When you’re in business, there are a number of expenses you’ll be expected to cover on behalf of the company. Those could be for services, travel, or anything else that’s necessary to keep the business running smoothly.
Corporate cards are one of the most convenient ways to handle those expenses. You won’t have to constantly worry about keeping track of receipts and whether or not you’ve spent too much on a personal card – corporate cards make it super easy on you.
Keep reading to learn more about them and why they’re so beneficial for businesses.
A corporate card is a credit card with special features tailored for businesses or executives. As such, it will not be useful unless it has several key attributes that make it ideal for managing business expenses and keeping track of them.
Here are some things you should look out for when choosing an employee or corporate card for your business:
What is a Corporate Card?
A corporate card is a credit card issued to a business or a corporate entity and not to an individual.
The card is thus linked to the business, which means the card can be used to buy business-related expenses, such as travel and office supplies, as well as anything else you may want to buy with credit.
This is different from a business credit card, which is a credit card linked to a specific account and can only be used to make purchases on that account.
A business credit card is usually provided to a single person within the business, such as the CEO or CFO. Unlike a business credit card, a corporate card does not have a specific account linked to it but instead draws from the main credit line of the company.
As such, a corporate card is useful for expenses that are not linked to a single account and for which the company needs a single card to track all transactions.
Why Use a Corporate Card?
A corporate card is a sensible choice for managing business expenses.
The key advantage is that you can track these expenses easily and accurately. Typically, these cards are tied to an online platform that allows you to keep track of the expenses incurred and make periodic payments so that you pay off these expenses over time.
This is an excellent way to keep tabs on your business expenses and make sure that you do not overspend.
Corporate cards offer a few key benefits
They help your business to build a positive image. This has to do with the fact that these cards often come with generous terms and conditions, including low-interest rates and cash-back offers.
This makes the card very attractive to prospective customers and clients who may see your card and be inclined to do business with you, thanks to the benefits of the card.
Which Card Should You Get?
The specific card you choose will depend on a number of factors, including the size of your company, the type of industry you are in, and the amount of credit you are eligible for.
The first step is to speak to an expert to determine your eligibility. Once you know the amount of credit you are eligible for, you can compare your options and choose the card that best meets your needs.
Here are a few things you should keep in mind when choosing your card:
The annual fee: It’s important to choose a card that does not charge an excessive annual fee. This is a recurring payment, and if your company is new, you may want to avoid cards that charge an excessive annual fee because it can make your balance harder to pay off.
The average APR: Be sure to investigate the average APR for the card that you are interested in. This is the interest rate you will pay if you are unable to make your balance on the card zero.
If you are unable to make your balance zero, you will be charged interest, which will make it harder to pay off your expenses.
The rewards program: Consider the rewards program for the card that you select. This can make your expenses easier to pay off, especially if the card comes with an attractive rewards program.
Pros of using a Corporate Card
There are many benefits to using a corporate credit card.
The most obvious advantage is that it will help you keep track of all expenses related to your business. You can thus be certain that your expenses are being recorded and that you are being careful with your spending.
Another advantage to using a corporate card is that it can help you earn frequent flyer miles and other rewards. Be sure to choose a card that offers rewards and benefits that are attractive to you and your business.
A third advantage of using a corporate card is that it can make you look professional and help you build a positive business image. Customers and clients may be attracted to a card that offers them rewards and has a low or no annual fee.
Cons of using a Corporate Card
There are a few disadvantages to using a corporate card. The most obvious one is that it will be harder to pay off your expenses.
This is because the company will pay off the expenses over a period of time, so you will be responsible for making regular payments until they are due. Another disadvantage is that it can be more difficult to get approved for a corporate card.
This is because companies often want to ensure that you are responsible enough to make timely payments and avoid incurring debt. Finally, you will have to pay off your expenses all at once.
This may be difficult for new companies that may not have the resources to pay off their expenses in one go.
Conclusion
A corporate card is a sensible choice for managing business expenses.
The key advantage is that you can track these expenses easily and accurately. Typically, these cards are tied to an online platform that allows you to keep track of the expenses incurred and make periodic payments so that you pay off these expenses over time.
This is an excellent way to keep tabs on your business expenses and make sure that you do not overspend. Corporate cards offer another key benefit: they help your business to build a positive image by providing employees with attractive rewards.