Corporate credit cards are an essential tool for businesses, providing a convenient way to manage company expenses without burdening employees with out-of-pocket payments. Unlike personal credit cards, corporate cards come with additional features that cater specifically to business needs, such as expense tracking, rewards programs, and travel perks. In Singapore, companies have access to various types of corporate credit cards, each designed to suit different operational requirements, whether it’s securing cashback, managing fuel costs, or controlling travel expenses. In this article, weβll explore the different types of corporate credit cards available and how they can benefit your business.
What is a corporate credit card?
A corporate credit card is a credit card issued to companies. This is different from a personal credit card where the business owner and the employees arenβt legally responsible for corporate credit cards and their expenses.Β
A corporate credit card is issued to employees to make business expenses without having to reimburse the money to the employee. Using a corporate credit card for small businesses can be also beneficial as providers often offer rewards such as cashback and other perks that will help your business spend more efficiently.Β
What are the various different types of corporate credit cards?
1. Secured corporate credit card:
When you apply for a secure corporate credit card, you need to provide a collateral ( a form of security against the money that you have been provided) which will reduce the risk of the issuers. These are the only options that businesses have: they have a small credit history or are struggling to acquire an unsecured card.Β
2. Cashback/rewards points credit card:
With these cards, companies are able to earn cashback or rewards points every time they spend money. These rewards can then be reinvested in the business or can be distributed among the employees as an incentive.
3. Corporate charge card:
Corporate charge cards function similar to a credit card but you are required to pay the full balance on a monthly basis. They function the same way that a prepaid card works. This is beneficial to companies that want to once again control their spendings and avoid interest charges.
4. Travel rewards corporate card
This card is specifically designed for companies with frequent travelling expenses. These cards offer travel related rewards such as hotel points. They significantly reduce the travel cost of employees. Business executives who tend to travel a lot opt for these types of credit cards.Β
5. Fuel cards:
Fuel cards are meant for businesses that have a fleet of vehicles. They provide discounts or rewards every time you fill fuel in your vehicle. This helps you manage fuel expenses more efficiently. This can be used by food delivery companies, logistics and other similar transport based service companies.Β
How do corporate credit card work in Singapore:Β
At its core, a corporate credit card operates much like a personal credit or debit card, allowing you to make payments in-store or online. However, corporate credit cards offer additional features specifically designed for business needs.Β
For instance, most corporate cards in Singapore come with an integrated expense management dashboard, giving you a clear view of all transactions and allowing you to control the usage of multiple cards.Β
These cards also empower employees to make purchases on behalf of your company. Once the cards are issued to your employees, you can monitor their spending closely. At the end of each billing cycle, your business is responsible for settling the total credit balance, ensuring better cash flow management for your organisation.Β
With several corporate credit card providers available in Singapore, businesses have access to tailored solutions that meet their specific operational and financial needs.
Conclusion
Corporate credit cards offer businesses in Singapore a flexible and efficient way to manage expenses, streamline operations, and improve cash flow. Whether your company needs a secured card for building credit, a cashback option for rewards, or a travel card for frequent trips, there are solutions tailored to various business needs. With added features like expense management dashboards and control over employee spending, corporate cards can enhance financial oversight. By choosing the right type of corporate credit card, your business can not only simplify transactions but also take advantage of perks that drive greater savings and efficiency.
