Businesses have been relying on employees taking care of office expenses out of their pocket, which are later refunded. It has been a traditional practice and continues to be a default approach, especially for business trips. However, the painstaking process of collecting receipts, submitting claims, and delaying reimbursements is demanding a change. It puts undue financial pressure on employees who regularly travel for work. This can be simply replaced with corporate credit cards in India. They are convenient and flexible payment tools that provide businesses with multiple benefits of effective expense tracking and rewards. However, there are a lot of doubts and unaddressed queries around corporate credit cards in India such as who can get it, what is the process, and so on.
In this blog post, we will cover everything that you need to know before getting corporate credit cards in India, while also discussing its benefits briefly.
What is a Corporate Credit Card?
Company credit cards are payment solutions that banks and other financial institutions issue to companies to take care of their business expenses like travel, dining, and office supplies. They work just like your credit or debit card but are linked to a company account instead of an individual. Moreover, the responsibility to clear its bills usually lies with the company.
Corporate credit cards in India are fast becoming the favorite payment cards for entrepreneurs and business owners to handle corporate spending. These are typically issued to employees when they are traveling for business like meeting a client or attending a trade event, or when they are purchasing office supplies. These cards also come in handy when getting subscriptions for SaaS or software.
Benefits of Corporate Credit Cards in India
- It simplifies expense management: Corporate credit cards allow you to abolish the practice of employees using their funds for business spending.
- It stabilizes cash flow: Corporate credit card gives access to short-term credit access that companies can leverage to reduce strain on cash flow, by keeping working capital healthy.
- It gives better expense visibility: Companies can keep track of every expense that happens through the corporate card as it ensures transparent transactions.
- It enables better expense control: Business leaders can implement corporate expense policy consistently through a card by configuring rules like spending limits and categories.
- It offers better rewards: Corporate credit cards come with loyalty and rewards programs like usage points, cashback, or exclusive discounts that can be redeemed for travel and other purchases.
- It reduces the risk of fraudulent transactions: Companies can reduce the instances of fraud and deceit with corporate cards with inbuilt security features and best practices.
Now that you understand the business advantage you can have with corporate credit cards in India, let’s take a look at the application process and the eligibility criteria.
Eligibility Criteria for Corporate Credit Cards in India
Let’s take a look at the factors that card providers look at when deciding if your business qualifies for a corporate credit card in India. Although we listed all the criteria that these institutions consider, some may seek fewer details than others based on their model.
- The company must be registered as a legal entity in India either as a Pvt. Ltd. company, partnership firm, LLP, or proprietorship. Some card issuers also provide cards for NGOs and startups.
- Some banks may even consider the age of the business with a minimum requirement for the company to be operational. However, it is not mandatory for all the card providers.
- Traditional banks will evaluate the financial health of your business, so they may look at your annual turnover, profitability, and debt.
- To get the card, you will have to submit regulatory documents like a PAN card, Aadhaar card, MOA/AOA (for registered companies), GST certificate, and utility bills for business addresses.
- Some institutions may also seek a good credit history to assess if you can pay off the credit you will be taking on the card.
Process to Apply for Corporate Credit Card in India
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Step 1: Understand your business needs & why you need a corporate credit card.
Step 2: Research available corporate credit cards and identify the ones that match your requirements
Step 3: Understand the application process
Step 4: Apply for the corporate credit card
Step 5: Review the assigned credit limit and cardholder agreement once the application is approved
Step 6: Configure and implement account management system}
Let’s take a step-by-step process to apply for a corporate credit card in India.
Step 1: The first step to getting a corporate credit card in India is to understand your business needs. Determine what you are going to use the card for primarily – to buy office supplies, to get subscriptions, or for business travel. This will help you inform the features and benefits that you would need.
Step 2: Once you have a clear idea of your applications, make a list of available options and see which cards are the closest match for your requirements. Some of the factors that you must look at include:
- Annual percentage rate & annual fees
- Offered credit limit and billing cycle
- Spending controls and reporting features
- Integration and security options
- Rewards program and partner network
Step 3: Now understand the application process for the particular card provider you have selected. Generally, this step involves collecting all the necessary documents that you will need including financial statement, credit score, etc.,
Step 4: Apply either offline or online and wait for the issuer to get back to you. It is ideal to dedicate one resource to keeping in touch with the bank for regular updates.
Step 5: Once your application is approved, check the assigned credit limit and cardholder agreement to understand details like dispute handling and unauthorized charges.
Step 6: Configure account management system like setting up expense trackers and automating report generation. You can also implement an autopay feature to clear credit card bills to avoid late payments and penalties.
Get the best corporate credit card with Zaggle
The traditional banking process to apply for a corporate credit card is tedious and demoralizing for new businesses. Since these institutions require a minimum operational period and revenue to qualify for a credit card, most businesses choose to fall back on the conventional approach of having their employees take care of business expenses. However, businesses now have a better option with YES Bank Zaggle co-branded corporate credit card in India. It has a hassle-free application process and you will have your card within 15 days.
Additionally, Zaggle appoints a dedicated executive to help you through the process. Coming to the card benefits, Yes Bank Zaggle corporate credit card offers a 50-day interest-free credit option that helps you manage your daily expenses. Zaggle corporate credit cards are bundled along with access to Zaggle ZatiX, a SaaS-based spend analytics solution. It gives you a detailed analysis of your expenses and insights into how you can improve your cash flow.
Apply for the Yes Bank Zaggle Corporate Credit Card here.