Corporate Credit Card Definition
A corporate credit card is typically only available to large, multi-million dollar corporations that plan to charge more than a quarter of a million dollars per year to their account. In most cases, liability for charges made on a corporate card falls to the corporation itself and not the company principal or other individuals. Consequently, the issuance of a corporate account depends on the company’s financial documentation and credit rating, not those of a personal guarantor. An exception to this is the "individual liability corporate card" where each user is personally responsible for charges they make. A corporate card does not access a revolving line of credit meaning any outstanding balance must be paid in full by the payment due date.
What Are The Pros Of Corporate Credit Cards?
Corporate accounts are designed to scale with growing businesses and therefore work best for companies with dozens or hundreds of card users. Detailed expenditure tracking systems, usually backed by a dedicated support worker, are available to allow efficient monitoring and analysis of complex expense data. Corporate liability protects company principals and individuals in cases of rogue spending or company default.
Corporate Credit Cards Vs Business Credit Cards
Business credit cards are typically backed by a personal guarantor meaning that the guarantor is ultimately responsible for any charges made on the account. As opposed to corporate credit cards, business cards provide access a revolving line of credit. As long as the credit limit is not exceeded and the minimum monthly payments are made, an interest accruing balance can be carried forward indefinitely. Business credit card issuers do not normally provide a dedicated account support workers.