Lately, corporate credit cards have been all the rage. They have seen a surge in demand because of the evolving needs of Indian startups.

Corporate credit cards aim to solve the hassles of digital spending for startups.

So, if you are a startup owner and don’t have a corporate credit card yet, we’re going to tell you why it’s a good idea to get one. Read on.

What are Corporate Credit Cards?

Corporate Cards are credit cards issued by a bank to businesses and startups. You can choose to extend the card to your employees to help create a seamless reimbursement experience. This way, your employees don’t have to use their personal funds to pay for business-related expenditures and go through with the reimbursement process. 

Corporate credit cards increase your startup’s purchase power while improving the cash conversion cycle with short-term credit at no cost (zero interest). 

Some expenses, such as SaaS subscriptions, cloud services, and marketing, can only be done with a credit card. With corporate credit cards, you also get a higher credit limit than personal cards to make all business expenses without affecting personal liability.

Apart from helping manage finances, corporate credit cards make compliance and reporting much easier for startups that need to focus on the core business. They also have various perks to offer in terms of rewards and lower charges for international transactions.

Why do you need a Corporate Credit Card for your startup employees?

No personal liability: 

Every startup owner understands that business transactions can get tricky, mainly due to the high transaction value involved. Later, when such a situation arises – using your personal credit card risks your personal credit limit. However, a corporate credit card has no liabilities on the individual.

Better expense management:

You will have complete control and visibility over business spends made by your employees. You can set an upper limit on funds that your employees can use. This helps you manage your expenses well. 

Reduced risk of fraud:

You get greater visibility of expenses made by your employee when they use a corporate credit card. This helps the audit and finance teams to spot fraudulent purchases and non-business expenses better. Any expense or refund will occur on the same card, which means there’s no room for misuse. 

Rewards and cashback:

This is another benefit of using corporate credit cards. You can earn cashback and business rewards for any expenditure made using the card. So, you can save money on your corporate expenses while using the corporate card facility.

Better security:

The transactions made using corporate credit cards are in a highly secured payment environment that is hard to jeopardise. Also, it is easy to report any theft or loss of a card. This creates an additional layer of security and reduces the risk of fraud. 

Helps foster an expense control culture: 

Corporate credit cards are a great way to empower your employees. Moreover, the entire process of using personal funds for business expenses and waiting for the amount to get reimbursed gets eliminated. Additionally, it also makes accounting easier by providing details of each transaction and expenditure. Your employees won’t have to wait for unnecessary approvals to make essential business purchases. This further speeds up day-to-day operations and streamlines various projects. 

Better credit score

A corporate credit card helps build your company’s credit score. This allows you to get cheaper capital in the future.

 

Get your RazorpayX Corporate Credit Card

RazorpayX, an end-to-end business banking platform, has the best in class corporate cards for your startup. You can avail an instantly approved card that offers simplified payments and superior expense management exclusively for Razorpay users.  Here are a few reasons why you must choose RazorpayX Corporate Cards. 

  • RazorpayX Corporate Cards offer immense flexibility with up to 50 days of interest-free credit period
  • You can use this universally accepted card to make payments towards Google Ads, AWS, Facebook Ads and so much more
  • You can get credit based on the real-time performance of your business. A high credit score is not necessary 
  • You can get Add-on Cards for your employees and set expenditure limits so that things never get out of hand 
  • RazorpayX Corporate Cards are equipped with dynamic credit limits, auto-repayment features and a whole array of curated benefits

Takeaway

Lately, many startups have found value in using a corporate credit card. With corporate credit cards, you can set limits to the expense amount, maintain compliance and save yourself from the manual labour of expense reconciliation. So what are you waiting for?

 

The RazorpayX Corporate Cards are developed in association with SBM India, one of the biggest banks in the APAC region.

 

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Ashmita Roy
Author Ashmita Roy

Ashmita Roy is a Content Marketer at Razorpay. When she’s not working, you can find her strumming her guitar or writing poetry. Dislikes writing about herself in third person, but can be convinced to do so via pizza or cheesecakes.

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