Tag: Business credit cards

For any business to flourish, a corporate credit management and a steady cash flow are crucial. The more working capital your business has, the more strategic decisions can be made concerning investment, talent acquisition, and purchases.

To maintain a healthy cash flow in your business, you need to put firm protocols in place for your Accounts Payable (AP) and Account Receivables (AR). When these two start generating cash flow like a well-oiled machine, that’s when you know that your business will never run out of money.

Cash is king, but it’s not always possible or smart to make cash payments. More often than not, businesses rely on working capital loans or credits for making their purchases and, in turn, paying their invoices or payroll.

Leverage Short-Term Credit management with Corporate Cards

There are two types of credits available in the financial landscape

• A line of credit
• Revolving credit.

Let’s see the differences between the two in detail.

A line of credit is a one-time financial arrangement or a static product that is closed once the borrower spends the set amount of credit, whereas borrowers can use revolving credit and repay it over and over again up to a certain credit limit. Revolving credit and lines of credit are facilities that offer the borrower purchase and payment flexibility.

A revolving credit product can be used up to a certain credit limit and paid down. And it remains open until such time that the lender or borrower closes the account.

On the other hand, a line of credit is a one-time arrangement such that when the credit line is paid off, the lender closes the account.

Both these financial arrangements are available to businesses. Business owners can opt for any of these credit types according to their source of financing and working capital requirements.

Major differences between A Line of Credit & Revolving Credit

Even when the two seem similar, there is one huge difference between the two types of credit-renewal of credit.

While the pool of available credit does not replenish after payments are made in revolving credit, this is not the case in a line of credit. Once you use the line of credit and pay it off in full, the account is closed and can no longer be used.

These two types of credit are substantially different from a typical loan. When you take a loan from any financial institution, you get a lump sum amount of money and the interest gets charged right away.

In a line of credit, you can borrow funds up to a certain amount in the future and the interest is charged only after the line of credit is tapped into.

In revolving credit, like that in credit cards, you are assigned a credit limit in advance. You can borrow any number of times until that credit limit is not breached, and then pay back the amount by the due date. Once that amount is paid off- fully or the due payment amount, the credit is available again to borrow against.

These kinds of credits are usually short-term credits because the interest rate charged on these credits is way higher than normal loans.

Corporate Credit Management Tips

Businesses rely heavily on credit to keep their cash flow consistent. This is where corporate cards enter to save the day. Corporate credit cards, like Purchase Cards powered by EnKash, offer excellent revolving credit which is a boon to businesses that often face cash crunch to pay off their invoices on time.

With a revolving credit line, you can defer your payments to a later date for purchases made on these P-cards.

The advantage of having a powerful purchase card is that you do not have to pay the full amount of the bill right away. For example, if you have a bill of 10 lacs INR on your P-card, you can only pay 50,000 as an initial payment and pay the rest of the bill at a later date

Likewise, by deferring payment to a later date, you are using your revolving credit wisely and can do the best credit management to track where your money goes.

By not paying the full amount, you can use the remaining credit for expansion, purchases, and payments to other overdue invoices. In this manner, a commercial purchase card can boost your business’ financial efficiency by boosting your cash flow. Also, you keep your eyes better on the source of financing working capital.

What EnKash do for your business?

With an EnKash purchase card, you will never have to face cash crunch situations because you have the option to partially settle the bills along with customizable credit cycles. Team it up with an intuitive spend management platform like that of EnKash and you’ve got yourself centralized visibility in your business finances along with control over where your money goes because you can prioritize payments based on their due dates automatically.

A purchase card can be the best weapon in your financial arsenal if you use it wisely. Direct all your corporate expenses to your P-cards and enjoy revolving credit, customized credit cycles, faster payments, and improved cash flow- all in one go.

Additionally, corporate cards have many more advantages. It can eliminate most of the manual work that goes behind making payments as it is completely digital. With corporate cards, you can get real-time updates on all the transactions made on the card, and hence, reporting is faster and more detailed.

Employees can also enjoy the perks of digitization with the power of P-cards. It’s a hassle-free way of paying which empowers purchasers to make decisions faster. The finance team can have complete visibility on the expenditure on these cards as it happens so they can leverage the revolving credit into grabbing opportunities whenever they arise.

So, what are you waiting for? Revolutionize your procurement process with corporate credit cards like P-cards from EnKash and make that cash flow!

EnKash is not only a Corporate Credit Management Solution but also freedom for your financial capital management headache.

FinTech, short for Financial Technology, has been making waves in the Indian financial ecosystem in terms of b2b payments in India for a few years now. FinTech is now a significant force to be reckoned with in this new age. Today, India is one of the largest FinTech markets with the highest FinTech adoption rate of 87% worldwide. Especially post-Covid, India, along with some of its global peers, has seen tremendous growth in FinTech.

Fintech Credit Cards & B2B Payments Solution

As per the latest report – “India FinTech: A USD 100 Billion Opportunity” by Boston Consulting Group (BCG) and FICCAI, India’s FinTech Industry is estimated to grow up to USD 150-160 billion by 2025. The report also noted that Indian fintech companies have raised about USD 10 billion from investors all over the world over the past five years, catapulting the sector’s total valuation to an estimated USD 50-60 billion.

