What are Commercial and Corporate Credit Cards?

As companies grow and expand, tracking payments, controlling spending, and managing reimbursements can become increasingly complex. The easiest way to do this is to use a Commercial or Corporate Credit Card. Let us explore what Commercial and Corporate Credit Cards are and the benefits they offer to modern businesses.

What is a Commercial Credit Card?

A Commercial Credit Card is a type of credit card issued to businesses rather than individuals. Small and mid-sized enterprises use these cards to cover business-related expenses such as travel, office supplies, client entertainment, and more. Commercial Credit Cards are issued in the name of the business, although they are often tied to a specific employee or business owner. The repayment responsibility usually lies with the company, not the individual cardholder.

What is a Corporate Credit Card?

A Corporate Credit Card is similar in purpose to a Commercial Credit Card but is generally issued to larger companies with significant annual revenues and well-established credit histories. These cards are distributed to multiple employees within an organisation for authorised business spending. Corporate cards come with features such as centralised billing, spending limits per card, and integration with accounting or ERP systems.

How do these Credit Cards Work?

Both Commercial and Corporate Credit Cards function similarly to Personal Credit Cards in terms of usage. However, they differ in the following aspects:

• Banks provide multiple cards under the company's account, each with a preset credit limit per user or department.
• All transactions and payments can be monitored in real-time through a centralised dashboard.
• Businesses either pay the outstanding amount in full or use the balance according to the agreed-upon credit terms.
• Many Credit Cards come with rewards such as cashback on travel, discounts on office supplies or access to airport lounges.

Benefits of Commercial and Corporate Credit Cards

Better expense management

Track all business-related expenses through one centralised account. This enhances transparency and facilitates faster and easier reconciliation.

Reduced paperwork

Use of Commercial and Corporate Credit Card eliminates the need for employee reimbursements and manual expense reporting. Most cards offer digital expense reports.

Rewards and perks

Earn points, cashback, or air miles for routine business purchases. These rewards can be reinvested into the business or used to offset travel costs.

Security

Set custom spending limits, restrict specific categories of spending, and monitor transactions in real time to prevent misuse.

Conclusion

Commercial and Corporate Credit Cards help manage business expenses. These cards make it easier to track spending, control employee purchases, and improve cash management. They also offer additional benefits, including rewards, discounts, and enhanced security. If you're looking for a smart way to handle your business payments, getting a Business Credit Card could be a great choice.