What is a company crad?
A company credit card is used when employees need to pay for products or services needed in relation to their work. As opposed to personal credit cards that are used in private circumstances. Unless the company does not issue company credit cards. Then the employees have to use their personal credit card and afterward get reimbursed. This is also referred to as an outlay.
Companies of all sizes can acquire company cards. In addition to the convenience associated with having a company card, it can actually help a company building a better financial credit, that, in the long run, provides more favorable options for future loans. Sometimes it is necessary to provide a personal guarantee – that might be the case when smaller or start-up companies applies for company cards.
A company card is referred to as company card, company credit card and business credit card, but it is the same.
How does a business credit card work?
You apply for a company card much the same way as regular private credit cards. A number of different financial institutes offer company cards and as a loaner from a company, it is possible to apply with or without an employee ID. This enable all companies – no matter size – to apply for a company card.
Pros and cons for a company card
With a company card, you and your employees will quickly experience how it gets easier to handle business-related expenses. The accounting will also be less messy with a lot of attachments from your employees.
As other payment cards, there are many pros by having a company card. By having the card issued through the company you will ensure a simpler and more transparent overview of the company’s expenses. Also, the company card can be used as a tool to build up company credit, which can be beneficial in less busy or profitable times. Using company credit cards for a longer period of time can result in a better credit, which enable the company to loan a bigger amount from banks. This means that a business credit card be used as a stepping stone for the company.
Give your company card superpowers
Did you know that it is possible to let your company card “take care” of the accounting? At least partial. This you can do by digitize the expenses from the moment it occurs to the the moment it is posted.
This also means that an integration to the company card and the finance system is made in order for relevant data to be shared automatically.
Do you want to know more?
In Acubiz we help digitizing the expense process as well as integrating company card and finance system. Learn more about software integrations or read more about the integrations options with Acubiz.