India is also only second to the US in emerging FinTech-based start-ups with around 2100+ FinTech start-ups as per MEDICI’s India FinTech Report, 2nd Edition. Of the over 2,100 fintech firms existing in India currently, 67% have been set up in the past five years.

COVID-19 has further accelerated the pace of digitization across categories. While Indian FinTech has cumulatively raised more than USD 10 billion since 2016, eight fintech companies have reached the ‘billion-dollar-valuation’ milestone (unicorns), and an additional 44 are valued at over USD 100 million as of date, the report said.

Between March 2020 and January 2021, B2C & B2B payments in India (by value) have risen to 3x their pre-pandemic value, with three new unicorns and five new ‘Soonicorns’ (about to become unicorns) being created since January 2020, the report said.

Digital Lending Platform & Fintech Payment Gateways in India

“We believe that India’s FinTechs are at the precipice of a significant value-creation of USD 100 billion over the next five years. To actualize this potential, the industry would require additional investments to the tune of USD 20-25 billion,” BCG Managing Director and Partner Prateek Roongta said. Consequently, the number of Indian fintech unicorns will more than double by 2025, he added.

While Fintech is becoming the lifeblood of an economy, Injeti Srinivas, Chairman, IFSCA, agreed that despite enormous potential in India, only a fraction of the economic transactions happen digitally via fintech corporate card and other b2b payments India mode.

The government’s Direct Benefit Transfer scheme, Digital India, Start-up India, and UPI initiatives however can be a great trigger to this process combined with the talent at the grassroots level that made use of this opportunity, said Srinivas.

A new report from Deloitte India also noted that Fintech companies have grown a staggering 13x to 70x over the last two years. The aggregated revenue of the top 10 companies has gone up from about USD 20 million to approx. to USD 70 million between the 2018 to 2020 period.

On the contrary, a new report from Accenture noted that despite the significant increase in the adoption of digital technologies over the past few years, there is a continued lack of technical expertise and digital fluency in the boardrooms of the world’s largest banks and India, of course, is no exception to the rule.

According to the report, Accenture recommends that technology experience for making business payments. While the world’s largest banks have made progress in adding technology experience in the boardroom, progress has been slow. That gets reflected in their way of dealing with customers and other stakeholders as well.

On the brighter side, several banks are now joining forces with FinTech start-ups to upgrade their existing systems and enable smoother operations to deliver a better experience for consumers towards digital lending platforms & b2b payments in India. Similarly, by leveraging data analytics, FinTechs have encouraged collaboration between numerous financial service providers and enabled them to deliver products and services through an open architecture.

As Sanjay Doshi, Partner and Head of Financial Services Advisory, KPMG in India, commented, “Many of the banks in India are now going down the path of digital. They are looking at tech and fintech credit card companies that can help them move their digital activities forward, either investing in them directly or using them as service providers. That is going to be a big growth area for investment here in India — banking-as-a-service platforms.”

Digital Payments & Fintech Credit Card India

In a report by Infosys titled ‘FinTech Revolution in Banking: Leading the Way to Digital’, crucial reasons are mentioned that led to the FinTech revolution. Traditional banks have many problematic issues that FinTech can help resolve effectively.

According to the report, the various reasons are:

• Banks are highly regulated and bound by numerous compliance norms
• Banks have high operating costs due to the high number of branches across the world
• Banks have poor visualization beyond traditional business lines as they are publicly held companies averting risk propositions
• Low involvement of customers in the center of operations
• Low investment in innovation and technology
• Low collaboration with progressive minds Lack of focus on individual profitable products and services
• Difficulties and resistance in upgrading legacy core banking infrastructure

Adopting Fintech Credit Card in India

Due to the above-mentioned reasons, banks shy away from adopting the full potency of FinTech credit card India that can truly enhance the way banking happens. What banks don’t realize is if they partner with FinTechs rather than looking at them as rivals, they can earn many fruitful rewards from this dynamic partnership.

Collaboration of banks and Fintech can result in:

• Safe and Secure Banking
• Mutual Growth
• Wide Range of products and services
• Ease of Transactions
• Discounts & Offers
• High Return on Investment Regulatory Support and Government Incentives
• Venture into New Alternate Business

With a high demand for B2B payment solutions in India, EnKash is now emerging as the best FinTech company to serve the nation. Just take a glimpse to get an idea.

Fintech – More Than a B2B Payments India Solution

These reasons should be reason enough for banks to break all shackles and wholeheartedly embrace all that FinTechs have to offer such as Fintech credit cards, b2b payment setups, and more. FinTechs offer services in the form of products, applications, business models, and business processes.

FinTech start-ups are taking core and non-core banking business to the next level by providing faster, smarter, and more innovative solutions in all spaces.

Emerging FinTech players like EnKash offer the smartest all-in-one platform for all kinds of commercial spending and needs for B2B payments. By enabling card payments where cards are not accepted, EnKash has made B2B payments robust yet insightful.

Over the past couple of years, corporate cards have garnered a massive response. They are slowly but steadily becoming an indispensable tool in the arsenal of a successful businessman. Any business, whether a start-up, SME, or BigTech, needs to keep track of the business expenses.

The money spent by employees for business purposes should have a fail-proof way of being recorded and traced. While very few people feel that corporate or corporate credit card India risks financial exposure, the majority are in full favour of Corporate cards being a must-have in any business’ finance portfolio.

