How to apply for a corporate credit card in India
Employees' payments are no longer solely dependent on reimbursement options. The days of collecting and painstakingly filing receipts are over.
Today, businesses have another flexible and easy-to-use payment option — corporate credit cards. Employees can use these for business travel expenses.
Or, the company can use them to manage monthly subscriptions and other online payments. And, it’s not just grown companies that can use them. Even self-employed entrepreneurs and small businesses can benefit from this offering.
For anyone who is looking on how to apply for a corporate credit card in India, it’s a good idea to go over the list of card providers and their eligibility requirements.
Depending on the chosen credit card company, the list of required documents might vary.
Certain documents like the ones listed below are mandatory and must be submitted by any type of business while applying for corporate credit cards in India.
Any valid, Indian government-issued identity card like Aadhar, driving license, voter ID, PAN card, or passport can be submitted. Based on the application type (online or offline), a physical or digital signature will also be required.
This signature is usually mapped to match the one on the ID you’re submitting, so ensure that the applying signatory is the same person in whose name the account is being opened (the authorized signatory in the case of the company).
Some institutions require that you submit additional proof for the mentioned address and date of birth/date of incorporation. In most cases, your submitted ID proof will work as dual proof.
However, in the situation that dual proof is required, some suitable options are a secondary school certificate (for age verification), Aadhar, PAN card, copy of an LIC policy, passport, or any other valid government-issued ID proof.
If your business is a tax-paying entity in India, you will be asked to provide the GST certificate. If you don’t have a copy of this certificate handy, then it’s not difficult to acquire. It can be downloaded from the online GST portal.
CIN is a unique registration number for your business that is assigned based on registration with the Ministry of Corporate Affairs (MCA), done through ROC (Registrars of Companies) in respective states.
This CIN needs to be provided to apply for corporate credit cards in India.
To prove the spending capacity of your business, you must submit the bank statements for the past six months.
The number of months might vary depending on the selected provider, but most prefer 6 months or a quarter at the very least. It also has to be the latest statement for your business account.
Though obtaining business credit cards in India is quite easy, banks are particular when it comes to the eligibility criteria they expect applicants to meet.
Banks prefer clients that will provide longevity along with their business. So, some of the basic conditions to be met include criteria such as the age and nationality of the applicant/business owner.
The applicant should be an Indian citizen who is over 21 years of age and not over 70 years.
The eligible entities that can apply for corporate credit cards in India are startups, partnership firms, LLPs, banks, charities and NGOs, sole proprietors, and government-run organizations.
The applying company should have a satisfying track record and provable growth numbers to show an upward trend.
To prove the turnover and profit, the business can share profit and loss statements, bank statements, income, or other financial statements.
What may be deemed satisfactory is subjective to each provider’s own scale, but in general, clean and consistent growth is preferred.
Just like how your personal score is analyzed for personal credit cards, business credit score makes up a part of your application for business credit cards.
Credit scores reveal your repayment habits, as well as your borrowing habits, which the credit provider will want to know. Having a good credit score will help you get approved quicker by the bank of your choice.
Visit the website of your corporate credit card provider and start the application process from there. Most websites collect your basic information as the first step. This includes your email, business name, and contact details.
A representative from the bank will contact you to explain the plans and fee structure. This person will help you with the entire application process.
You might receive the forms and documents at your doorstep if the bank provides such facilities. Once filled, the form and the supporting documentation will be collected by an assigned representative from the bank’s end.
Once verified, the bank will intimate you of the decision. If approved, you will receive the corporate card kit through mail.
Applying for corporate credit cards through offline mode needs a bank visit. Check their website to find the nearest branch.
The process would technically be the same, but you would be conducting it manually in the presence of an account manager or representative.
They would also be able to answer any follow-up questions you have about the product that would not be readily available on a website.
So, if you’re someone who prefers to explore a product in-person and has the ability to easily visit a branch, then an offline application may be for you. But bear in mind that offline processes are generally more tedious and long-winded.
Corporate cards hold innumerable benefits for businesses that are scaling up. But lengthy processes and pending approvals can deter your flow and drain energy.
Also, traditional providers don’t have solutions that are tailor-fit for businesses of all sizes. There can be restrictions on card usage if only a limited number of cards are provided.
Spend tracking will not be the best. Above all, you won’t have absolute control over your spending. It could take ages to avoid these setbacks and pick the best provider with elevated benefits in India.
Hold on! There is a quick option. Volopay. Now you can apply for a corporate card online within minutes. Volopay corporate cards have other benefits too.
• You can have both physical and virtual credit cards. Get access to unlimited virtual cards on the Volopay platform to manage employee expenses and other business spends.
• You have ultimate control over each card. By setting limits, you can avoid overspending by employees and still make it flexible by setting up approvers for extra credits.
• Viewing all card-related expenses in one place is possible. You can relate each card to a department to monitor how much each department spends.
• Card expenses are synced then and there automatically with other accounting apps like Zoho and Quickbooks.
• There is an intuitive platform available to automate your whole accounts payable.
Volopay offers a more versatile solution for your corporate card requirements. This works great for any Indian businesses that are on the brink of sharp growth.
Apply for Volopay corporate cards today and put your business on the rising path.