A credit card always comes in handy when you want to pamper yourself or when you need money desperately. It is a possession that supports you, but at the same time, it comes with its downsides. Now, you may ask: What is a corporate credit card? Well, the answer is simple.
Medium and large-scale businesses issue corporate credit cards to their employees, not for their personal use but for office use only. An employee can use a corporate credit card only for expenses related to the office, such as expenses on business trips, hotel expenses, buying stationery, furniture, inventory items for office usage, and more. There are many corporate credit card benefits, and we will look at those, one by one.
Benefits of having a corporate credit card
- The earned reward points help the company in many ways.
- You can simply keep a tab on all the office-related expenses and create a budget sheet to streamline the costs. Basically, you will receive a consolidated account of where and how the money is being spent. If the company asks you to carry on with cost-cutting, you will know precisely when to pull the plug.
- Previously when thecorporate credit card was not a thing, employees had to pay for the company-related expenses from their own pockets. Later on, they applied for reimbursement, and the whole process was time taking and sometimes stressful.
With acorporate credit card, employees do not have to make the payments from their pockets; they can use the company credit card and continue to enjoy the privileges. Similarly, it also helps employees become responsible as far as sensible purchases are concerned because they are answerable to the company.
- It ensures a systematic spending pattern. No company can thrive for long if the spending pattern is erratic. So, a company credit card is the best tool that facilitates the refinement of the finance management skills of the employees. Plus, the employees learn to restrain themselves from putting their personal charges on the corporate credit card.
- The cards generally have dedicated customer care service working round the clock to assist cardholders.
- These credit cards allow cardholders to enjoy the privileges of domestic and airport lounges.
- One of the significant corporate credit card benefits is that you can apply for an emergency loan on behalf of the company if need be. Furthermore, if you lose the card by mistake. You can ask for easy replacement. This is not all; if you by chance lose your luggage, the cardholder will receive assistance in locating the baggage that has been misplaced or lost, for that matter.
- A company has complete control over defining a threshold on the overall amount spent and limiting the amount paid for each transaction.
- A company can put restrictions on using the card in specific countries or with particular merchants.
- Banks that give out corporate credit cards collaborate with a myriad of leading brands globally to enhance the experience of using the card.
Things you should know
If you receive the credit card bill, you are liable to repay the amount. Later on, you can ask for reimbursement from your company. Yes, the process will not be lengthy because you don’t have to collect receipts and bills to show in order to get the reimbursement. By chance, if you default and fail to pay the amount within the due date, your credit score will go down.