An increasing number of companies are adopting corporate credit cards. However, there is still a higher penetration opportunity in India for business expense cards. The market is highly under-penetrated with the options available in corporate payment cards that can be used in several customized ways.

Challenges Faced by Businesses In Absence of Corporate Cards

Manual Reimbursement: Not every company opts for issuing corporate cards for their employees. In such cases, employee reimbursement comes into the picture. Employees pay for business expenses from their own pockets and then submit the payment receipts to the finance team for reimbursement. 

Tracking & Receipt Management: Doing this requires an awful amount of expense tracking, maintaining receipts of transactions, reviews, and approvals from the finance teams after cross-verifying every data and then finally approving the total amount.

Identifying Frauds: This process increases the chances of reimbursement fraud as employees can also stack up personal expenses and get away with them. Reimbursement is time-consuming, unreliable, and cumbersome for all teams involved.

Benefits Of Incorporating Corporation Card Payment System Into Your Business

• Multiple Offers: One of the key benefits that corporate cardholders enjoy is that they get many offers. Nowadays, almost every card provider offers some serious reward points and instant rebates on transactions done via cards. These rebates and reward points combined can generously increase the efficiency of the company’s expense management system.
• Better Control: Tracking spends vs. budget can get tricky when cash payments are used as the primary mode of transaction. With an EnKash corporate credit card in India, all you need to do is import the card statement in the expense report to generate an in-depth analysis of where and how money was spent. This can help identify weak points in the financial report, help make well-informed buying decisions, and gain more control over how and where the business’ money is spent.
• Fraud Reduction: More often than not, employees may try to get into expense fraud. Employees try to sneak in personal expenses under the garb of business expenses and get away unnoticed because of inefficient reimbursement methods. Enabling employees with EnKash corporation credit card payment eliminates all these hassles from the root itself because expenses done via cards are fully transparent with high traceability. It is almost impossible for employees to fraudulently manipulate false receipts to claim expenses.
• Increased Spend Visibility: With corporate payment cards, it gets very easy to keep an eye on the company’s expenses. It keeps a log of every transaction and updates it in the database. This database is synced with the company’s expense management platform so the finance teams can have real-time visibility of all expenditures as and when they happen. This saves hours’ worth of time which is spent on the reconciliation of all payments manually.
  
  

  Let’s take a quick look at the most common corporate credit cards in India available in the market.

  Common Business Expense Cards In India

  • Corporate Cards: These cards can be used to pay for expenses related to the business. These expenses are either paid completely by the organization or shared between the organization and the employee on a pre-decided basis.
  
  
  • P-Cards: P-cards, or Payment/Purchase/Procurement cards, are used exclusively for business-related payments when procurement is involved. These cards are issued only to authorized employees and can be used solely for business transactions.
  
  

  Analyzing the needs of a business, EnKash has introduced a new range of Purpose Built Cards. These cards can be customized by businesses according to their needs.

  These cards can be used to manage all your expenses. Let’s have a quick look at it.

  Corporate Cards Solution by EnKash

  EnKash provides businesses with a holistic corporate cards solution using which businesses can customize cards as per their usage; they can distribute these cards to individuals and departments to manage payments effectively.
  
  These corporate cards help streamline all business expenses and empower employees to make decisions independently. While the flexibility and ease these cards offer are truly unmatched, we at EnKash are the best match for you when it comes to corporate cards. We offer a variety of business expense cards, p-cards, expense cards, gift cards, fuel cards, and virtual cards for you to choose from according to your business needs.
  
  

  Corporate Cards by EnKash

  Meal Cards: Businesses can issue these cards to their employees to save tax and purchase food and grocery-related items across multiple food chains, retail outlets, and supermarkets.
  
  Fuel Cards: Employees who purchase fuel while traveling for work can be issued fuel cards. To ensure fuel expenses are within the defined budget, limits can be defined on these cards. Digital
  
  Digital Marketing Cards: The digital marketing team needs funds for their campaigns. Having a digital marketing card at their disposal will allow them to define their budgets and run them independently.
  
  Virtual Cards: Having a virtual card makes it easier for businesses to track and reconcile all payments. SaaS Cards: For all subscription-based products, businesses can use SaaS cards and manage them with smart controls.
  
  SaaS Cards: For all subscription-based products, businesses can use SaaS cards and manage them with smart controls.
  
  T&E Cards: Travel expenses are a real deal in businesses. To manage them effectively, get these T&E cards from EnKash and track them in real time.
  
  Purchase Cards: Procurement is an essential part of any business. To fulfill this need, P-Cards or purchase cards can be of great value to your business.
  
  

  DIY Card Module

  The corporate card solution by EnKash comes with a DIY card module. It has the following functions:
• Businesses can create purpose-made cards according to their specific needs and use cases, and set spending rules aligned with organization policies.
• You can easily streamline approval workflows and enforce policies to ensure your business spending aligns with your budget.
• You can get immediate insights into your spending patterns with detailed analytics and reports, enabling you to maintain centralized control and optimize business spending.
  
  Having seen all these advantages, it is now clear that corporate cards are the way forward for an efficient payments system.

