Business credit cards are one of the easiest types of business financing to qualify for. Eligibility largely depends on your personal credit history, which can make business credit cards for new businesses and very small companies more accessible than traditional business loans. Amex’s corporate card fees are quite a bit heftier than other corporate credit cards.
What If You Don’t Qualify For A Corporate Credit Card?
Please view our advertising policy and product review methodology for more information. A corporate credit card is a card tied to a corporate account rather than to an individual. That means the business entity, not the business owner, is legally responsible for all charges made on the card. As a company generates more revenue for a bank with frequent use of a corporate credit card, the bank might enhance the earnings credit rate for a company to help lower their overall banking costs. Employees receive individual bills and are responsible for directly paying the card issuer for any charges, all while filing an expense report to get reimbursement from their employer.
Capital One Spark 2X Miles
Most importantly, great value could be unlocked with a rewards program, cash back rebate or earnings credit rate. It is important for any company to engage with its trusted commercial bank relationship manager, treasury management specialist or dedicated bank client service professional when evaluating if corporate credit cards could benefit a business. Corporate cards can be issued by most traditional banks, but there’s also a growing number of fintech companies that offer corporate cards.
- The main differences between them revolve around reward structure and card repayment structure.
- These rewards are often credited back to the main company account, though some corporations allow employees to keep the points they earn from corporate card spending.
- The digital natives have more payment options than any generation before them, and they’ve embraced electronic payments and alternative credit methods like digital wallets and buy-now-pay-later apps.
- The offers and/or promotions mentioned above may have changed, expired, or are no longer available.
- The card offers other benefits as well, like virtual cards, a flexible credit line of up to $5 million, and standard security features.
- The offers that appear on this site are from companies from which CreditCards.com receives compensation.
Generally, you do need a business credit score in order to qualify for a business credit card. Without a business credit score, the traditional path is to get a secured business credit card that requires a security deposit until you’ve built your credit up enough to qualify for business credit cards with better rates and rewards. Business credit cards allow small business owners (and their employees) to make business purchases while keeping their business expenses separate from personal expenses. Capital One’s Spark Miles is an easy and practical way for frequent business travelers to earn miles, making this one of the best business credit cards for travel rewards that doesn’t come with a massive annual fee. Cardholders nab two miles for every dollar spent on all purchases, with no minimums and no expiration dates.
Expensify subscriptions normally range from $0/month to $9/user/month, with more features offered with the pricier plan. However, Expensify now offers to waive your subscription fee if you meet a minimum monthly card spend. You’ll also encounter fees if you opt for Ramp Flex, a program that lets you delay paying for a purchase for 30, 60, or 90 days. This program is particularly enticing and very rare for a corporate card (the only other card on the list that does this is Rho).
Business credit cards vs. corporate credit cards
Conversely, on corporate what is corporate credit card cards, the company usually keeps the rewards — and usually, the earning rates aren’t as lucrative as you’ll find on many small-business cards. Corporate credit cards tend to be available to companies with a minimum of $4 million in annual revenues, 15 or more card users, and expected charges of at least $250,000 per year. Eligibility is also usually dependent on the business having a high credit score and good financial health, and being structured and registered as a C corporation (C corp) or an S corporation (S corp).
Business Credit Cards
Corporate credit cards are issued based on the business’ financial health and typically do not require a personal guarantee. This means that if the company goes under without having paid its bills – during an unforeseen economic crisis, for example – the business owner is not held responsible. Business cards, on the other hand, usually require a personal guarantee or shared liability between business and owner. When comparing different cards, we consider many data points, including the relative cost of standard or extra fees, the range and value of benefits and perks offered, APR, availability, and credit score requirements. Our lists of the best cards include only those we’ve deemed worthwhile from multiple vantage points, and share qualities such as widespread accessibility, low APR, flexible rewards, and additional perks like employee cards.
Corporate credit card issuers might also look at a company’s business credit score, recent audited financial statements, tax info, and more. Company guidelines can help businesses better manage employee expenses, but it’s also important to make sure employees know the rules to prevent misunderstandings and unauthorized charges. It’s not uncommon for businesses to develop a corporate credit card agreement for employees that details the company’s rules and expectations for corporate credit card usage. If you’ve decided that a corporate card is the right approach for your business, check out the best corporate credit cards for businesses. If you have a card in mind already, we have a guide on how to apply for a corporate credit card, plus other resources like how to create an effective corporate card policy and more.