Top 10 Banks Offering Corporate Credit Cards in Singapore That Make Tracking Business-Related Transactions Easier

How to Get Reliable Corporate Credit Cards That Improves and Secures Your Business Expenditure

Corporate credit cards are cards issued by the company directors and owners to certain employees that such employees can use to pay for business-related expenses, such as travel tickets and hotel bookings for business trips. This removes the need for the employees to use their personal cash or credit card, making it easier to track business expenditures and separate personal and business expenses.

Like a personal credit card or small business credit card, a corporate credit card can be used to make a variety of purchases. Transactions made using the cards will garner reward points that the company can redeem or use for other payments. At the end of each monthly billing cycle, the company must pay the issuing bank the accrued amount spent using the credit card. Failure to do so will negatively affect the corporation’s credit score.

Using a corporate credit card has several attractive features that are not available to using cards issued to small business owners. Not only will you be able to issue employee cards without assuming personal liability, but they also offer access to accounting software and services designed to help your business manage its line of credit. Furthermore, some vendors and retailers also give discounts to corporate credit card holders.

Business Credit Card vs Corporate Credit Card

Business and corporate credit cards are both excellent sources of immediate financing for business expenses. On top of providing corporations and their representatives with convenient access to necessary funds, these cards offer rewards programs and exclusive perks, and even features such as expenditure management software integration.

Understanding the distinctions between business and corporate credit cards will help entrepreneurs select which card type is most suitable for their company. Each of these have specific requirements to be eligible.

Business Credit Card

With a business credit card, small business owners and their employees can conveniently pay for expenses related to the company, ranging from office items to travel expenses for business trips. Compared to personal credit cards, business credit cards are given higher lines of credit and more generous reward programmes since small businesses spend significantly more amounts on purchases.

Business cards are available to large and small businesses, regardless of their number of employees or revenue. Business cards are even available to single proprietorship businesses, gig workers and freelancers. Obtaining one is usually uncomplicated but requires a check on your credits and proof that you own the business in question. It's also important to note that these types of credit cards require a personal guarantee from their user, so if something should occur, such as missed payments, the matter should be settled by the individual issued the card, not the company.

Corporate Credit Card

Using business credit cards is suitable for small businesses. However, high-earning companies – those with multi-million annual revenues – are better suited to use corporate cards, which allow for more authorised employee holders than regular business cards. Depending on the company’s number of employees, rate of expenditures, and its revenue, the issuing bank will advise how many employees can be cardholders and what the credit limit would be for each card.

Applying for a corporate credit card differs from applying for a business credit card. Eligibility requirements are more rigorous and limited to S-Corporations, C-corporations, and some LLCs with good financial standing. Spending minimum amounts might also be necessary for exchange for the company’s liability instead of its owner's on payments; if the corporation becomes insolvent without paying its dues, it will not reflect negatively against the proprietor.

As a business grows, it will unavoidably have to make more expenditures and be required to allow more employees to make expenses, making it more difficult for the company to track and manage its finances. Using corporate credit cards will remove this difficulty as it centralises business spending and even comes with advanced accounting tools. Thus, for corporations with multi-million annual revenue and positive credit history, it is highly advisable to use corporate credit cards.

Benefits of Using Corporate Credit Cards

Businesses need help with a balancing act when handling multiple types of expenses simultaneously. One misstep could disrupt your business operations and prevent you from accessing substantial cost-saving opportunities. Fortunately, thanks to corporate credit cards, tracking employee expenditures has become significantly more straightforward.

Here are some primary advantages that come with using a company-issued credit card:

Control of Expenses

Corporate cards can be utilised in a variety of ways. They can be used for one-time payments, recurring bills, or travel expenses, among other purposes. Issuing corporate credit cards to your employees can help the accounting department prevent issues of unchecked or dubious spending, as well as unbilled expenses. To minimize cases of overspending, each cardholder will be assigned their own credit limit. Furthermore, company directors can limit transactions to certain vendors, services and locations. For example, a merchant lock mechanism can be put in place to prohibit purchases from particular merchants that the company has identified.