One of the fastest-changing landscapes of business is that of Financial Technology, commonly known as Fintech. Most businesses are shifting towards the digital lending platform because of smooth and efficient payment. This article will describe the benefits of corporate cards for making business payments to other businesses and suppliers.

How Corporate Cards Came Into The Limelight?

With ever-upgrading rules and legislation to unpredictable laws, the money market has always been a real head-scratcher in terms of trend predictions. Fintech has been a key driver in revolutionizing financial services and business payment modules owing to dynamic consumer expectations and need of the hour solutions.

Moreover, the recent pandemic, i.e., Covid-19 is also the reason behind accelerating corporate cards via Fintech Credit Card. With more and more offices asking their employees to work from home, non-traditional methods of payments have seen a meteoric rise.

Digital payments in India have scaled new heights over the last few years. In the year 2020, 48 billion digital transactions were recorded in India alone, and this trend is expected to grow at the same rate over the years to come.

Below is the infographic that showcases 5 key areas that will be the trendsetters of the bossiness payments space in India. Innovations in electronic payments and dedicated payment systems seem to be one of the 5 leading trends of 2021.

Finance teams have opted to switch to the digital lending platform for ease of the process. While bank transfers have already been accepted in the financial world now, commercial cards are relatively new kids on the block who are quickly gaining popularity worldwide.

Incumbents in this field were initially worried by fintech rapidly climbing the charts. However, this worry was soon put to rest as it was essentially found that 75% of fintech founders claimed that their goal is to partner with key players in the banking industry rather than to challenge them. Owing to this, the majority of large and mid-sized companies are already enroute the highway of change. However, it remains a challenge to make commercial cards lucrative enough for each business.

While there could be many reasons for resistance to adopting this technology, let’s also take a look at the numerous benefits that you could enjoy while adding commercial cards to your business payments portfolio.

Made in India, the First Business Card is specially designed for Entrepreneurs, SMEs, and Small & Big Brands.

Benefits For SMEs, Entrepreneurs, And Businesses

Competitive Advantage

When you offer something new to your partners, you gain an advantage over your competitors. A purchase card gives your business a massive boost as it denotes ease of business payments, increased spend limits, virtual assistance, and real-time updates in payment structure- all at the touch of a few buttons.

Enhanced Risk Management

With great power comes great responsibility! Corporate cards are primarily used to manage business accounting. Such cards come with their own set of risks which can be mitigated in an earlier stage so that a risk does not convert into a potential threat. The virtual credit cards in India can be customized with preset limits, can be authorized to work only at selected outlets, and be accepted only by selected vendors, as deemed fit by the company’s finance team.

Decreased Operational Inefficiencies

Paper cheques and bank transfers come with their package of value-added inefficiencies. These business payment methods require manual intervention at all points and can be rejected due to errors. These operational roadblocks are conveniently eliminated by corporate cards, making them a smart choice to keep the cash flow steady.

Moreover, such cards have been termed as the best credit card for travel in India. In a business, travel is mandatory because the business owner needs to expand the business and for that meeting new clients becomes essential. The travel expenses slip becomes a headache for the account manager and also for the employees as they have to wait for the reimbursement. With corporate cards, all such sorts of problems can be easily resolved.

Benefits for Suppliers

Quicker Receipt of Payments

One of the most daunting scenarios for suppliers worldwide is that of payment receipt. Bank transfers and other paper-based payments take days owing to manual processes associated, sometimes weeks, to process from the banks. This can stall the much-needed cash flow to keep the business engine running. Offering commercial cards as an accepted mode of payment can easily resolve this issue, all the while keeping you updated with the changing payment trends in the market.

Increase in Sales

To make your business grow, having a diverse portfolio of products and services is not all that you need. In today’s economy, you also need to offer a diverse portfolio of accepted payment methods. Allowing commercial cards as a mode of payment catapults you to the top of the list of tech-savvy businesses. And you know what they say: Always in sight, always in mind!

Going off the track, corporate cards stand as the best travel credit card in India that gives ample options to manage your traveling expenses in a business. With this new technology, you can easily handle your business cash flow and focus more on the other prioritized segments.

How to Incorporate Commercial Cards in Your Accounting Infrastructure?

Educate your Consumers and Stakeholders

A change that is well explained is a change that is well received. Inform and guide your suppliers and stakeholders through this switch and educate them as to why commercial cards are all the rage right now. Keep the door open for queries and allow them to easily sink into this change rather than forcing them into it.

Additionally, instant virtual cards in India are helpful for suppliers in many forms. Using this card, they can also handle their business expenses smoothly.

Evaluate your Organization’s AR and AP Structure

It is important to know your company’s Account Receivable and Account Payable structure in-depth to include commercial cards in the portfolio of accepted payment methods.

Evaluate your goals and then distill them down to a card program that works best for your business. Ensure that your purchase department is up-to-date with this add-on as they will be doing all the heavy lifting for your business.

Important factors like where the cards can be used, whether will they be used on an individual basis or a team or department basis, and the kind of expenses that can be done on it- all these questions need to be answered before they arise. The instant approval virtual credit card in India can perform all these tasks smoothly and efficiently.

Ease of Acceptance

Make purchase cards simple to accept. Stick to your payment terms and pay your suppliers on time. Ensure that your vendors, suppliers, and sellers are open to accepting payments via virtual credit card India and, in the process, denote the ease of usage, quicker payments, and faster operations.

