Corporate Credit Card: How It Helps Small and Medium Business during a Crisis

Corporate Credit Card: How It Helps Small and Medium Business during a Crisis

Corporate credit cards are issued on behalf of companies to employees, which they can use to cover expenses incurred for business purposes like hotel stays, travel, etc. However, unlike personal credit cards, the corporate credit card bill is paid by the organisation, which leaves an employee’s credit score unaffected. Additionally, a company credit card carries lesser risks for the owners of the company. Moreover, corporate credit cards come with several perks and benefits for the cardholder.

Nonetheless, businesses need to meet specific requirements to apply for a corporate credit card. One such instance includes a minimum annual turnover of Rs 10 crore. In that case, Small and medium-sized businesses with less annual turnover can opt for business credit cards instead of a corporate credit card.

These credit cards can come in handy in several ways for small and medium businesses, especially during a crisis. The benefits offered by these cards include –

  1. Emergency loan – With a business credit card, small and medium businesses can apply for emergency loans in times of crisis. They can convert their credit card’s unutilised limit to avail a loan without paying any interest for up to 90 days if availed wisely. Moreover, the procedure to apply for a loan is simple, and one will only be charged nominal processing fees.
  2. Easy EMI conversion – Businesses can purchase machinery and raw materials required using these credit cards. They can easily repay the due amount by converting it into EMIs. In this way, the financial burden of business is deferred, while at the same time, new inventory enhances its performance.
  3. Interest-free ATM withdrawal – There can be instances, for example, during a cash crunch, when a business requires emergency liquid funds. These credit cards thus allow an individual to withdraw cash from an ATM without charging any interest for up to 50 days. Such a facility can help small and medium businesses big time.
  4. Reward points – Credit cards, like the Bajaj Finserv RBL Bank SuperCard, also come with attractive reward points that can be advantageous for a small or medium-sized business. These credit card reward points can be accumulated via purchases made strategically, like from partner stores. Some credit cards offer reward points on joining as well in the form of a welcome bonus.

 

Cardholders can also earn reward points after reaching spending milestones. Businesses can redeem these reward points to avail discounts, gift cards, cash backs, and the likes.

Apart from reward points, the card-issuing NBFC also provides pre-approved offers to cardholders. It makes the credit card application process efficient and hassle-free. Alongside, these offers can be availed on other financial products also, like personal loans and business loans. One can check their pre-approved offers by entering information like their name and contact number.

 

  1. Security features – Often, small and medium-sized businesses need to carry out online transactions. But, with the increasing amount of online transactions, the number of fraudulent activities like identity theft, password theft, phishing, and others are also on the rise.

 

However, these can be very damaging to a business. Consequently, specific business credit cards come with strong security features like in-hand security and zero fraud liability cover to protect the user from extensive losses. Nonetheless, one should be aware of the types of credit card frauds and how to avoid them.

Now that you know how the instrument can help small or medium-sized business, you can maximize advantages like credit card reward points by making a comparison. Once compared, proceed to apply for your suitable card. Below is explained the application process you can follow.

Application process

One can easily apply for a business credit card online by following the below-mentioned steps –

  • Visit the credit card issuer’s official website.
  • Browse to the credit card section to access the online application form.
  • Fill up the application form with all the required information.
  • Submit it along with the documents.
  • Pay the joining fee via any of the available online payment options.

To get the most out of their credit card, one should use it wisely. For corporate credit cards and any other credit instrument, it is essential to make bill payments in time to maintain creditworthiness. Therefore, you should also consider some convenient options to pay your credit card bills easily. Additionally, you must remember to pay off the bill within the due date to avoid penalties.

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