Corporate credit cards in Singapore - ultimate guide
One of the main aspects that business owners have to pay attention to is expenses. It’s no surprise that corporate credit cards get brought up a lot in the context of managing business expenses.
However, with many features, uses, and providers, it can be overwhelming to get started with choosing which corporate cards are the right ones for you.
With digitization being simultaneously one of the biggest challenges and opportunities for Singaporean businesses in 2023, you’ll want the best corporate credit card with automation and digital tools that allows you to keep up with the technology-driven market.
What are corporate credit cards?
As the name suggests, corporate credit cards are cards that are issued to companies. Unlike personal credit cards, business owners and employees aren’t legally responsible for corporate cards and their expenses.
Not only that, but the spending that happens on a corporate credit card doesn’t reflect on the owner’s personal credit score. Instead, they’re attributed to the business credit score.
You can issue corporate cards for employees to enable them to make business expenses without having to rely on reimbursements. Using corporate credit cards for small business is also beneficial as providers often offer rewards and other perks that will help your business spend more efficiently.
How do corporate credit cards work in Singapore?
At its core, corporate credit cards work similarly to personal credit or debit cards. You can use your corporate card to make payments both in-store and online. That said, corporate cards come with additional features that a personal credit card might not have.
For example, it’s likely that any corporate credit card you have for your business will be tied with an expense management dashboard to help you view and control all your cards.
Employees can make purchases on behalf of your business using a corporate credit card. Singapore has many providers that offer corporate credit cards.
After you create your cards, you’ll be able to issue them to your employees while still monitoring the expenses that they make. At the end of your repayment cycle, your business will be required to pay the credit balance of your cards.
Benefits of corporate credit cards for your business
Streamlines payments
Reimbursement can be a complex process that takes a long time. Relying on out-of-pocket expenses and reimbursements to make business spending is impractical, especially when you have a lot of transactions.
Corporate credit cards will allow employees to bypass the long processes to make business expenses with ease.
Advanced security
Corporate card enable secure payments, complete with spend controls that make them safe to assign to your employees.
You can adjust spending limits for each of your corporate credit cards, create parameters for where they can be used, and freeze or block your cards instantly. Should a card be compromised, you can immediately act on it.
Access to capital
It’s beneficial to use corporate credit cards for small business. You might have previously run into cash flow problems because of customer payment delays.
When you have a credit line, you’ll be able to make purchases to help grow your business while repaying your credit at a later date. Access to more capital makes your purchase cycle more flexible.
Easy expense approvals
You can set pre-approved limits according to your company policies. Any card transactions below the given limit will automatically be approved, meaning that your finance team doesn’t have to spend long hours processing approvals.
When a limit update is requested, approvers can also easily review the request from anywhere at any time through the card dashboard.
Spending controls
With access to plenty of spend control options for your cards, you won’t have to worry about leaks in your cash flow due to excess spending.
You’ll be able to set individual spending limits for each card, customizable card expiration or termination dates, and even the spending categories the card can be used for. Prevent unauthorized expenses from happening.
Financial management tools
Modern corporate credit card providers will have a dashboard that your cards are linked with. The dashboard functions as a control center for all your corporate card expenses.
You’ll have access to a suite of financial management tools that allow you to set spending limits, view expense reports, block or freeze cards, and many more—all in one platform.
Factors to consider when getting corporate credit cards for your business
Real-time visibility
When you issue corporate cards for employees, you want to be able to track their spending at any given time as best as you can.
Look for a corporate credit card provider that offers real-time visibility, where your employees’ card expenses are immediately reflected on a web dashboard or mobile app as soon as they happen.
Interest-free credit line
Not all corporate credit cards offer the same interest rate. Luckily, there are several providers that can waive your credit interest temporarily or even offer interest-free credit.
You want to find a card provider with an interest-free credit line that you can take advantage of. Make sure that your provider also doesn’t require a personal guarantee.
Integration with accounting software
Accounting for your card expenses may get complicated because of the transaction volume, but it’s necessary to do. By accounting for all your expenses, you’ll be able to identify spending patterns and make better financial decisions.
You can streamline your accounting processes with integration, making it easy for your team to stay on track.
Multi-currency support
It’s likely that you’ll want to equip your employees with corporate credit cards for travel and entertainment expenses. If you conduct a lot of business internationally, you’ll want your employees to be able to use their cards for overseas business travel.
Pick a provider that allows you to card payments in multiple currencies with low FX rates.
Ease of access and usage
There are many immediate priorities that business owners and executives need to take care of. Even for busy business owners, applying for a corporate credit card should be easy.
Opt for a provider that has a simple digital application process and an easy-to-use card management tool to get yourself started as soon as possible.
Perks and privileges
One of the big differences between corporate card and personal credit card is the rewards and benefits that you can get utilizing a corporate credit card. Singapore has many card issuers that offer various perks and privileges.
You want a corporate card that has rewards such as cashback, vouchers, and discounts to help you make the most of your spending.
How to get a corporate credit card for your business in Singapore?
To be eligible for a corporate credit card, your business must first be registered with ACRA. Most corporate card providers also will only issue cards to companies with 15 or more employees. At least 15 employees must also be eligible cardholders.