Choose the Right Provider

It all comes down to picking the one that works best for you and your business. There are multiple commercial card providers in the market vying for your attention. Choose the one that meets all your requirements and even more. EnKash is a powerful commercial card provider and offers a wonderful Multiple Payments, Single Platform feature that simplifies payments.

EnKash has a host of technology-driven and innovative solutions that are guaranteed to act as a catalyst for your growing business. An instant virtual credit card India initiative should simplify your APs and ARs and we, at EnKash, are always happy to help in doing just that!

The pandemic has pushed entrepreneurs to the edge of their seats. Many find themselves struggling with business payments due to pending invoices or the inability to finance working capital.

Credit scores and technical jargon often get in the way. But we’re here to ease your worries. So, worry less and read along.

What is a Business Credit Score?

A business credit score is the ability of a business to avail loans (e.g., working capital loan) from the market (from banks or Non-Banking Financial Companies (NBFCs). It is the “creditworthiness” of your company and foretells the financial risks for creditors who shall lend your business the needed money.

Business credit scores are also evaluated for issuing corporate facilities (such as Corporate Credit Cards) to entrepreneurs. It is sensitive to many variables, such as payment habits, credit utilization, and consumer feedback, to name a few.

However, it is to be noted that it is not the same as a personal credit score. Entrepreneurs can be creditworthy even when they have a low business credit score, which can mean a risky decision for creditors to lend large sums of money.

Good vs. Bad Business Credit Score

A Credit Report helps you calculate your business credit score. If you are applying for business loans such as the working capital loan, evaluate your credit score beforehand.

• If a business credit score lies somewhere around 700-900 (CIBIL score), it is said to be a good business credit score. Ideally, it should be 750 and above.
• A score below 600 is bad for acquiring credit loans.
• A good credit score instills faith and thereby increases its market value. It also helps to avail start-up loans, working capital loans, etc. Your credit application will be accepted with ease in the least amount of time, and capital will be offered at competitive interest rates.

Steps to avoid/rectify low business credit score

Since we know that a business credit score is crucial to any business, there are some obvious red flags that a company must watch out for.

Usually, a business tends to have a low business credit score if:

1. The company has a history of late repayment of credit

The most important factor is the company’s debt repayment history, which alone determines how risky it is to lend you money. Therefore one must avoid late business payments, pending credit, or any irregularities in this aspect.

2. There is consistent unresolved negative customer feedback.

Many entrepreneurs may not realize this, but consumer feedback forms the next important pillar of your credit report. Any negative feedback negatively influences your company in the public records.

3. There is high credit utilization.

Credit utilization and balance history are other important variables. A general rule in credit finance is that the credit utilization of a company must be 30% of its credit line.

4. You tend to cancel previous credit accounts.

Make sure you do not cancel your previous corporate credit card/accounts as it wipes off your previous creditworthy history. The longer you have been in the market, the more faith lenders have in you. One must build on that established fame even if one plans for a fresh start in your entrepreneurial journey.

Solutions for Collateral-free credit

Do not worry if your company struggles with a low business credit score. At EnKash, we understand that not all businesses have the same growth curve; many face inevitable hurdles and setbacks that can affect the company’s current creditworthiness.

And yet business loans such as working capital loans are essential to sail through daily expenditures, make business payments, and chart future milestones.

EnKash is India’s fastest-growing fintech platform that aims to offer a one-stop solution to all your business needs with its innovative AI-driven technology and smart payment options.

One such option is the series of corporate credit cards launched for the diverse needs of small and rising Indian entrepreneurs in India.

What is a Corporate Credit Card?

A Corporate Credit Card is a multi-user credit card issued to employees for business payments and related expenses. It has multiple uses and employer benefits.

For example, because the employer issues it, they have direct control over the expenses and can cap the spending limit as per the need. It also reduces downtime, as the user (employee) does not have to explicitly report the business payments for every transaction since the transactions are monitored in real time by the employer.

To know more about smart payments through corporate credit cards, you can refer to the link below:

Unlike other corporate credit cards, the EnKash Credit Card is designed as an all-utility credit card that can be used by all teams & employees with no special training and covers all GST bills, supplier & vendor payments, etc., with the least risk of internal or external fraud.

With real-time spending visibility along with a unique WhatsApp tracking feature, your data is always safe, and your money is at the control of your fingertip.

How to apply for a Corporate Credit Card in India?

Even with a low business credit score, it is now possible to take your venture to new heights with innovative solutions such as the EnKash Credit Card.

You can apply for a business credit card in India with these easy steps below:

• With a 100% digital KYC, you can order your business credit card from your comfort place.
• We do not seek credit score reports or collateral to offer you working capital finance or business loans or to issue credit cards.
• With only a few documents (to be uploaded online), you can get a corporate credit card issued in a matter of minutes.

To know more, visit: EnKash. You can also click below on Signup Now and we will reach out to you soon.

You might be thinking about whether a corporate credit card is the right tool for you. Whether you’re in charge of a company’s finances or an individual, how you answer this question will differ.

As a company corporate cards provide a number of benefits for companies looking to give their employees purchasing power while also managing expense reporting. Among the benefits are the following:

5 Key Benefits Of Using Corporate Cards

• Employees have access to a credit line
• Perks and reward packages for employees, as well as cost-cutting measures
• Expense reporting and analytics made easier
• Employee spending power is under your control.
• Concur and other expenditure management systems can be integrated.

