So if you’re reading this, congratulations! That means you have successfully planted the seeds for your business. Way to go, entrepreneur you! Now, all you have to do is make sure your business, no matter how big or small, stays afloat and earns enough (or more!) to pay the bills. Owning a business comes with a chain of expenses–equipment, office rent, tool subscriptions, or workshops and conferences for your employees. Some of those future expenses will need more than the amount of cash you have on hand, while some are purchased online.
This is where corporate credit cards come into play and become a necessity for all rising company proprietors. But what exactly is a corporate credit card? What does it do and how does it help your company’s finances? And more importantly, how will you choose which card fits your business’ nature?
We’ll answer all those questions in this short course about credit cards. Learn the advantages of having a corporate credit card for your small or medium business and which card to apply for.
What is a corporate credit card?
Corporate credit card, also known as business or commercial credit card, is issued only to businesses. Like any other credit card, it functions as a payment option for cashless transactions or purchases that are usually done online. Its rewards and perks are specifically designed to appeal to the needs of the company, such as; points awarded for every purchase of office supplies, discounts on fuel for your company vehicles, or travel discounts on plane tickets or hotel accommodation.
What makes a corporate credit card unique is it can be delegated to select employees. It’s a no-brainer to hire someone you can trust no matter how minute the detail is. Additionally, you should also be confident that they are trustworthy to carry a company-issued credit card. As the company owner, you have the right to choose who will have a corporate credit card issued in their name. Your nominated staff can be the company’s manager, someone from your Human Resource admin, your purchasing department head, or anyone in the company who is most likely to make purchases.
When applying for this type of card, make sure to discuss with your bank if you want the company to be the sole responsible for bill payments (meaning, no one, aside from the company, will be expected to settle purchases made through the card), or you want the responsibility shared between the company and the nominated staff.
Advantages of a corporate credit card
Unlike big corporations, small to medium enterprises have fewer expenses, but this doesn’t mean a corporate credit card won’t be helpful to your business anymore. Here are some of the notable benefits of corporate credit cards that prove you definitely need one for your business.
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Allows you to manage expenses better
Of course, no one wants to see their personal expenses mixed with the company’s bills, right?
That is why owning a corporate credit card is one of the first things you should do when establishing your business because it separates your personal expenses from your company’s purchases. Since you will be using your corporate credit card for expenses and purchases made for your business, you can keep better track of all company spending without having to audit your bill and filter personal expenses out.
Aside from this, employers can also set a certain limit on how much each cardholder can spend per transaction, and place spending restrictions on where the card is allowed to be used–you can exclude online gambling, jewelry, or casino merchants.
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Better reward points and perks
Most credit cards–personal or corporate–offer bonuses and discounts.
The good thing about having a corporate credit card is its rewards or perks system is specifically tailored to fit your business’ needs. Corporate credit card bonuses and discounts inclusion vary per bank in the Philippines, so make sure to review the bank’s offer before you apply.
Some banks offer travel insurance for your company’s business travels, discounts on leading office supplies stores, or cash rebates.
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Boosts your credit card limit and credit reputation
In a nutshell, a credit card limit is a total amount you can spend using your card in a given time. This includes your card subscriptions, expenses, cash advances, finance charges, and service fees.
Therefore, the higher the credit limit, the greater the purchasing power. This leads to easier procurement of any supplies or acquiring any services needed by the company.
Banks base a credit card limit according to your income. Filipino entrepreneurs can submit the company’s financial statements, then the bank will review and decide how much your company credit card limit should be.
On the other hand, being a responsible cardholder of a corporate credit card can earn you a better credit reputation–this makes applying for cash advances or another credit card more possible and easier. Make sure to always pay on time and avoid maxing out your limit.
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Acts as a financial cushion for your business
No matter how fast-earning a business is, entrepreneurs don’t always have cash on hand. If an emergency happens and the bills you have are unfortunately insufficient, what do you do? This is when your corporate credit card becomes useful.
