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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Hiring tax credits are provided to companies by both the state of California as well as the federal government.  The federal program is called WOTC, or the Work Opportunity Tax Credit.  Your corporation can earn these federal hiring credits when you employ people from certain groups.  These can include qualified disabled veterans and veterans who are eligible for food stamps, those who were laid off or are being threatened with a lay off, people of Native American or Pacific Islander descent, certain summer youth hires and ex-felons, and those who are eligible for or receive SSI, temporary assistance for needy families or food stamps.  When your corporation hires people from any of these recognized groups, your company may then receive federal hiring credits ranging from $2,400 to $4,800, based in part on the wage they earn as well as to which group they belong.  Many times, these federal hiring credits go unused simply because businesses do not realize that they qualify for them, so do ask a CPA familiar with these tax benefits how they may apply to your taxes.  

In addition to federal hiring credits, your corporation may also be eligible for state-based hiring tax credits.  These can be connected to enterprise zone credits as well.  California has forty-two enterprise zones, where businesses are encouraged by the state to set up shop and hire people through the use of these state tax credits.  Employees of your company within any of the above mentioned groups may also qualify your corporation to receive up to an additional $13,000 per employee annually.

Other corporate credits may be found in vehicle tax incentives.  When your company in an enterprise zone makes the switch to hybrid or diesel vehicles, you can earn tax credits for doing your part to protect the environment on the job.  

A consultation with a CPA is the best way to make the most of these and other California corporate tax credits this filing season.

But the choice may not really be as easy as it may seem. It can be an embarrassment with such attractive choices available. Among the important factors to consider are the actual purposes for which you need the card. This should be your primary consideration. And this is the main way to determine how one card may suit some people and may not suit others. Cards such as the corporate credit card offer higher spending limits which obviously benefit the high-spenders. At the same time, they also offer a lot of rewards and discount offers to lure people into large spending. You can have attractive offers on different programs that may include things, such as on airlines, hotels, rental cars and restaurants.

This is as attractive as it gets but, of course, this may not really suit the middle-class pockets. While purchasing a credit card, you ought to consider other important points as well, such as lines of credit, protection features as from fraud and theft, annual fees, rewards programs, gasoline rebates, cash-back rewards, savings on office supplies and so on.

These days, easy purchase of credit card has been further facilitated by the system of online application forms. You can fill in the required details in the form and, after approval in a few minutes, you can receive the card via post at the address that you mention in the form.

For a person just starting his own company, there are obvious advantages and the ability to have better financial control. Fresh business start-ups are probably in more need as the initial start up of any business is the most costly time.

However, this is something you may want to talk to your financial advisor about or the bank representative. Increasing numbers of applicants now do it online as it is usually quicker and business professionals are usually busy people that need to save time wherever possible. Gone are the days when you needed to go to your bank about any financial matter when so much of it is now carried out online. Waiting in queues to see your banking representative is a thing of the past with today’s services available over the internet.

When you apply business credit card online, all you have to do is to select the business credit card option that would perfectly suit your small business or corporate credit requirements right from the comforts of your home or office. Aside from offering safe, secured, and simple processes that are designed help you take care of your starting business, most business credit cards offer online features for the convenience of the business credit card holder like payments and reporting.

Expect to have a decent start-up package of no fees, finance charges or a set spending limit in an effort to make you more comfortable about using the business credit card. Of course other incentives to use the card like rewards programs which help towards travel and goods are also part of the package.

Credit for businesses doesn’t always come easily but some banks are prepared to increase the credit on a business credit card to one hundred thousands dollars or more and with a preferential annual percentage rate you can’t go wrong. For a set period the customer may also have the benefit from a zero fee checking account as well. As with standard credit cards, most credit card companies have a number of special incentives to attract new business users including no annual fee plus additional benefits like improved savings rates for example.

If you know exactly what your business needs then it should be relatively simple to find a business credit card that suits your criteria. The more flexible your business credit card is the better for you but try to match your needs first. There are many comparison sites available that can help list the benefits of all the cards currently available so it is easy to find the right one.

Good Luck!

Sincerely,

Ilya Bodner
Small Business Owner
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