Technical expertise taking care Bicycle Shop. Concept: Business credit cards vs Camino Financial loans
Derek Tallent
By: dtallent
Read in 10 minutes

Business Credit Cards vs. Camino Financial Business Loans

When you are running a business, there are going to be times when you really need some capital very quickly. Maybe your printer or copier is on the fritz and you need a new one, or maybe you want to take advantage of a limited-time discount to buy in bulk from one of your suppliers. Most business loans take a while to apply for and fund. Are they the best option for these situations? Or should you opt to get a business credit card? Here we will compare and contrast business credit cards with the small business loans from Camino Financial, an alternative lender who provides quick access to capital, so you can take an informed decision if you find yourself in need of fast funding.

How do Business Credit Cards Work?

Business credit cards work a lot like regular credit cards. You get a certain credit limit and can use the card to make purchases up to that limit. You will make monthly payments based on how much you spend. Some business credit cards even offer rewards or promotions like personal credit cards which can be helpful. Before you find a business credit card, you need to be aware of the advantages and disadvantages of using one:


+ Easy Qualification- It is much easier to qualify for business credit cards than traditional loans since there is less risk for the lender in giving out a credit card.

+ Easy Access to Capital- Having a business credit card means having access to capital whenever you need it, which can come in handy in many situations. If something breaks and you need to replace it as soon as possible, using a business credit card will be usually much faster than trying to apply for a business loan.

+ Easy Way to Build Credit- Building business credit is important if you want to apply for future loans or apply for new leases when you move or expand your building, and paying your credit card bills on time will get your business credit.


Requires Good Personal Credit- In order to get a business credit card, you need a clean personal credit history.

Costs Are Higher in the Long Run- One of the biggest downsides to business credit cards is that they usually have very high-interest rates and late fees, which can add up quickly.

No Purchase Protection- Business credit cards do not have purchase protection similar to personal credit cards. This means that it will be much more difficult to return purchased items, correcting billing errors, or challenge fraudulent charges.

Less Security- Identity theft is a serious concern for business credit cards. You need to keep a close eye on your card and make sure you do not leave it anywhere.

How to use a Business Credit Card Properly

Business credit cards can be great, but you need to make sure you use them properly and don’t fall into some of the common pitfalls of credit card use:

DO pay your credit card bills on time, every time. This is crucial to building your business credit score.

DO use your credit card for emergencies. This is the biggest benefit of business credit cards.

DON’T let your credit card balance exceed what you can afford to pay. If you only make $2,000 a month, don’t spend $5,000 on your credit card. Otherwise, your credit score could take a hit. A rule of thumb is never letting your balance exceed the 30% credit limit on your card. When your balance is more than 30% of your credit limit, it will affect your credit score.

DON’T use business credit cards for highly expensive purchases. Business credit cards tend to have high-interest rates, so using them for bigger purchases like purchasing real estate can cause these purchases can be a little too costly.

An Alternative to Business Credit Cards: Camino Financial Loans

If you are in need of cash quickly, business credit cards are not your only option. Camino Financial business loans are quickly funded and can also get you out of a jam. Here are some of the features of our offered business loans:

  • Max Loan Amount- Camino Financial gives out loans maxing at $400,000 per loan.
  • Process- We pride ourselves in funding loans as soon as possible. Once you are approved for a loan it will be funded within the next 4-10 days.
  • Interest Rates- We offer annual interest rates ranging from 12% to 24.75% on a case by case basis.
  • Loan Payback Period-24 to 60 months.
  • Requirements- In order to qualify for a Camino Financial small business loan, your business should have been established for at least 9 months, bring in at least $30,000 annually, and you must own at least 50% of the business and have a Social Security Number or Tax Identification Number (ITIN).

Here are a few features of our smaller short-term microloans, a great option if the amount you need is smaller or you need even quicker access to capital

  • Max Loan Amount- $75,000.
  • Process- As fast as 2 days.
  • Interest Rates- Annual interest rates range from 25.50%-40.00%
  • Loan Payback Period- 24 to 36 months.
  • Requirements- Same as in small business loans.

Additionally, Camino Financial loans have a few added benefits compared to other financing options:

  • All terms of our loans are fixed, which means you will pay the same rate across the entire lifetime of the loan.
  • We match you with the best financial solution that is right for your unique needs and we ensure you are comfortable with the monthly payments.
  • After 9 months of timely payments, you can qualify for higher loan amounts with lower interest rates.
  • Applicants do not require a Social Security Number to qualify, an ITIN will suffice.
  • You won’t have to worry about risking your personal property or assets, because we don’t require you to provide collateral to close on the loan.
  • You don’t need a credit history to qualify for a business loan with us, but remember that solid credit history will allow you to qualify for lower interest rates.
  • No prepayment penalties if you decide to pay off your loan earlier than expected.
  • The loan process is completely online and can even be done on your mobile device.
  • After submitting your application, you’ll receive an instant quote and the funds will be deposited directly in your bank account within just a couple of days.

Business Credit Cards vs. Camino Financial Loans

Below is a diagram comparing some of the benefits of business credit cards vs. Camino Financial loans:

It’s Time to Grow your Business with Camino Financial

Applying for a business loan with Camino Financial is an easy and streamlines process that can be done completely online. In a matter of just a few minutes, you can see what loan and rate you qualify for, and get your loan funded in no time. You’ll be assigned a bilingual loan expert that will ensure to match you with the best funding option and guide you through the whole loan process. And once you become a member of Camino Financial, we will provide you with the resources and tools you need to improve your financial performance and grow your business.

With Camino, you are not alone in your path to success: we pride ourselves on establishing long-term relationships with our members. What are you waiting for to start growing your business?

Check if you
qualify for a loan