked through Capital One Travel. You’ll get 5% back on those reservations.

• Spark Cash: The Spark Cash card for business comes with a traditional credit line and a $0 intro annual fee ($95 after the first year). This card is a good fit for smaller teams focused on efficient, cash-driven operations.
• Spark Cash Plus: The Spark Cash Plus card is built for businesses with higher spending needs. It offers big purchasing power¹, no preset spending limit (NPSL) and an annual fee that’s refunded when you reach a spend threshold each year.

Travel business cards are ideal for companies whose employees spend time on the road or in the air. These cards turn everyday purchases into miles you can redeem for flights, hotels and other travel-related costs. Travel business cards can offer added benefits when you book through travel portals, and they help reduce out-of-pocket travel expenses over time.

For businesspeople who travel often, travel rewards cards like Venture X Business and Spark Miles let you earn valuable travel rewards on every dollar.

• Venture X Business: The Venture X Business card is ideal for businesses that want premium travel benefits. Cardholders earn 5X miles on flights booked through Capital One Travel, and they earn 10X miles on hotels and rental cars secured through Capital One Travel. Cardholders earn 2X miles on every other purchase. This card features no preset spending limit and is built for businesses that move fast, spend at scale, and need a card that can keep up with their purchases.
• Spark Miles: The Spark Miles card is designed for businesses looking to earn travel rewards, with no annual fee in the first year, then $95 after. Cardholders earn 5X miles on hotels and rental cars booked through our travel booking site, and they earn 2X miles on every other purchase. This card is a great fit for businesses seeking a flexible rewards card with straightforward earning potential.

Business credit cards offer more than just rewards—they come with a variety of features that help you manage your spending and simplify your operations. For example, Capital One business cards include features for tracking employee expenses, setting spending limits and streamlining accounts payable—all designed to give you greater control over and visibility of your business finances.

Other features that business cards often provide include:

• Flexible spending limits: Some business cards have no preset spending limit that adjusts based on the business’s spending patterns and needs.
• Expense management tools: Many business credit cards include features to track employee spending, set spending controls and categorize expenses. Collectively, these tools make bookkeeping and budgeting easier.

Together, these features help business credit cards become a valuable tool for managing finances and supporting business growth.

Business credit isn’t one-size-fits-all. Rather, it comes in different forms to meet different needs. A loan can be a wise choice when you’re making a significant investment, like buying equipment or property. Lines of credit give you more flexibility and can be especially useful for covering short-term expenses or keeping your cash flow steady. Business credit cards are built for everyday purchases—and they can come with rewards, built-in tools and spending controls. 

The right type of business credit to choose will depend on how your business operates and what you plan to do next. With the appropriate solution in place, credit can be an effective tool that supports both stability and growth.

If you think a business credit card is the right choice for your business, compare Capital One business credit cards. You can even see what you’re pre-approved for—before applying—with no harm to your personal credit.