Having the plastic card gives small and medium business owners the confidence to spend without fear of slashing a significant amount from their cash.
Corporate credit card is a temporary financial support for a company when the business hits low or during the economic crisis. It gives you the needed funds to keep your business operations running and uninterrupted even in downtimes.
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Top 5 corporate credit cards for your business
Each bank has different reward systems, features, annual fees, and interest rates imposed on their credit cards. We gathered 5 of the most appealing corporate credit cards for small to medium businesses, in no particular order, here:
BPI Corporate MasterCard
The BPI Corporate MasterCard focuses on business operational efficiency and cost-saving purchases. The card allows you to disburse cash to employees and issue numerous checks to suppliers and partner merchants. Some of the notable advantages of acquiring this card are; free travel insurance, low foreign currency exchange rate, and the option to pay in installment. BPI Corporate MasterCard boasts its BPI Express Data Online, an online tool that manages your expenses and reimbursements.
| Annual Fee | PHP 1,700 |
| Interest Rate | 3.50% |
| Cash Advance Fee | 3% of the withdrawn amount |
BDO MasterCard/Visa Corporate Card
Filipino entrepreneurs can apply for either BDO’s MasterCard or Visa Corporate Card. This card is tailored to organize employees’ expenses. Cardholders can enjoy cashless transactions and an auto-charge option for bill payments. BDO Corporate Cards are accepted in over 24 million locations around the globe. You may avail cash advance through ATMs worldwide.
| Annual Fee | PHP 1,800 |
| Interest Rate | N/A |
| Cash Advance Fee | 5% of the withdrawn amount |
UnionBank Corporate Visa Card
UnionBank Corporate Visa Card offers one of the lowest interest rates for cash advance among banks nationwide with only 2.9%. And, with every PHP20 spent using your card, you earn 1 reward point. Accumulated rewards can be used to redeem services such as gas, dining, and travel expenses. Additional perks you can enjoy when you apply for this corporate card is access to Club Manila Lounge at NAIA Terminal 1 for free and the option to imprint your company logo on the card for corporate identity.
| Annual Fee | PHP 1,500 |
| Interest Rate | 3.50% |
| Cash Advance Fee | 2.9% of the withdrawn amount |
PNB Multi Corporate Card
Business owners in the Philippines can use PNB Multi Corporate Card for all types of company expenses such as purchasing, distribution, and fleet. Convenient payment options are also available for your choice. You can either set it to any of these two:
- Individual payment – Select employees who are issued with the PNB Multi Corporate Card will each receive a billing statement every month and are responsible for settling the payment directly in any PNB branch.
- Central payment – By the name itself, this consolidates all amounts to be paid in one account through the online centralized billing. Bills can be paid in a lump sum on the corporate account.
RCBC Bankard Classic Card
The RCBC Bankard Classic Card is perfect for all young business owners of small and medium enterprises or startup companies. The card features a reward point system that allows you to convert accumulated points to cash rebates, shopping, cash credit, and donation. It also has a Spend Analyzer system that gives you a detailed audit of all your expenses in a month.
| Annual Fee | PHP 1,500 |
| Interest Rate | 3.50% |
| Cash Advance Fee | 3% of the withdrawn amount |
Things you need to apply for a Corporate Credit Card
Thinking of applying for a corporate credit card? Here are some of the basic requirements you need to secure for your company credit card approval:
- Enrollment form
- Notarized Board of Directors’ Resolution
- Photocopies of selected employees’ identification cards
- Cardholder information sheet
- Company’s financial statements
- Company’s bank statements
Corporate credit cards, when used strategically, can be a huge asset to your company’s financial status. If you’re ready to avail a credit card for your small to medium business, it’s best to contact your chosen bank first to check all requirements and documents needed for a credit card application.
Choosing the best corporate credit card for your business may be a little tedious for a busy entrepreneur like you. Rakuboss has efficient Filipino virtual assistants, financial advisors, and company secretaries you can hire for freelance opportunities who can handle the job for you.
