How to get a corporate credit card in India?
Corporate credit cards in India came into existence to help businesses sort out business-related expenses of employees.
Though reimbursements are more popular, it increases the workload of employees and accounting teams. Many expenses go unreported or falsely reported leading to poor expense reporting.
The payment mode that overcomes this and also makes the job easy for everyone is the corporate credit card in India.
By distributing the corporate credit card for employees, you empower them to cover their own business-related expenses with business funds.
How do corporate credit cards differ from the traditional ones?
Corporate credit cards look and work like any other cards. They come with the names of employees on top of them.
Specifically, corporate credit cards work differ from normal credit cards in the following ways.
• Corporate credit cards come with the ability to be managed from a centralized dashboard.
• You can set budgets for each card controlling out-of-pocket expenses of employees. You can also set authorizations if more credits must be added.
• You can block or freeze the card anytime from the dashboard if the card should not be used further.
• The corporate credit card for employees gives you real-time visibility. You can keep an eye on where your card is used right from the dashboard.
• Corporate cards come in both physical and virtual or digital formats.
• You can link each card to a relevant department. So that makes it easy to see how much each department has spent.
What documents are required to apply for a corporate credit card in India?
Interested in assigning the corporate card for employees? The corporate credit card in India requires a business to submit the following documents.
1. Personal and business identification proof
Any government-issued ID card like Aadhar, pan card, voter ID, driving license, or passport works. This ID proof should have the full name and age of the applicant.
2. Address proof
For address proof of the business, you can submit rental or lease agreements, utility bills, licenses or ownership documents, property tax, and rental receipts.
3. GST certificate and GST number
Every eligible and registered tax-paying business in India can obtain the GST certificate. You can download yours by logging into the government GST portal.
GST number will be present in your login details of the GST platform.
4. CIN number
CIN number means Corporate Identification Number or Company Identification Number. This is a unique identification number given to businesses.
You can find yours by running a search on the MCA 21 portal.
Search with your company name, ROC registration number, or old CIN. CIN number is a must to apply successfully for a corporate credit card in India.
5. Recent bank statements
Bank statements of a business are considered an important document proof to validate your eligibility to own a corporate card.
They decide how much credit you are eligible for. Fetch bank statements of your business checking account for the past 3 to 6 months.
6 key factors to consider when choosing a corporate credit card in India
There are countless options for Indian SMEs to provide corporate cards for employees.
Before choosing an ideal product, you must be aware of certain factors related to the features of this product.
Meets specific business needs
No two businesses spend alike. The spending habits vary based on the location, nature of the business, industry, and many more factors.
If you look at the types of corporate credit cards offered in India, there are travel cards, premium cards, platinum user cards, charge cards, cards with usage limits, etc.
Depending on your business requirements and employee travel needs, you can choose a card and plan that works well for you.
Product features
The reason that pushes businesses to go for corporate credit cards is its features. Some features that must be present ideally are
• Ability to set budgets for each card
• Monitor expenses of all cards in one place
• Should be able to set limits
•The number of cards generated shouldn’t be limited
• Should be able to delete or freeze the card if it’s not needed anymore or in case of misuse
Perks and privileges
The bonus benefits of having a credit card are enjoying rewards and cash back. Corporate credit cards in India typically offer cash back. They might also offer cheap international transactions at a cut-down FX rate.
There are also cards that offer you discounts for specific spending, let’s say a hotel or air ticket booking through a particular app.
By choosing such products, you can reap more of what you spend.
Annual fees and other charges
The corporate credit card in India is indeed an expensive product. But the price range differs from provider to provider.
There might be annual costs or charges associated with each transaction. Some providers emphasize hidden charges also.
Compare the charges of different card providers and also analyze if their pricing is transparent.
Credit limit
You can predict how much you need to manage employee expense needs. Your credit lender must be able to provide that.
Also, your current loan and other liabilities will be taken into consideration to determine your eligible credit.
Hence, you need to make sure that you will get the required amount of credit needed to load the corporate credit for employees.
Ease of application process
Most providers of corporate credit card in India have a single-click application process. They require minimal information and documentation.
At maximum, it will take only a few minutes to fill out and submit an online application. They are also prompt in sharing the updates and sending the card.
Choosing such a provider will make the task easy for you. If you go for providers with lengthy forms and those who ask for old documents and statements, it will prolong the process.
Suggested read: A guide on how credit card processing works in India
Switch to Volopay corporate cards for your business in India
Looking for a powerful card that comes with all the above features? Our corporate cards are the best for making online payments and out-of-pocket expenses for employees.
Here is why you must consider Volopay cards.
1. Volopay has both physical and virtual cards. Physical cards are premium, sleek-model.
2. Virtual cards can be created within the dashboard and used anywhere. Each card comes with unique card details. And you can create as many as you need.
3. Along with assigning the cards for employees, they also work best to schedule monthly subscription bills in auto-pay mode.
4. Be able to set budgets for each card and control how much employees spend. If they need more, they must get approval.
5. No longer need a card? Or do you detect fraud or misuse? Simply freeze or block the card.
6. Monitor from the main dashboard the transactions processed through each card.
Compared to other corporate card providers in India, Volopay cards are cheaper, reliable, and best for both local and international payments.
Manage your business expenses with smart Volopay cards
FAQs
No. Corporate credit cards only check the financial status of your business and verify your previous months’ bank statements and profit and loss statements.
It typically takes 3 to 5 business days to apply, verify your profile, and be issued a corporate credit card in India.
The credit score of your business is required to determine your creditworthiness and eligibility to own a corporate credit card in India.
With many fintech players and prominent banks in the game, it’s very easy for any growing business to apply for a corporate credit card for employees. But it also depends on the financial condition and other liabilities of the business.
No. On the contrary, it helps in boosting the credit score, given you repay the borrowed credit on time.