When you start a business, finances can seem complicated to manage. One of the reasons is that it’s not your personal finances anymore, but the finances of your business. In this case, business cards come in handy for tracking your business expenses. But what are the benefits of having a corporate card? Let’s see.
Quick recap:
- Enterprise corporate cards vs small business cards;
- Cards for business expenses;
- Tips for choosing the right business cards
Corporate cards are issued for tracking business expenses, such as travel costs, subscriptions, utility payments, etc. The primary benefit of corporate cards is that they allow employees to cover business expenses without using personal accounts. Also, it saves time from filling out reimbursement forms or waiting for claims.
Financial institutions are keen on offering corporate card programs to small and medium enterprises to help them grow. These cards are connected to a credit line provided by the issuer, and the limit of the line varies depending on the program chosen by the businesses.
Small business cards and corporate cards are the two most well-known choices. Both of them enable the employees to leverage their business purchases. It’s up to the company to decide which one is most likely to support its growth in the long term.
The difference between corporate cards and small business cards
The main difference between corporate and small business cards lies in their accessibility. Corporate cards are issued for larger enterprises with specific requirements that are mainly about the company’s revenue. Corporate credit cards don’t require personal guarantees; however, small business cards do. The primary cardholder is responsible for the due dates, and when the company falls behind, the responsible person carries the consequences.
Why should a business get a business card?
When small businesses and startups begin to shrink, the owners shouldn’t worry about tracking the finances. Opening a business card is a strong way to streamline business expenses and get additional perks.
Small business cards offer a credit line for purchases that may need additional cash to be paid for. Businesses need to spend money in return for earning money. In this case, credit lines of the small business cards have a helping hand for demanding business purchases.
Small business cards help in streamlining employee expenses. Managing employee expenses from business cards is hassle-free, and the cardholder receives a bill each time an employee makes a purchase. It also makes the tracking process for the company easier.
Every purchase from the business card helps employers to receive rewards such as cashback, miles, or points. This system is designed by the issuing companies to provide loyalty for the customer businesses.
Business cards provide protection for foreign transactions similar to credit cards. This may include foreign transaction fees, trip or insurance cancellation, etc. Business cards mainly offer no additional fees for foreign transactions, travel and emergency assistance services, and purchase security.
Tracking all the transactions manually is hard and can give a way to mistakes. Most business cards offer quarterly or yearly reports and the ability to download purchase history to help in analyses of the finances of the company.
How to choose the right business card for your business
Day by day, the options get more varied, which makes the choices more difficult. Here are the main tips for choosing the most suitable one for your business:
1. Check your personal credit. Your personal credit history may affect your business loans, so check your personal credit history before applying for a business card, especially when you are becoming a business cardholder;
2. Compare the fees including balance transfers, and cash advances, and check if it requires additional fees for foreign purchases;
3. Look for rewards that align with your business expenses. Issuers mainly offer cash back, miles, and points for the provision of loyalty. Check how your purchases are going to bring back bonuses;
4. Check the perks on the business cards. See if it provides you with travel insurance, credits for purchases, or expense reporting.
GUAVAPAY’s corporate card
As GUAVAPAY, one of our main goals is to help in the growth of small and medium enterprises. GUAVAPAY corporate cards provide a flexible solution for businesses to manage their financial burden.
Here at GUAVAPAY, we offer physical or virtual cards that provide businesses with time-friendly subscription and expense management systems, a 3D system to enhance the security of payments, white-label branding, card tokenization, and loyalty programs for each business purchase.
If you are seeking a convenient way to handle your business expenses, look no further than GUAVAPAY. Contact us today:
