Corporate Credit Card

A corporate credit card allows businesses to exercise better control over their travel, entertainment and other business-related expenses. Most large business owners find it difficult to keep track of their business expenses when they use personal credit cards to access a line of credit. The only way to avoid confusion at a later date is to use a corporate credit card, which is issued only to corporations, government entities and non-profit organizations. A corporate credit card eases the procurement of goods and services by simplifying the payment procedure.

Corporations can provide these corporate credit cards to its employees to keep track of their business expenses. Cards that are issued to employees are also called corporate charge cards. Corporate credit cards are issued by large financial institutions or banks.
Corporate Credit Card: Features

A corporate credit card is rarely advertised in traditional media, since it is available as a custom-made option, rather than a prepackaged product. The other features of corporate credit cards are:

* The repayment terms are very similar for the small business credit card account holder. The payments can be made on a monthly, bi-monthly or quarterly basis.

* The interest rates can range from 12% to 29%, which is substantially higher than that for small business credit cards or personal lines of credit. This difference is primarily due to high credit limits.

* The annual fee for such cards is low.

* The maximum credit limit on these cards can range from $50,000 to millions of dollars.

* As corporations undergo expansion, credit card companies usually raise the credit limits.

Corporate Credit Card: Benefits

A corporate credit card helps business owners:

* Distinguish between business and personal accounts.

* Receive detailed statements each month.

* Transfer cash balance from one account to another.

* Use the credit across the world.

* Control travel, entertainment and other business-related expenses.

* Travel and make requisite business purchases without carrying excessive cash. This reduces the risk of theft and check fraud.

* Simplify accounting and auditing tasks.

Corporate Credit Card: Problems

Corporate credit cards:

* Are difficult to obtain. A company trying to obtain the card must have a good credit history over a long period of time, substantial assets and a history of generating healthy profits for a maximum of five consecutive years before applying for a line of credit.

* Can pose a problem when corporations try to transfer large balances.

How to Apply for a Corporate Credit Card

To obtain a corporate credit card, a corporation needs to:

* Compare the cards offered by corporate credit card providers to get the best deal in terms of interest rates and credit terms.

* Provide information, such as business name, address, annual revenue and start date. The phone and fax number, tax identification number, industry type and the names of the people who will use the card are also necessary to complete the application form.

* Decide on the method of applying for the corporate credit card. While the credit card can be applied for in person or over the phone, the most popular method is to fill in an online application form.

* Carefully fill in all the essential fields in the form and wait for the approval from the credit card provider.