A corporate credit card is a financial instrument whereby the responsibility of paying the outstanding amount remains with the company irrespective of who uses it. Also, as the bills on corporate credit cards are paid via the company account, it is less risky for owners since they are not in charge of paying the bills.

Employees can use the card to meet all business-related expenses. Since employees are not in charge of paying the bills, their personal credit score is not affected as well. These cards also offer several perks and benefits to the cardholder.

However, to be eligible for a corporate credit card, a company should have an annual turnover of minimum Rs.10 crore. In that case, small and medium businesses whose annual turnover is less than that can apply for business credit cards. Most financial institutions in India offer business credit cards. But, unlike corporate credit cards, business owners are responsible for paying off the credit card bill in time.

Additional Read: How to Apply for a Credit Card

Business credit cards come with a host of benefits which can help a business to meet all its expenses and run the venture smoothly even during a crisis. These benefits include –

  • Emergency loan – One can opt for an emergency personal loan during crisis by converting the unutilised credit limit of their business credit card. Moreover, no interest will be charged for up to 90 days. They only have to pay nominal processing fees.
  • Zero interest cash withdrawal – Business credit cards also allow cardholders to withdraw cash from ATM without paying any interest for up to 50 days.
  • Easy conversion to EMI – one can easily purchase big-ticket items and business inventory without sustaining financial setback. Business credit cards allow individuals to convert the outstanding amount in the card to affordable EMI’s which makes it easier for them to pay off the due amount.

Other essential benefits include improved security features and substantial reward points on joining and specific purchases. You must choose a business credit card wisely to maximize benefits. Proceed to apply for credit card in a few simple steps.