Although it may not be immediately apparent, there are significant differences between corporate credit cards and business credit cards. A corporate credit card issuer takes into consideration a different set of conditions than those of a business or personal credit card issuer. In this article, we go over the types of metrics considered by an issuer of corporate credit cards.
1. Company Revenue
Corporate credit cards are typically reserved for companies with larger revenue streams. Although the exact amount of revenue required to qualify for corporate credit card services varies among issuers, it’s safe to conclude that the cards are designed for multi-million dollar companies. Subsequently, corporate card users are usually expected to charge more than $250,000 per year on their accounts.
Liability for charges made on corporate credit cards customarily lies with the corporation rather than the company principal or employees. The cards do not usually require a personal guarantor as eligibility is dependent upon the company’s financial records and business credit rating. Therefore, card payments are the responsibility of the corporation rather than any individual.
3. Credit Rating Inquiries
When assessing an application, the corporate credit card issuer evaluates the credit rating, history and financial health of the business rather than the company principals or its employees. Consequently, corporate credit card applications will not generate inquiries into personal credit ratings or affect their scores.
4. Repayment Terms
Balances owing on corporate cards must be repaid in full by the repayment date. Failure to do so results in late payment penalties and interest fees. Business and personal credit cards, on the other hand, allow partial balance repayments. Although interest charges are incurred, there are no other penalties and fees as long as the minimum payment is made.
5. Customer Service
A perk of corporate credit cards is having a dedicated customer service representative assigned to the account. This can help administrators manage payments, improve card allocation strategies or quickly resolve any problems with the system. Having a support system that is familiar with the account can make problem solving more efficient.
The Emburse Expense Management System
Emburse now offers credit cards with a range of invoicing and settlement options. For more information on Emburse’s full credit offering, get in touch for a free demo today.