Secure Transactions

A corporate-issued credit card provides a layer of security that a personal credit card simply does not have. Corporate credit cards have built-in safeguards designed to detect fraudulent activity, theft, and mismanagement. In addition, they offer added protection if the card is ever lost or stolen. With these integrated features in place, corporate credit cards ensure ultimate peace of mind when used for business purposes.

For instance, some corporate credit cards come with travel insurance coverage, employee misuse protection, complimentary travel insurance, and enhanced cash flow benefits. Using these cards can also deter potential abuse that may stem from providing an employee financial autonomy. Rather than using paper receipts for billing purposes, which can be manipulated, companies can simply check the card statements to safeguard against fraudulent activities.

Expense Management

With corporate credit cards, the accounting department no longer has to manually review each item on the billing statement and record it again in their expense report. Every issued credit card can be conveniently integrated into the company's expense management system, allowing employees, managers and auditors to quickly access all transactions for review. This simplifies the company’s entire accounting process. With this tool, payments made through the credit cards are automatically recorded in the accounting system, reducing potential human errors while also automating payouts and streamlining contactless transactions.

Companies can also use expense management apps to match expenditures with missing details to their exact transactions. This process involves cross-referencing the purchase amount and date with a pre-arranged set of criteria to match each transaction with its associated cost. 

Use of Multiple Cards

For large corporations, using multiple corporate cards is the perfect solution for allowing different employees to purchase items needed for operations without relying on cash. With unlimited cards, no two members of staff need ever share one – unlimited physical or virtual cards are available so that every employee has access to company funds when they travel or buy on behalf of the company.

By using corporate credit cards, corporations remove the need for employees to pay for business-related expenses out of their own pockets. This also eliminates the tedious reimbursement process, which traditionally takes a lot of time. In addition, using corporate credit cards provides a solution to the need for foreign currency conversions of large sums of money when an employee has to go abroad for a business assignment.

Rewards and Perks

The most popular reward for using corporate credits cards is the yearly cashback, which ranges from 1% to up to 5%, depending on the issuing bank. No matter what type of transactions were made, these rebates can be incredibly beneficial to any business looking for extra savings.

Beyond the typical dining, fuel, and shopping discounts associated with using a corporate credit card, cardholders can also take advantage of complimentary air miles and access to airport lounge areas and exclusive concierge services. Granted, these benefits usually require an annual fee between $150 to $450; however, depending on your provider's agreement, this charge could be waived. Furthermore, some corporate cards connected to an expense tracking system can benefit from additional cash rebate, waiving of monthly fees, lower annual fee, and competitive foreign-exchange rates.

Ease of Use

Companies can better track expenses of employees assigned overseas that use a business or corporate card. This is also a practical and secure option for the employee as they can pay for any purchase simply by using their card, which means that they no longer have to always carry large sums of money in their person or have to constantly figure out exchange rates for local currency when they're abroad. Corporate credit cards that support both Visa and MasterCard are accepted nearly everywhere, making them the perfect option for any traveller's expenses.

The reimbursement process for frequently travelling employees can be a significant hassle, not only for the employee but also for the company. Using corporate cards makes the process much simpler for employees who regularly has to travel or make multiple expenditures. It removes the problem for the employees of having to use their personal money or meticulously collecting receipts that have to be submitted to the accounting department later on. Instead, they have ready access to money whenever they need to make a purchase and will no longer have to apply for reimbursement.

How to Apply for Corporate Credit Cards

Acquiring a corporate credit card requires meeting the specific criteria set by the issuing bank. The two most important qualifications considered by central banks and other financial institutions are eligibility and one's credit score.