At first look, this list of advantages may tend to make offering your employees a corporate credit card a simple decision. If you want to enhance your employees’ purchasing power through a corporate card program, you must be familiar with the program’s features and its execution.

Before giving staff corporate cards, make sure your business expenses policy is in place and that employees understand when they should use the card and what types of expenses should be charged to the card. All direct and indirect expenses related to the business are charged including corporate gift cards.

Corporate Cards- A Masterpiece Utility For An Employee

As an employee, corporate credit cards can give you more spending power and card advantages, help you keep your personal and company costs separate, and make expense reporting and reimbursement easier. Some of the corporate card benefits when given to employees include:

• Expense simplification
• Distinguishing between personal and business expenses
• Access to premium credit card benefits at a low (or free) cost to you
• Employee Reward Program

There are almost certainly as many corporate policies surrounding the use of corporate cards as there are corporations. We’ve seen policies ranging from a strict requirement that all business spending be paid to corporate cards to a recommendation that company expenditure is charged to a corporate card as a convenience. Check with your company to ensure that you understand your company’s policy.

For more information related to corporate cards, spend management utilities, and other financial tools relevant to business, you can watch videos from the link.

Corporate Cards: Benefits for Companies 

Now that you are familiar with corporate cards and their benefits for the employees. Let us know what are the benefits of a corporate card for the companies.

Cash Rebates

The most visible of the corporate card benefits is the annual cash rebate on purchases. Cashback rebates differ for each provider and their partners and can vary from 1% to 5%, depending on the card issuer and the type of purchase made (items such as office supplies, airline tickets, and gasoline typically see higher rebates).

Improved Spending Management

The spend management utility is the most acceptable means to track the company’s expenses, and corporate cards do the same effectively. By simply entering card statements into an expenditure report and accurately identifying all transactions, spend analysis reports become substantially easier.

The ability of a finance team to evaluate data accurately and efficiently is significantly improved by centrally storing this spend information in the same manner for all employees within a business. Visual dashboards can easily analyze transaction data pulled from the system to provide actionable intelligence for financial decision-making.

This information can be used in a variety of ways, including analyzing expenditures against budgets, negotiating volume discounts with vendors, and finding inefficient spending areas in order to make organizational changes.

Expense Processing That Is More Straightforward

The expense management procedure is greatly simplified and efficient when corporate cards and expense management solutions are integrated. Directly importing credit card statements into the expenditure report enables the collection of precise transaction detail. On their expense reports, cardholders include pertinent information (billing code, client data, etc.). The expense management system can then export this data directly to the ERP, enabling more accurate and timely billing of clients.

Let’s have a look at India’s finest Fintech tool to manage all your spending in one place.

Eliminate Expenditure Fraud

There is always the risk of expense fraud when employees pay for products themselves and submit expenses with photos of receipts. Adding larger tips to restaurant receipt copies, purchasing items, submitting receipts for reimbursement and then returning them, purchasing business class seats, and then downgrading them to the economy once the expense has been processed are all examples of how legitimate purchases can turn into fraudulent expenses.

In two ways, giving employees corporate cards eliminates all of these possibilities. First, credit card bills are instantly imported, and the precise amount charged is always included, making it difficult for employees to falsify receipts. Second, reimbursements can’t be handled onto a different card than the one used for the purchase; workers can’t take advantage of any of these strategies.

Organizations should also include a language in their card policy stating that any unlawful purchases are the employee’s responsibility.

Collective Happiness

Another one of the most significant corporate card benefits that should be considered is employee satisfaction. Expenses for employees who travel regularly or need to book conferences can add up to thousands of dollars per month. It will be unnecessary for them to pay for products out of pocket if you provide them with a corporate credit card. This is especially critical for firms that only process 1-2 expenditure payment reimbursements per month since any delay in filing could result in travelers having to pay their credit card bills before being paid for their expenses.

Bottom Line

The message that corporate cards communicate to employees that the company trusts and cares about them is a less obvious but often equally important benefit of delivering corporate cards to employees. In an era where employee satisfaction is such a major topic for many businesses, this is a powerful incentive to explore implementing employee card systems.

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Corporate credit cards are cards that companies issue to their employees to carry out authorized business expenses on behalf of the corporation. With the help of corporate credit cards, employees can work more efficiently to avoid delays in decision-making related to essential business expenses.

With EnKash corporate credit cards, businesses can streamline their working capital and funds in one place. It also provides complete visibility of every single transaction. Additionally, EnKash corporate credit card system is a dynamic payments system that enables an automatic reconciliation process by comparing the company’s accounts payables with the bank statements to ensure that the transactions recorded in the business accounts have actually taken place and the details of the transactions are recorded accurately

Why are Corporate Credit Cards in India becoming important for Startups?

If you are a startup, EnKash corporate cards help your business grow. Corporate credit cards are an ideal solution to streamline all the business expenses in one place. Also, as a corporate card for startups, it enables the employees to take vital business decisions on time instead of waiting for approvals from the top management.

Even though corporate business cards to multiple employees for carrying out authorized business expenses empowers them to be quicker and more efficient, it can also lead to difficulties in managing and keeping track of business expenses effectively.

