Entrepreneurs always hunt for a smart way to manage expenses. They always desire to have smart corporate cards to make fast transactions online. Some succeed through expense management software, and some fail due to a lack of accountability tools. To sort out the problem, EnKash provides smart and efficient solutions such as corporate credit cards. It will help SMEs and other small businesses to grow.
By definition, a corporate credit card is a credit card issued to an organization. They must take care of their business-related expenses. For instance, the company can manage supplier payments, travel booking, meals, rental cars, and other expenses. Additionally, countless situations occur while you are operating a business. You need to purchase subscriptions, domains, software, learning materials, and more things online. So, if you don't want to share your personal credit card details or own funds, corporate cards will fulfill your needs.
Traditionally, SMEs and startups were the most underserved among the enterprise ecosystem wrt getting corporate cards. The silver lining is that a few fintech companies like ours, are launching innovative products specially designed for SMEs and Startups.
Following are some key benefits that SMEs and Startups are deriving from Corporate Cards:
Corporate Cards for a favorable working capital environment
Corporate Credit Cards are a great tool for SMEs and Startups to enhance their working capital requirements. Having the flexibility to pay to the bank at a later date can not only expedite the payment of suppliers but also help in getting early payment discounts, and any money saved is money earned.
For SMEs and startups, who are traditionally very tight with their working capital, any extension in their DPO (Days Payable Outstanding) is always welcome
Act as an Expense Management System
Corporate cards comprise expense management software. It helps employers to manage their business expenses.
Earlier, employees used to pay for all their business-related expenses out of their own pockets. Alternatively, they use their credit cards and then get reimbursement. The entire process was very lengthy, manual, error-prone, and time-consuming. It involved managing multiple receipts, paperwork, and issues in reconciliation. This also hampered the employee's productivity.
All of such expenses are now managed easily with corporate cards designed especially for SMEs and startups. Using the EnKash card is now easier to make payments for the said expenses. Because it comes with the monthly statements helping in easy reconciliation and tracking of all expenses. It is a win-win situation for the employees as well as the SME/Startup.
Corporate Cards as an Expense Approval System
The centralized finance team /person of the Startup and SME would not want to share financial or bank account details with the employees for different business payments. Instead, now they can issue corporate cards with pre-set overall and per transaction limits.
The limits can also define where a card can be used, limiting daily/ weekly/ monthly purchases to specific merchants among others. Such an expense management platform helps in keeping control of the entire financial situation. Also, it reduces any risk of fraud and mishandling of funds.
Dashboard Reports and Complete Visibility
Corporate Credit Card also provides a dashboard report with various filters to help organizations get complete visibility of all their financial transactions. Diversified filters in EnKash Expense Management Software will help in generating customized reporting. For instance, you can see all the vendor-based, spend vertical-based, location-based, and other transactions at a place and do a comprehensive spend analysis. It provides the much-needed centralized and streamlined process of cash management. Also, it allows credit allocation for future financial planning. It also frees the finance team from manually generating all such reports.
Easy Payment Option for other Business Expenses
Select Corporate cards designed by EnKash can be used by SMEs and Startups for their bills payable. A few examples include fuel expenses, digital marketing expenses, and cloud storage bills, among others. Using EnKash cards, and paying utility bills like rent, electricity, GST tax, etc., are just a click away.
Corporate Credit Cards, if used correctly, can be an important tool, especially for SMEs and Startups. Convenience and security are major points of consideration for any setup. However, it is a fact that EnKash corporate cards help small organizations with their working capital requirement.
Borrowing money from banks or private lenders at a very high rate is definitely expensive. And the main point is, you didn't receive the fund immediately on request. But EnKash is the reverse where you get instant cash in your corporate cards which makes it most beneficial. With renewed interest in this financial instrument, it will be interesting to see what the future holds for everyone in the ecosystem.