Typically, a revenue of over USD 4 million and expenses of over USD 250,000 are the threshold for how big your business must be to get a corporate credit card. However, while the term corporate credit card may suggest that your business needs to be a larger corporation with high annual revenue, there are also providers of corporate cards that cater to small and medium-sized growing businesses. Providers will want a look at your business financial profile when you apply for a corporate card.
You will also need to have a good business credit score to be able to get corporate credit cards. The approval of your credit line will be determined by documents such as your credit score, bank statements, and past credit repayment history.
If you have fulfilled all the requirements stated by your corporate credit card provider of choice, what you need to do to get started is prepare your business documents to begin the application process. You’ll need some form of identification, proof of your company’s registration, as well as financial documents and statements.
Best corporate credit card providers in Singapore
There are several well-known names in Singapore that are trusted corporate credit card providers. Here are some of the best providers along with great corporate credit card options in Singapore.
The UOB Platinum Business credit card has a 0.3% cashback on all transactions, along with other perks like free travel accident insurance coverage.
Offering the Mastercard Easy Savings program, you can also get more cash rebates for business service purchases from companies like Microsoft and Apple.
You’re bound to save on costs with UOB.
You get a two-year annual fee waiver with Maybank before you have to pay SGD 180 per year for the Maybank Business Platinum credit card.
With an affordable fee, you can enjoy perks like 0.4% cashback, rewards for recurring bill payments, and even a free airport lounge visit.
There are other dining and travel perks available globally.
Working together with Singapore Airlines, American Express has the American Express Singapore Airlines Business credit card.
This card offers many travel perks like 2 free lounge visits per year, complimentary night’s stays, dining discounts, and KrisFlyer miles.
While there is an annual fee of SGD 301, it’s waived for the first year after creating your card.
DBS offers the DBS Platinum Business card, which is known for having many rewards such as cashback and points.
You get a 0.4% cashback on general transactions.
With reward points that can be earned for every expense of SGD 5, DBS cards are a great choice of corporate credit cards for small business.
While OCBC offers many credit cards, their designated corporate cards are the OCBC Business debit cards.
You won’t get a credit line with these cards, but you can still enjoy up to 0.5% cashback on your spending.
They also have credit cards like the OCBC 365 and OCBC Titanium Rewards credit cards, which aren’t specifically a corporate card.
A great affordable choice of corporate credit cards with many travel rewards is Citibank Corporate credit cards.
Not only do you get a 0.3% cashback on general business expenses, but you also get frequent flyer miles and free travel accident insurance.
You can get the card with an annual fee of SGD 150.
Why should you choose Volopay corporate cards over others?
Customizable spend controls
Volopay cards come with card management tools that enable you to customize spend controls according to your business needs and company policies.
You can set budgets and department spending limits, as well as customize termination dates for your cards. In just a few clicks, you’ll be able to apply controls to individual cards.
Unlimited virtual cards
Along with physical cards for T&E expenses, you can also generate an unlimited number of virtual corporate cards with Volopay. You no longer have to worry about losing your cards.
Assign a card specific to each department, subscription, or project to manage your spending better. Virtual cards also come with added security.
Flexible credit line
You can get an interest-free credit line with no personal guarantees when you apply for Volopay corporate cards. Moreover, you’ll be able to grow your credit parallel to your business growth.
You also have flexibility when it comes to your repayment cycle, meaning that you can choose what best suits your business cash flow.
Real-time expense tracking
All your card expenses are reflected on your Volopay account as soon as they happen.
Spenders and approvers will both be able to see which data is missing from the expense report.
As soon as they’re filled, they can instantly be reviewed. With no delays, you get better information to make quick yet well-informed decisions.
Mobile app functionality
While it’s handy to have your cards linked to a web dashboard where you can exercise spend controls and review expense records.
It’s even more convenient when you have a mobile app to help manage your expenses.
Employees can submit card expense reports and approvers can review requests on the go through the Volopay app
Multi-currency wallet
Instead of relying on expensive international money transfers, you can make payments using your Volopay corporate card in different currencies.
Load and spend in foreign currencies to conduct international business transactions without having to switch between platforms.
Use your cards for overseas expenses while easily maintaining control through multi-currency wallets.
How can Volopay corporate cards help streamline business expenses?
Reimbursement is a complex process. Paper receipts can get lost, reports misplaced, and there might be errors in your data. As a result, it could take your finance team many hours to settle reimbursement claims. It’s tiresome for your finance team and frustrating for other employees to have to wait for out-of-pocket expenses to be reimbursed.
On the other hand, solving these issues by relying on the owner’s personal credit to make business expenses is not a smart decision. You’ll need a personal guarantee, the owner’s credit score will be affected, and you’ll have a hard time tracking all your business expenses.
Luckily, corporate cards provide a solution to this problem. With Volopay corporate cards, you can allow employees to make business expenses without having to wait for reimbursements.
Assign each employee a corporate card, complete with card management tools to give you more visibility and control. Payments can be much faster, simpler, and more secure. Empower your whole business with corporate cards.