Also, with multiple employees accessing the company’s funds, the business runs a considerable risk of financial leaks. So to have complete control over the business finances, startups need to carry out timely corporate card reconciliation.

Advantages of Corporate Card Reconciliation

A corporate card reconciliation is a process by which a business can compare and track the transactions of the company’s ledger with the bank statements. The process allows the business to ascertain that the business funds are used to make only authorized payments.

With a corporate credit card reconciliation process, startups can detect accounting discrepancies, false filing of expenses, cases of double payments, or accidental payments to a vendor. All these factors can affect the business growth and, in worst cases, can lead to legal actions against the company itself.

A corporate credit card reconciliation process helps the company to track all the financial transactions by comparing accounting books, receipts, and other financial documents with the bank statement. But, the reconciliation process can be challenging if the company deals with many vendors. In addition, it is humanly impossible for someone to evaluate and detect all the financial discrepancies with 100% accuracy.

Disadvantages of manual corporate card reconciliation process

• Traditional bookkeeping is an inefficient way to maintain accounting records. Furthermore, accounting records manually updated are prone to errors, as employees can make faulty entries or accidentally make double entries for a single transaction.
• Though the employees are issued with separate corporate cards in India, most often, in cases of emergencies, employees end up sharing their cards with colleagues. This can sometimes lead to double entry by both employees or failing to update the business transaction completely.
• Also, the reconciliation process is expensive and time-consuming, as the company has to hire staff or outsource the work to a third party to examine the accounting books for an unbiased evaluation.
• The major problem with corporate business cards is the number of employees involved in the company finances. Many employees outsmart the company by not reporting the correct transaction amount to claim extra reimbursement. Without proper financial reporting, the business is at risk of financial leaks.
• Corporate cards for startups are made to help employees make authorized expenses. Still, if the employees are unclear about which costs fall under authorized business expenses, it can result in the company losing financial resources.

Managing and keeping track of business expenses manually using traditional bookkeeping methods can lead to miscalculations.

Additionally, keeping track of every transaction with accurate details helps in the corporate credit card reconciliation process. To have complete control over business spending, startups need to automate their business finances with dynamic expense management software.

Why do you need spend management software to track credit card usage?

An expense management software like EnKash corporate card expense management software enables start-ups to streamline all their business expenses in one place. It allows companies to manage, track, control, and examine business funds effectively.

With EnKash corporate cards for startups, businesses can analyze and evaluate where the company funds are being used. The expense management software records every single transaction automatically. Also, the software can reconcile your credit statements with your business accounting records with complete accuracy.

Why automate Corporate Credit Card Reconciliation process

The traditional methods of recording, analyzing, verifying, and managing the business funds and reimbursement process are prone to errors or biased evaluation. Automating the corporate credit card reconciliation process enables the business to control and evaluate the business finances digitally with just a few clicks.

The EnKash expense management software provides businesses with a better way to maintain their accounting records in one place with a multi-functional dashboard. The automation software records the details of transactions and uploads the virtual receipts accurately, which enables the company to avoid any discrepancies in the financial records.

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Corporate credit cards are issued by businesses to make authorized expenses on behalf of the company. A corporate credit card operates like a personal credit card. Corporate credit cards are a tool to make the business process effective and efficient. For example, an employee can make authorized payments with a corporate credit card like hotel bookings, airfare, etc.

But most notably, with the help of corporate credit cards, a company can streamline all its business expenses and have complete control over them. Having a corporate card is beneficial for both companies and employees.

Earlier, employees had to spend their own money for business expenses in case of emergency and wait for reimbursement, which took a while. The slow and extensive process of getting reimbursed puts a lot of pressure on the employees financially. A corporate credit card for employees takes the burden off the employees, as they can make any expense on behalf of the company as long as it is an authorized expense.

For companies, a corporate credit card acts as an essential financial tool as they can track all the expenses made from each card issued. Also, the company can set limits on the cards using the corporate credit card expense management tool to set an estimated budget for expenses every month. Corporate credit card solution reduces the risk of employees’ accidental spending and saves the company a lot of time and resources.

Why Corporate Credit Cards are important for SMEs and Startups?

Having a good credit score is essential in the long run for both Small and Medium Enterprises (SMEs) and Startups. If your record shows unauthorized expenses made that are deemed unnecessary on the accounting records, that might affect the credit score and ultimately impact your business.

If you have a business, whether a small or large corporation, you probably know keeping track of all the financial records without proper management tools is not humanly possible. And for SMEs and Startups, not having adequate control over expenses can affect the overall business growth if the company’s money is used for unofficial purposes.

Using corporate credit card management software you can get complete visibility and control over your company’s finances. For example, you can track the expenses and set limits on the cards to avoid overspending.

Below you will find some more benefits of having a corporate credit card for employees, so keep reading.

Benefits of Corporate Credit Cards for SMEs and Startups

A corporate credit card is a great financial tool for cash flow management. All the spending made on behalf of the company gets recorded using the corporate credit card management software, enabling the business to avoid gaps in the accounting records.

As a business owner, you can set limits on the corporate card issued to the employees. Thus, corporate credit card management software reduces the risk of accidental overspending by employees.

Having a bad credit score can negatively impact the business in the long run. Therefore, for SMEs and startups having complete control over the company’s working capital is a priority to keep their business afloat.

