At Benefit.X, we can relate to these pain points. Being a startup ourselves, we faced similar rejections when attempting to secure credit cards for our business needs. Therefore, in collaboration with MatchMove, we have developed a corporate card for small businesses that works as a classic credit card sans the hidden fees and tedious paperwork. Moreover, we have added a smart budgeting feature that allows you to sync business expenditures with claims, payroll and procurement in one smart card within an integrated mobile platform.
With the Benefit.X Corporate Card, you can leave credit worries behind and focus on strengthening your business. Read on to learn more about corporate cards and how Benefit.X can benefit you.
Why do you need a corporate card?
Cards are essential when it comes to making online purchases such as software subscriptions. They are also useful on business trips when sometimes it’s just easier to swipe a card than carrying around foreign currencies.
Thus, owning a corporate card just makes running a company way more efficient.
Now you may be wondering, can’t I just make business purchases with my personal credit or debit card and save myself the trouble? Well, we’re here to tell you that it’s ideal to keep your work and personal expenditures separate, and here’s why:
With a corporate card, you can keep your personal credit report from being influenced by your business activities. This ensures that regardless of how well your business is doing, there is always this buffer between your personal and business assets.
Using a corporate card also offers you fraud and theft protection. Whenever you use your debit card for purchases, you increase the chances of theft as the card is directly connected to your bank account. Once your debit card security is compromised, you are at risk of losing a huge chunk of not only business capital, but possibly personal savings as well. With a corporate card, you have more control of the situation as you can monitor charges and contain threats through card deactivation, all without involving your bank accounts. The spending limit on the card also puts a cap on the extent of financial damage inflicted on your company.
2. Resource Management
While using a corporate card can stop it from affecting your personal credit report, it actually helps your business build its own credit profile. As your business grows and monthly bills are paid consistently, you will be able to establish a good credit history for your company. In the future, when your business requires additional resources or working capital, you will be able to acquire loans and leases more smoothly.
If you are a bigger company and have employees working under you, having corporate cards becomes even more important. This is because with more people, expense management becomes increasingly complicated. Without corporate cards, employees will have to use their personal cards for company expenses and proceed to submit claims. If claim reimbursements are released late, this may result in the discontentment among employees. Furthermore, employees may be unwilling to foot the bill of large purchases in fear that they may not get the money back anytime soon. This holds up business processes and hinders growth.
However, with corporate cards, you are able to issue employee cards with set spending limits and monitor expenses more conveniently. This also means that you can easily track the total costs incurred by your business each month and analyse how each employee or department utilises the company funds. Hence, this facilitates resource management as you will be in a better position to set budgets and allocate resources to areas that need it most.
3. Higher Credit Limits and Perks
The final benefits to be discussed are the higher credit limits and perks offered by corporate cards.
Large sums of money are required to keep a business afloat, sometimes even exceeding the capability of your personal credit or debit card. Corporate cards generally have a higher credit limit*, granting you the cash flow to spend on business necessities. Now, investing a lot of money into your business means that you hope to reap the fruits of your labour. Some of these “fruits” are the bonus features that you may be missing out on. Without a corporate card, money poured into your business is just money spent. However, with the card, you could be entitled to perks such as a complimentary Human Resource Management System (HRMS) that would otherwise be an additional cost for your business.
As you can see, corporate cards play a vital role in enhancing business operations. Hence, for small businesses who have not signed up for one, it’s time to jump on the bandwagon.
*subjected to credit score and deposit placed
Benefit.X makes corporate cards readily accessible to small businesses through our proprietary credit scoring engine. We do not engage in the stiff, traditional way of conducting credit assessment on companies. Instead, credit history, employee statistics, management’s conscientiousness and connectedness are some of the factors which play a part in our credit scoring process. This lowers the barriers to entry for small businesses in their application for corporate credit. Anyone can apply for a Benefit.X corporate card; freelancers, sole proprietors and private limited companies, all are welcome.
Besides the credit budgeting function, our HRMS also supports claims, leave and payroll management of all the staff in your company. These tools are self-administered, allowing your employees to take charge of their own HR entitlements. Hence, by applying for a Benefit.X corporate card, you can optimise both your budgeting and HR processes. Furthermore, the application process is simple, applicants only need to sign up for a Benefit.X account with their valid Business Registration Number.
As a small business, you fight to rise above the rest despite facing fund and manpower limitations. Streamlining essential processes is the way to go if you wish to divert focus to scaling your business. Benefit.X has the tools, so let us serve you on this exciting journey.