The second element is what makes corporate cards such a great asset for large businesses. You can monitor and control employee spending with corporate card-specific features like spending limits, eliminating reimbursement processes, and more. Corporate credit cards, also called commercial cards, can help businesses easily manage their expenses, improve oversight into spending, simplify reporting and reduce operating costs. If you’re applying for a secured business credit card, the issuer may not perform a credit check.
- In most cases, businesses must meet more stringent requirements in order to open an account.
- Other factors, such as our proprietary website’s rules and the likelihood of applicants’ credit approval also impact how and where products appear on the site.
- Some corporate credit cards come with perks like points, miles or cash back.
- Pandemic restrictions, inflation, and high interest rates hit them hard as they were starting their professional careers and getting their financial footing.
- Since they are sometimes more complex, corporate cards often come with their own designated customer service representative who can help resolve any issues quickly.
- Serving the world’s largest corporate clients and institutional investors, we support the entire investment cycle with market-leading research, analytics, execution and investor services.
Though he lost his job this year, he still took trips to Europe and New York. The company no longer advertises a welcome bonus or intro offer for new users. You can use Brex for $0/month or you can opt for the Brex Premium plan for $12/month per user if you want advanced features and dedicated support. Certain purchases are ineligible for Rho’s cash-back (see our review for full details). Of course, if you run a larger small business, the extra benefits may be worth it.
The company can also control where a card can be used, limiting purchases to specific merchants, types of merchants, and locations. The best business credit cards offer strong rewards, competitive APRs, and business-related perks like partner discounts or accounting integrations. Each card on this list offers a wide variety of perks and a range of credit score requirements so you can find the best credit card for your small business. Business credit card eligibility will vary by the lending institution and may depend on the business’s (or business owner’s personal) existing credit history. For those with no or bad credit history, many banks offer secured business credit cards to help establish or rebuild business credit; these often have higher interest rates and additional fees as well as requiring a security deposit.
Business credit cards are best for small businesses owners
Meanwhile, credit-card companies have targeted young people as eager new customers. While Gen Zers’ overall debt levels are still lower than older generations’, young consumers’ early reliance on credit cards puts their financial futures at risk. The accounts payable and expense management features also make it easy for small businesses to manage their spending. As we note in our Expensify review, the platform offers a wide range of expense management, invoicing, bill payment, and travel features. Your company will collect up to 1.5% cash back on purchases — a very solid flat cashback rate for a corporate card with no earning cap on rewards.
How To Apply For A Business Credit Card
Companies that make corporate cards available to employees typically have a written policy—or an entire manual—regarding their proper use. Employees should try to follow these rules from the get-go to avoid making mistakes that could lead to accounting nightmares or worse. This means familiarizing themselves with the company’s general spending and reporting requirements and finding out if there are any spending limits that apply to certain categories.
Do I Need A Business Credit Score To Apply For A Business Credit Card?
To qualify you for a business card, your issuer will look into your credit history and personal credit score to determine your creditworthiness and likelihood of paying back what you charge on time. That means the employee must stay current on paying the bill in the short-term and request reimbursement by filing an expense report. It’s not necessarily ideal for employees, who may not have the cash or credit available to pay for large charges until their expense report is processed. If you have any questions about how your corporate credit card should be used, talk to your manager or reach out to a team member in accounting or finance. Business credit cards allow small business owners and their authorized users to charge all their business expenses to a business account. With small-business cards, the primary cardholder earns rewards on the card.
What is a business credit card?
While small business credit cards typically require a personal guarantee, corporate credit cards do not. However, corporate credit cards are intended for large businesses and usually require your business to have an annual revenue of over $4 million. For example, Company ABC currently processes purchase orders of around $250,000 each year and generates $2 Million in annual revenues. Although XYZ offers really great deposit services, they may not offer corporate credit cards.
Our partners cannot pay us to guarantee favorable reviews of their products or services. Once you’ve found a card that looks promising, check out our post on how to get a corporate card to help walk you through the application process. We what is corporate credit card spend hours researching and evaluating each corporate card that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.
These tools also streamline the process of reconciliation and reimbursement. Corporate credit cards don’t require a personal guarantee, so a credit issuer likely won’t do a hard inquiry into your personal credit file. Some corporate credit cards come with perks like points, miles or cash back.
Our choices include corporate cards from newer fintech card issuers along with a few options from the most popular credit card issuers. The best corporate credit cards offer spending rewards, expense management tools, employee cards, and more. Corporate credit cards and small-business credit cards are not one and the same. While corporate credit cards are designed for corporations with multiple employees and revenue in the millions, business credit cards are designed to meet the needs of small-business owners, including freelancers and those with side hustles.