Kotak Mahindra Bank does not control or endorse such websites, and bears no responsibility for them. With Kotak’s Corporate Credit Card, you can now waive your surcharges on railway and fuel subject to the limits specified. Cross-border payments are growing quickly thanks to API advancements, improved visibility and transparency, virtual account solutions and partnerships. Three emerging megatrends across payments, technology and risk will transform the cross-border payments landscape and help create new opportunities for FIs. A card number that is stored, shared within the organization and reused is called a ghost card and has its own unique risks and benefits.
Employees should treat their corporate credit card with care and keep it in a safe place to prevent theft or loss, as they would with any credit card. If the card is lost or stolen, they should report that as soon as possible, so it can be canceled and replaced. It’s best not to mix personal expenses with business spending on a corporate card. The company’s name will be on the card along with the employee’s name as a designated cardholder. The employee’s signature goes on the back of the card, just as it would on a personal credit card.
Corporate credit cards vs. small business credit cards
Before starting a corporate card program, businesses should assess the features they want in a corporate credit card program and what types of rewards or rebates suit the company best. Organizations should also examine the corporate card agreement’s fees, and make sure the right technological infrastructure is in place to gain the full benefits of a corporate card program. Before a corporate credit card is activated, an employer may offer (or require) in-person or online training sessions designed to help employees learn the policies. In addition, an employer may post and update policies on its internal website. It’s always a good idea to stay informed, follow the rules, and avoid doing anything that could result in extra paperwork or be construed as fraud. Cardholders who have questions about their employer’s policies should contact the person (or department) that manages the program.
Enhanced Payables Process
Unlike personal credit cards, which individuals use for personal purchases, corporate credit cards are intended exclusively for business purposes. These cards are typically issued under the company’s name and are linked to a centralised corporate account. 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.
The cardholder gets an interest-free credit period of up to 48 days with Kotak’s corporate credit card. Corporate credit cards make expense reporting and management more straightforward. By reviewing and planning their expenses using various reports, management can review and plan their future expenditures. Justin Resuello shares how to save money, travel better and unlock the hidden value of cash back rewards, airline miles and hotel loyalty programs.
Establish policies for all cardholders
With small-business cards, the primary cardholder is personally liable; with corporate cards, the company is liable. Introducing the Airtel Axis Bank Credit Card, which offers benefits such as airport lounge access, annual savings up to ₹18,000, discounts when you pay bills or recharge using Airtel Thanks mobile wallet app, lower interest rates and a lot more. Businesses should establish internal controls and oversight mechanisms to monitor corporate card usage effectively.
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- The card issuer will likely check each employee’s credit before providing them a credit card, but it’s a soft credit pull so their credit score likely won’t be affected.
- Airline miles or hotel points might be most useful for a company that has teams of employees who travel the world frequently to fulfill their mission for customers.
- Although XYZ offers really great deposit services, they may not offer corporate credit cards.
- Corporate credit cards also often include access to accounting software and services designed to help your business manage its corporate line of credit, and your company may receive discounts on common business expenses and retailers.
- Cardholders who have questions about their employer’s policies should contact the person (or department) that manages the program.
Small-business owners may be familiar with business credit cards, but corporate credit cards may be more appropriate for businesses with annual revenues of over $4 million, a track record of success, and an established business credit history. A corporate credit card is tied to a corporate account, making the business entity, not the business owner, legally responsible for all charges made on the card. Corporate credit cards differ from small-business credit cards in terms of liability for debt and fees and rewards and may require a lengthy application process, including financial audits. In many ways, corporate credit cards function a lot like personal credit cards or small business credit cards. You can use your corporate credit card to make purchases for your business, and many corporate cards allow your business to earn rewards on corporate purchases. Your business will need to make regular payments on your corporate credit card account, and your corporate card usage and payment history will factor into your business credit score.
On the other hand, a corporate credit card can also help you continue to build your business credit history. If your small business is legally classified as a corporation, has revenue in the millions and has multiple employees who need access to a corporate credit account, it might be time to consider a corporate credit card. Corporate cards do not require a personal guarantee, so it’s a good idea to make sure your business has built up a solid credit history before applying. If you’re interested in a corporate credit card, you’ll generally have to contact a card issuer directly.
How to Apply for Kotak Corporate Credit Card?
However, corporate credit cards also come with several features that small business credit cards may not offer. These include the ability to issue employee credit cards without having to assume personal liability for the charges. Corporate credit cards also often include access to accounting software and services designed to help your business manage its corporate line of credit, and your company may receive discounts on common business expenses and retailers.
That means the business entity, not the business owner, is legally responsible for all charges made on the card. Once approved for an extension of credit from an issuing financial institution, a company distributes commercial cards to their employees. Employees can then make work-related purchases, such as travel, entertainment and business-to-business expenses.
In most cases, businesses must meet more stringent requirements in order to open an account. Companies should research and compare different corporate credit card options offered by various financial institutions. Key factors to consider include interest rates, fees, rewards programmes, and additional features such as expense management tools and reporting capabilities. If you own and operate a small business, you’re probably familiar with business credit cards.
Editorial integrity
The business receives and pays the bill for all approved charges, and is responsible for all debts. However, depending on a company’s corporate credit card guidelines, their employees may have to pay unauthorized expenses out of pocket, and may still be responsible for filing regular expense reports. Corporate credit card issuers with corporate liability generally won’t check each employee’s credit, and such cards won’t affect employee credit scores for better or worse.
In this comprehensive guide, we’ll explore the concept of corporate credit cards, their benefits, usage guidelines, and considerations for businesses considering their adoption. Most importantly, great value could be unlocked with a rewards program, cash back rebate or earnings credit rate. It is important for any company to engage with its trusted commercial bank relationship manager, treasury management specialist or dedicated bank client service professional when evaluating if corporate credit cards could benefit a business. A key advantage of a corporate credit card is that it makes it easier to manage expenses for employees and employers alike. From a business perspective, a corporate card allows employers to place limits on how much cardholders can spend per transaction, per spending category, or overall.
The company can also control where a card can be used, limiting purchases to specific merchants, types of merchants, and locations. Since corporate credit cards don’t require a personal guarantee, a credit issuer probably won’t do a hard inquiry on your personal credit. This means that you could have a low personal what is corporate credit card credit score and still have your business qualify for a corporate credit card. On the other hand, if your business has bad credit or has only developed a limited credit history, you might have a harder time taking out a corporate line of credit.