Should I Get a Corporate Credit Card?
Does your company make at least $4 million in revenue every year? Would you like to provide a number of your employees with a credit card and even a department that tracks credit card payments? If so, you might be eligible for a corporate credit card.
All corporate credit cards are intended for businesses that make several million dollars in annual revenue; they also do not require a personal guarantor (ValuePenguin.com). This means that any late payments, delinquencies, and any other actions are tied entirely to the company the card is issued (as opposed to one individual).
Steps to Getting a Corporate Credit Card
The steps to getting a corporate credit card can be significantly easier if your company is very large, successful, has a great credit rating, and has a very detailed backup of its finances and other aspects of the company. The steps include (ValuePenguin.com):
- The business is required to submit its tax ID number to the issuer of choice.
- An audit of your company’s financials and business credit score will be performed.
- If all minimum requirements are met, a contract will be drawn up by the issuer and the corporate credit card account will be opened.
kinds of corporate credit cards
There are two types of corporate credit cards: individual payment cards and company credit cards. With individual payment cards, employees are responsible for submitting their own expense reports based on the company’s policy, and paying the issuer directly for any charges. Company credit cards mean that the employer picks up the tab for all company-sanctioned charges.
Both kinds of credit cards should allow for companies to track the employees’ spending on the cards, to ensure the charges are 100 percent related to that individual’s job. If the company disagrees with a charge on the employee’s account, they can choose to make that individual liable for the payment, regardless of the card type. If the company is fully liable for a payment, the cardholder’s credit score is not in danger. (CreditCards.com)