Crowdsourcing, venture capital and angel capital get plenty of media attention.

They’re the sexy approach to alternative funding for small business, especially startups. However, credit cards remain a standard financing tool for many of the 28 million small businesses in the U.S.

Though it has garnered a bad reputation, it’s undeserved.

According to the Federal Reserve, the default rate is relatively low. In addition, credit-card funding has a social benefit.

Research for the American Bankers Association found that for each $5,613 increase in the monthly use of credit cards by small firms, one job gets created.

Small businesses turn to the personal and business credit card because it’s convenient, fast and can even provide rewards, ranging from cash-back to frequent-flyer miles. There is debate if relying on personal cards instead of applying for business ones is a mistake. For many entrepreneurs, that choice in itself is not relevant. What matters is what they have access to at the time and on what terms.

For example, if their financial condition has turned shaky they might not be able to obtain a business card. On the other hand, if their business isn’t distressed they could respond to a zero-interest for 18-months business card offer.

Should they travel frequently, then they could select the card, personal or business, with mileage and lodging perks.

As for interest rates for both kinds of cards, those depend primarily on shopping around and not breaking rules which boost the original rate. According to Bankrate.com, the average rate for a fixed rate business card is 13.02% and IndexCreditCards.com puts the average for non-rewards business at 14.99% and rewards at 15.31%. Consumer cards often mirror those rates.

There are, though, differences between consumer and business cards.

One, experts point out, is that the protections of the CreditCARD Act of 2009 don’t apply to business cards.

For example, on consumer cards, the issuers can’t significantly jack up the rates for a minor violation such as one late payment. However, some card companies now offer those same protections for the business customer. Since this is important, it’s worth the time shopping around for this benefit.

Another difference is that a number of issuers bundle the activity on both types of cards to determine both’s credit rating. If there have been infringements on the business card, that is often held against the consumer account also.

By law, issuers are not required to disclose this practice. Unfortunately, most business owners learn this too late. They apply for a home mortgage and discover the low FICO score for their personal card.

The third difference is that a growing number of business cards provide applications for tracking expenses. Not only is the feature useful in monthly accounting, it could save hours of work during quarterly tax time. For this same reason, even solo entrepreneurs are encouraged to open business checking accounts which provide that.

The fourth relates to perception. Using a business card with clients, customers and other kinds of financing could create or reinforce a more professional image. Co-mingling of funds can be a red flag of accounting sloppiness.

After small business owners decide to fund via credit cards, there are also four factors to consider, both for consumer and business cards.

Promotional Offers. Zero-interest is best and the longer the duration the better. Since most of this funding is for the short-term, the fine print on the subsequent interest rate might not of immediate importance. The goal, though, should be to pay all or most of the balance monthly. In essence, that’s the free use of money.

The minority of small businesses which allow balances to balloon are the ones giving credit-card financing the negative reputation.

Image. If power is a factor in doing business, then the choice should be the card the movers and shakers use.

Fees. Paying an annual fee has to be reflected in superior terms and conditions, including rewards.

Penalties. Heavy penalties, such as loss of the promotional interest rate, for a one-time event such as going over the limit can mean serious trouble.

In bad times and better times, such as the current economy, credit cards will likely remain attractive to many small businesses for short-term funds.

In a world of so much uncertainty, they can provide a unique sense of comfort.