Thursday, August 05, 2021

Business

You Must Know these Corporate Credit Card Policies For Your Business

PUNJAB NEWS EXPRESS | June 17, 2021 04:30 PM

Corporate credit cards are issued to established businesses by banks. The whole point of these cards is to make monetary transactions flexible. Thus, a credit card issued by a company to the employee can be used to pay for business costs. As opposed to a business credit card, a corporate credit card does not put the onus of repayment solely on the owner. The best credit cards allow more flexibility and help you to make a statement as a business house.

How are the Liabilities Shared?

The liabilities of a corporate credit card can be categorized as an individual, corporate or joint liability. In the case of individual liabilities, the employee has to conduct all the transactions. Once the employee makes the repayment, they can request the employer for reimbursement. In the case of corporate liabilities, the company/employer takes care of everything. Finally, in the joint liabilities category, responsibilities are shared between the employer and the employee. However, if the employee fails to make the payment on time, it is their individual credit score that gets affected negatively.

At the outset, it seems like the individual and joint liabilities options suit as a business owner more.  However, a business should share responsibilities for ethical reasons. It behooves an employer to take care of the financial comfort of the employees. Furthermore, opting for corporate liabilities helps you to organize your finances. Thus, it becomes easier to track transactions and keep a track of the company liabilities.

How Do the Corporate Card Policies Benefit You?

The corporate credit card policies favour you as a business owner. You have full control over the use of these cards and can track where the card is being used. If you wish, you can restrict the usage of the card to a few places for convenience. Moreover, you also have control over the maximum amount of money that can be spent at a merchant establishment for company expenditure.

There is absolutely no reason to worry about the possibility of embezzlement. Corporate credit card policies restrict any sort of personal use of the card. Other facilities like cash advancement or electronic cash transfer are denied to the approved employee. Any misuse of the card or violation of the rules and regulations set will result in the cancellation of the credit card privileges. The best credit cards also allow the business owner to deduct the misused amount from the employee’s monthly salary. This is ensured by making the employee sign a declaration that empowers a business owner to do so.

How to Apply for a Corporate Credit Card?

Applying for a corporate credit card is as easy as it gets. However, do the most basic check that should be done before applying for any credit card: CIBIL score. Make sure that you maintain a healthy CIBIL score so that you have no problem procuring a corporate credit card in no time. These are the steps that you should follow thereafter:

  1. Visit the issuer’s office in person or log onto their website to go through all the rules and regulations pertaining to the credit card.
  2. Before you decide on a card, make sure you compare enough credit cards and judge them based on relevant features.
  3. After you choose your card, make sure you fulfil the eligibility criteria put down by the bank.
  4. Keep all the required documents ready. You will need to submit these when you submit your application form.

Perks of Owning a Corporate Credit Card

A corporate credit card has several benefits that you have immediate access to, once you get the card. Some of these include:

  1. Reward points with every purchase that your employee or you make for your company. These reward points can later be redeemed as discounts.
  1. You can save about Rs. 55, 000 if you use the card optimally. If this is the savings you make on a single card, imagine what you will save if you allocate these cards to strategic employees..
  2. You do not need to worry about emergencies or a cash crunch with the cash advancement feature on these credit cards.
  1. There are different types of credit cards that you can issue to your employees, according to the type of expenditure you expect them to make. This facility reduces the misuse of resources significantly.
  2. You can get attractive perks on movie tickets and restaurant bills that you can confer upon your employees based on their performance at work.
  3. As a business, you are easily going to meet the optimal expenditure required to unlock further benefits sponsored by the bank.

If you want to get the best credit card today, you can opt for the Bajaj Finserv RBL Bank SuperCard. You can easily log on to the Bajaj Finserv website and check your pre-approved credit limit. You will need to enter a few basic details like your name and contact number to proceed with the application process. The SuperCard carries the power of four different cards in one, making it one of the best credit cards issued within the country.

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