What Is a Corporate Credit Card? Guide to How Corporate Credit Cards Work
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What Is a Corporate Credit Card?
How Do Corporate Credit Cards Work?
Types of Corporate Credit Cards
Pros and Cons of Corporate Credit Cards
Personal credit protection With the most common type of corporate card, the account has no effect on the user’s personal credit. You and your employees won't have to undergo a credit check that could impact your personal credit score to qualify for a corporate credit card and your credit scores won’t be hurt in the event of a delinquency or a default. Personal asset protection Corporate cards are issued on the basis of the company’s financial strength, not the owner's personal finances. This means that if the company goes under, or should any employee use the card fraudulently, your personal finances and assets won’t be at risk. Easy expense tracking Corporate credit card programs typically offer businesses-friendly ways to track expenses. Employees with cards can usually file their expenses electronically, making it easy for you to see where and how they are spending company money without having to check expense reports. Spending limits With a corporate credit card, managers are able to set limits on the amount of money employees can spend, as well as designate categories in which they can spend. This can help you protect against personal or fraudulent spending. Only available for larger companies To qualify for a corporate credit card, a business must be incorporated, which excludes sole proprietorships. In addition, many corporate card issuers want to see at least $2 million in annual revenues. Lengthy application process Getting a corporate credit card is usually much more involved than getting a personal credit card, or even a business credit card. Issuers typically want to review a company’s financial statements, legal documents, and income projections. The application may even include a financial audit. Minimum number of cardholders Some corporate card issuers require that eligible corporations sign up for a minimum number of employee cards, which could be as high as 15, and there may be an annual fee for each card issued. High spending requirement In some cases, corporate card issuers will want you to guarantee a certain level of spending, such as $250,000 or more each year.
How to Qualify for a Corporate Credit Card
Registered as an S Corp, C Corp, or LLC A business (rather than home) address An established business credit score At least $2 million in annual revenues Being in business for at least 12 months At least 15 authorized card users Estimated charges of $250,000 or more each year
How to Get a Corporate Credit Card: Applying for a Corporate Credit Card
Recent audited financial statements Information about your company's structure Federal tax ID Recent business tax returns Business's credit history and credit score Contact information for company’s representative (such as president or treasurer)
How to Manage a Corporate Credit Card
Establish One or More Account Administrators
Create Card Holder Policies
Monitor and Manage Expenses
When to Use a Personal or Small Business Credit Card Instead
Frequently Asked Questions
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