Data shows that 78% of Indian credit card users pay their full bill while 92% pay more than the minimum amount; a vital indicator that users have learnt the discipline to use credit facilities responsibly. Understandably, business organisations have started issuing credit cards to their employees as well to cater to their numerous business and corporate expenses. Consequently, financial institutions have also introduced credit tools like corporate and business credit cards.
What are corporate/business credit cards?
Understanding what a corporate credit card is, it is important to note that these are credit tools which are issued by companies and businesses to their employees. Vitally, these cards are different from conventional credit cards since they are specifically designed to be issued by corporate or business firms to their employees. Sharing features similar to those of regular credit cards, it is important to note the basic features of corporate/business credit cards.
Control of expenses:
Employers can easily track and control the business-related expenses of their employees by keeping a tab on their credit card accounts. Furthermore, they can also help the employee better avail the necessary funds to complete tasks for the organisation with ease. Employers can easily check the credit card balance of their employees and also track if there has been any unauthorised spending.
Streamlining of accounts:
For employees, a major advantage of using these cards is that their personal and business-related expenses are kept separate.
Avoiding hassle of reimbursement:
The reimbursement of corporate expenses of employees can be tedious work which is conveniently replaced by the use of corporate/business credit cards.
Rewards and discounts:
The Bajaj Finserv RBL Bank SuperCard and its likes offer many discounts and offers to compel users into making specific transactions on them. Reward points accumulated can be used to avail gifts or discounts on purchases, thereby reducing the total expenditure of the company.
How do corporate/business cards function?
After learning what is a corporate credit card, it is important to note different aspects of its functioning, here is a detailed guide –
Difference between corporate and business card
While both corporate and business credit cards are offered by different financial institutions to companies, there are subtle certain specific differences between the two. Both offer several convenient options to pay credit card bills. But corporate cards come with multiple variants along different types of debt liability options and are offered only to high-value businesses. Contrastingly, in case of the latter, the usage options are limited and offered to an individual for business expenses.
Debt liability options
Trying to learn what a corporate credit card is; employers should note that these cards have variants based on debt liability options. While clearing the bill of some cards is liability of companies, there are some cards which have joint liability.
Business credit building
A major functioning of this financial tool is that entrepreneurs can use a credit card to improve the credit score of their business, i.e. the business credit score. This can especially help if they intend to avail external financing from financial institutions to expand or upgrade the existing business.
Once an entrepreneur has a clear idea of what a corporate credit card is, they should also understand that its application procedure is quite easy. Reputed NBFC Bajaj Finserv provides pre-approved offers which make availing these cards easy and simple. Such offers are available on many financial products including business loans, working capital loans, personal loans, home loans, etc. You can check out your pre-approved offer by providing only your name and phone number.
For entrepreneurs who have issued corporate/business cards to their employees, it is advisable to regularly check credit card balance. This can ensure the prevention of unauthorised use of these cards. It is also vital every employee who is issued a corporate/business credit card is also instructed on the steps to take immediately in case the credit card is lost or stolen. This includes informing the authorities as well as freezing the card.
