Long gone are the days when employees had to submit a long list of receipts to make authorized purchases for the company. But with the advent of Corporate Credit Cards, it is now much easier for employees to make business purchases, and expenses without taking a single penny out of their pockets. Moreover, giving transparency to companies to track their expenses efficiently.
What is a Corporate Credit Card?
A corporate credit card is a type of credit card issued in the name of a company. As a result, the charges on the card are the legal responsibility of the business entity and not the business owner. Due to this reason, corporate credit cards are given to big corporations with a decent track history.
Corporate credit cards come with some amazing perks and benefits such as cash rebates, frequent flyer miles, etc. However, the biggest benefit of having a corporate credit card is to handle big business expenses for a large company easily and efficiently.
Types Of Corporate Credit Cards
Corporate credit cards are divided into two categories namely corporate liability and individual liability. These types are available across various brands including Visa, Mastercard, etc.
Corporate Liability Credit Cards
In this type of card, the employer is responsible for the payment of the purchases and expenses made using the corporate credit card. However, the employee is still responsible to report those charges.
Apart from the employer being liable to make bill payments, the issuer considers the history of the company rather than of the individual before issuing the card.
Individual Liability Credit Card
In this type of card, the cardholder employee is responsible for the credit card bill payment. However, they have to report those charges to their employers for reimbursement.
Apart from being liable to pay credit card bills, the issuer checks the credit history of the employee before issuing the card. However, their corporate credit card usage doesn’t affect their credit score.
Eligibility Criteria For Your Company To Qualify For Corporate Credit Card
The eligibility criteria of a company to qualify for a corporate credit card differs from bank to bank. However, Corporate Credit Cards for Corporate Accounts are issued to registered and established corporations. The issuers before issuing the card consider the company’s latest audited financial statements and tax-related information. So when the employer applies for the card, the financial health of a company is taken into consideration and not that of the owner.
Also, Traditionally, banks issue corporate credit cards to those companies which are at least 2 years old and have a turnover of a minimum of 10 crores. Moreover, the companies must have high credit scores as well.
How To Apply For A Corporate Credit Card?
You can apply for a corporate credit card online since most of the issuers and banks have online application channels in place. Here are the steps below.
First, find out which banks offer corporate credit cards. For instance, the banks like HDFC, Citibank, IndusInd Bank, Kotak Mahindra, Axis Bank, American Express, etc offer corporate credit cards. Check their website and learn about the benefits, credit limit, annual fee, joining fee, EMI payments, etc of each card.
Every bank has different criteria set for corporations. Check for which banks your corporation qualifies and their guidelines. Also, choose the service that suits your business needs.
Submit Online Application
By choosing the best pick for your company, submit the online application and wait for the bank’s response to help you with further steps.
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