Various perks of having a corporate credit card

– An Overview

A corporate credit card is a credit card which the employer specifically issues to the employees. Of course, not all employees get corporate credit cards. Only a few specific employees receive corporate credit cards. The employer issues the corporate credit cards only for some specific facilities and reasons.

A corporate credit card can only be used for purposes connected to the business world. All the expenses which are related to the company-transactions are done by a corporate credit card. Not all companies can provide corporate credit cards to their employees. Only a few established and multinational companies can issue corporate credit cards.

These employers let the employees charge the companies over any expenses related to business. These expenses include hotel bills, plane fare charges, restaurant charges, cab, and many more. In such cases, the employee will not have to use their personal credit or debit cards. Nor will they have to use cash.

– How does a corporate credit card assist the employees?

A corporate credit card is sanctioned to the employees for their business trip abroad. It is a way of letting the employee know that the company will bear all the expenses. The expenses will be billed for the companies. These types of corporate credit cards are permitted to employees who are in top positions in a company.

The employees will not need any gift cards or other means of payment. Moreover, the employees can never use a corporate credit card on a personal basis. Such an action is a violation of the company rules and policies. If the company finds out that an employee is doing such a nuisance, his card will be canceled. Moreover, assigning an employee with a new corporate credit card is absolutely the decision of the company.

– Which employees can use a corporate credit card? Employees who are highly positioned in a given company, are the ones who are sanctioned with corporate credit cards. These credit cards are specially designed to be used for all the trips which employees take for the company projects. Moreover, these employees need to be highly influential. They need to be important to the company. Some companies pre-set the credit limits for the employees.

The employees are provided with these credit cards with the facility of a balance that can be revolving. Sometimes, the employees can go on with a minimum amount of monthly payment. Moreover, employees do not need to have good personal credit.

– Advantages of using a corporate credit card

The specific advantages of using a corporate credit card are as follow:-

1. Corporate credit cards provide lower risks to the employees.
2. Corporate credit cards do not make the employees responsible for using it.
3. A corporate credit card involves no jeopardy. As there is no private expense involved. Moreover, there is no guarantee required on a personal level.
4. Corporate credit cards never impact the employees’ personal credit score. As a matter of fact, it will not be billed in the employees’ personal credit history. All the bills will be counted under the company’s credit history.
5. However, the employees can borrow money from the credit line. Of course, the company must know about it from before. The representatives cum employees will have to reimburse it later.
7. Many times, the employees can go on without paying the full amount against the credit used on the personal line.
8. Corporate credit cards are 100% guaranteed and authentic. The chances of risk are pretty low.

– Conclusion

Start-up companies are usually unable to provide corporate credit cards. It is only the big multinationals who provide these cards. The big companies do not check the credit balance of an employee. If they issue a corporate credit card on their name, they do it. On economical terms, a company with an annual turn up more than 40 lakh dollars is qualified enough to cash on a corporate credit card. These companies know how to provide perks to their high-end employees.