Eligibility Requirements

To apply for corporate cards, you must provide various documents, such as your business registration information and financial records:

• As a business, registering with ACRA and obtaining a UEN number are mandatory in applying for a credit card
• Your company must have at least 15 employees; most major card providers will only issue these cards to companies with more than 15 people on their payroll
• All employees must be at least 21 years old
• Aside from checking the credit score, issuers may also require the business's bank statements and previous repayment history
• Your company must have an annual turnover of at least $4 million and expenses totalling no less than $250,000 per year
• Your company is also required to have a minimum net worth of about $50,000 depending on your number of years in operation
• Singaporeans and Permanent Residents as well as Foreign Employees must make a specified minimum annual income (usually at $30,000) to be eligible for corporate liability and joint/several liability
• For personal liability, Singaporeans/PR must possess a specified minimum annual income (usually $30,000) while foreigners should have higher earnings (generally at $42,000)
• Annual fee per card (excluding GST)

Credit Score

After checking that your company is qualified, the next phase involves assessing your credit score. The biggest factor the bank will look at is your company’s credit rating, but they will also routinely check the credit standing of the individual who will be assigned with the card.

Once all requirements have been submitted, it will take the issuing bank about two weeks to review the application. During this time, your office may be contacted to provide additional requirements or to clarify certain details. It’s advisable to get the contact details of the bank employee processing your application so that you can quickly follow-up regarding its status.

Liability and Usage

It is extremely important to understand liability and usage terms of a corporate credit card. There are two types of liabilities: sole corporate liability and individual liability. If the corporate credit card is issued under corporate liability, the company must directly pay the expenses accrued under the card at each billing period, as well as its annual fee. Meanwhile, responsibility for an individual liability card lies on the cardholding employee, who must file for reimbursement from the employer. To maintain proper record-keeping and accuracy in their accounts, the business owner should always closely monitor related expenses.

A corporate credit card is similar to a debit card in that the company pre-loads each card with money from its bank account. Additionally, the best corporate credit cards have smart features, including merchant lock (which prevents transactions with unauthorized vendors), analytics tools such as a policy compliance monitor, and an expense tracker that comes with complimentary reports.

What to Look for in a Corporate Credit Card Provider

Using a corporate credit card puts your business closer to financial harmony. To decide which credit card works best for your company, it is important to detail what would typically be the items or services purchased using the cards. Which vendors or merchants are you most likely to transact with? Will some employees need cards for business travel expenses? Answering these questions can help ensure you have chosen a suitable corporate card.

Additionally, consider these factors when choosing an issuing bank:

Expense Management

When selecting the right corporate card provider and card type for your business, it's essential to consider its built-in expense management tools. After all, that is the primary reason why we use company cards – to monitor and track expenses more efficiently. Most providers generate a summary of transactions on either a monthly, quarterly or yearly basis, while certain ones also send immediate notifications when an irregular transaction occurs.

Software Integration

You corporate credit cards can be integrated with an accounting software to make the relationship between the accounting department and the employees more efficient. It can also be incorporated with other expense management systems for increased data accuracy of employee expenses.

Fees and Other Charges

When selecting a corporate card, look into the payment plans of different providers and pick one that meets your requirements. Inquire about its annual fee, extended payment terms, the number of free transactions you can make before the issuer charges a fee, as well as add-on or any possible hidden fees.

Type of Card

Aside from the traditional physical cards, some banks today also issue virtual cards. The benefit of using physical cards is that they often come packaged with free health or free travel insurance. Meanwhile, virtual cards provide advanced security in online payments, as well as improved control of card usage by using an app.

Security

It’s important that the issuing bank safeguard personal information while establishing clear company policies outlining employee spending terms. Most corporate credit cards today use a two-factor authentication and user identity verification as part of their security system. Many organisations have also adopted a 3-D Secure mode, a way to prevent fraud by including an extra layer of safety that requires a one-time password obtained through SMS or approval from a mobile device.

Multi-Currency Wallet

For large companies with transactions across the world, it's important to issue employees abroad with corporate credit cards that can automatically convert foreign currency. This can help your company save significant amounts of money from reduced remittance fees, transfer costs and more. Additionally, noting that credit cards usually take longer when making payments abroad, opting for a corporate credit card with short waiting time will ensure faster transactions.

Save time with reimbursements, cheques, and petty cash. Instead, equip your employees with corporate credit cards with proactive controls for every cardholder. This will allow you to easily set limits, load funds for approved corporate expenses, and track spending without worrying about reimbursement.

Check out the best business credit cards in Singapore to determine your eligibility for an application.