Corporate credit cards are known to simplify corporate transactions and implement a better control over the travel, entertainment and other business-related expenses of large corporate and business houses. It so happens that most business owners find it difficult to keep track of the business expenses, when using a personal credit card as the latter has fewer options to showcase the expenses in detail.
A corporate credit card is issued only to corporations, government entities and non-profit organizations. The most important benefit of corporate credit card is that it makes easy the procurement of goods and services, by simplifying the payment method. Most importantly, the corporate cards are hardly ever advertised in traditional media, nor is it made available as a prepackaged product. Corporate credit cards are instead made available as a custom-made option as per the client requirement.
Corporate credit cards issued by banks or large financial institutions, are also provided to employees in large corporations, for company or business expenses. These cards issued to employees, known as corporate charge cards help the organizations keep a track of the business expenses of the respective employee.
Corporate Credit Card Features
· The annual fee for corporate credit cards is relatively low.
· The maximum credit limit on these cards can vary from $50,000 to millions of dollars.
· The interest rates can however, fluctuate from 12 to 29 percent.
Although, this rate is substantially higher than that for personal or small business credit cards, the edge here is mainly due to high credit limits.
· The repayment can be made on a monthly, bi-monthly or quarterly basis; and the terms are quite similar as the small business credit card account holder.
· Moreover, the credit limits in a corporate credit card is raised by credit card companies, as corporations undergo expansion.
Corporate Credit Card Benefits
· The organizations receive detailed statements each month.
· Corporate credit cards help to make the primary distinction between business and personal accounts.
· The business house can transfer cash balance from one account to another.
· The corporate credit card can be used across the world.
· It can be configured as per company directives to manage entertainment, travel and other business-related expenses; thus making it a customized credit card.
· Corporate credit cards simplify large accounting and auditing tasks and also minimize the risk of theft and check fraud by indulging in huge amount of money transactions.