Corporate Credit Cards
Corporates are a class apart. They have their special needs and preferences and so cater to these came out the concept of Corporate Cards. The simple idea that lies behind corporate credit card is that business is a separate entity; hence, it should have a separate credit card that matches its requirements. Corporate credit cards aim at administrating companies and employees expenditure separately.
Why go for a corporate credit card?
The benefits provided by a corporate credit card are manifold.
1. It augments the performance of payment procedures.
2. It simplifies clerical procedures involved in purchasing and payments.
3. Helps to run effective cash management.
4. Reduces overall purchasing costs
5. Corporate credit card can be applied for online. It involves less paper work.
Other than being advantageous to the company it also offers benefit to the suppliers by-
1. The possibility of instant payment.
2. Improving the flow of the cash by cutting down the cost of invoices and collections.
Benefits to the company:
Company recognition and branding:
Certain corporate cards give you the option of having the company logo with the photograph and signature of employee imprinted on the card. This gives a supreme recognition to the company and also strengthens the brand identity.
Management Information system:
It refers to monthly information system which is basically a monthly report send to your company regarding all the expenses along with the summary report. It also provides itemized detail about charges and payment made. This in turn reduces the charges associated with the expense tracking. In addition, it also reduces your working capital requirement by providing a reasonable credit period. To sum it all the report helps you for –
1. Stream line expense control.
2. Analyze spending pattern.
3. Forecasting future need.
Individual billing statement:
Apart from providing consolidated report. Corporate credit cards provide Individual billing statement for each card. This gives month wise report for all purchases, cash advances, charges and outstanding amounts in the case of each employee.
Consolidated Company statement:
This statement provides you with the details of the expenditure of each card member according to date, place, amount of expenditure and net amount payable by each card member. At the end it gives your company’s grand total.
Cost Saving:
The corporate card enhances the cash flow of the company. It significantly reduces the need for cash advances thereby decreasing the administrative cost involved with it. The employees are billed every month which again improves the cash flow.
The itemized details by MIS provide the saving opportunity with the supplier by supporting fact based negotiation. The corporate credit card bills are payable on receipt which inculcates financial discipline in the employees. This in turn eliminates the cost on interest.
Reduced administrative burden:
Corporate credit card reduces administrative burden to a large extend by reducing the paper work and providing a flexible billing and payment method. Not only, it gives you the option to see multiple billing and provides the access to a single vendor.
Benefits to employee:
Along with benefiting the company, the Corporate Credit Cards also gives many benefits to the employees such as –
1. Simplifying charging and accounting of business expenses.
2. Provides an attractive spending limit to employee.
3. Wide acceptance giving you the total ease on business travel.
4. Global customer assistance services.
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