Using a corporate credit card reduces the risk of fraud. The cards are encrypted with a single sign-on making it impossible for hackers because the system gets alerted as soon as multiple tries are made to hack into the system.

With corporate credit cards, you can streamline business expenses in one place with an interactive interface that shows all the business transactions made in real time with additional analytics to boost your business.

Corporate credit card also provides you with rewards and cashback to encourage authorized business expenses.

Benefits of Corporate Credit Cards for Startup employees

A corporate credit card comes in handy for employees while making customary B2B transactions.

In addition, unlike earlier, the financial burden where employees had to spend from their own pockets to incur business expenses and then get reimbursement from the company has been lifted. This makes the employees more productive while taking important business decisions about spending money.

Now the employees can make payments instantaneously from the corporate card issued to them, which is a more effective and speedy process.

A corporate credit card for employees can encourage employees to work more efficiently. They can avoid any delay in decision-making on whether or not to make the necessary expenses.

Importance of Corporate Credit Card expense management

For businesses, issuing corporate cards to their employees has excellent benefits, but it can also create certain problems. Problems like unethical use of business money for personal use, accidental spending, or overspending on tools and resources that are not a priority.

Thus, having corporate credit card management software to monitor and control expenses is highly significant to the overall growth of the corporation. With a corporate card, you can track, record, and manage all your expenses effectively in one place. Also, implementing corporate credit card management software reduces the risk of fraud or unethical practices to a great extent.

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How Can Business Owners Make Use of Revolving Line of Credit?

Whether you’re an individual or a business owner, there are times when we need funds at short notice – there is an urgent need to spend, whether it be on an emergency or an opportunity that has cropped up. Dipping into savings is one way to deal with it but you need to wait for the savings to be replenished before venturing out again. For business owners, cash flows often remain in deficit as customer payments come in late and billing cycles aren’t flexible. All of this adds on to the need for additional funds which only grows exponentially by the end of the month.

This is where a revolving line of credit (RLC) comes to the rescue, especially for small businesses. An RLC is a flexible loan with a predetermined amount from a bank or financial institution. Similar to credit cards in some cases, these are funds that can be used as and when the need arises while users can pay them back either in installments or lump sum.

What is a revolving line of credit, and how does it work?

Borrowers with a revolving line of credit have access to a specific amount of cash that may be borrowed, repaid, and borrowed again. This feature makes revolving lines of credit an appealing alternative for individuals and organizations looking to pay recurring bills and manage cash flow.

A credit limit, which is the maximum amount a borrower may spend on the account, gets assigned to you as a borrower, which is a fixed quantity of cash. Your balance grows as you spend more on the revolving credit account. You’ll create a transaction history, and after the billing cycle, all of your charges will appear on your statement.

If you pay off the revolving credit amount debt in full and on time after the billing cycle, you’ve settled the account and can utilize the whole credit limit again the next billing cycle.

The minimum payment can be a fixed sum or a percentage of the entire amount borrowed; specifics are available in your revolving credit agreement. Newly issued credit cards or lines of credit may offer promotional rates, such as a 0% APR during the introductory period.

How does RLC differ from personal loans and credit cards?

Although similar, a revolving credit line differs from the rest in many ways. For instance, virtual cards generally have a higher interest rate than those of a credit line. In case of credit cards, you’re only able to use the funds for purchases or payment of bills. A revolving line of credit, on the other hand, gives you the freedom to withdraw funds into your bank account without paying any extra fees.

The alternative of taking a short-term bank loan may not be feasible especially when the need for funds isn’t high enough. If you can pay the borrowed amount in a month or two, a revolving line of credit is the better option.

Today, many financial institutions provide revolving lines of credit should you need one. For small business owners, opening a credit line is much easier and faster than taking a loan from a bank. That being said, knowing the lender is as important as knowing how much you want to borrow. A revolving credit can be a boon if used wisely.

Advantages and Disadvantages

Below are some of the pros and cons of opening a revolving credit line.

Pros:
1. Flexibility – use it for purchases, bill payments and even bank withdrawals.
2. Interest payments – pay interest only on the utilized amount.
3. Increase credit score – by repaying your loans on time, you can increase your credit score which in turn will enable your eligibility for higher loans in the future.

Cons:
1. Addition of fees – Although the interest rate is lower than traditional credit cards, multiple credit withdrawals in a year can lead to a higher accumulation of fees paid.
2. Debt trap – It is very easy to fall into a debt trap if carefully considered. By paying only the minimum amount or a lower EMI, it is tempting to open more credit lines that give away your additional cash.

Like every financial instrument out there, revolving lines of credit are introduced to make lives easier. These lines of credit can be extremely cost-effective when used after thorough consideration and on the other hand, they can spell financial trouble if there is an excessive borrowing pattern. It is imperative to pay attention to the terms of the credit line by the institution, especially the fees, interest rate and repayment schedule.

How Can Business Owners Make Use of RLC?

Revolving lines of credit are appropriate for seasonal firms or businesses with fluctuating sales. If your company has high and low sales seasons or a gap between finished work and payment, a revolving line of credit may be useful in bridging the gap.

For example, if your company receives a large order and has to acquire goods to fulfill it, a revolving line of credit might be an excellent method to fund procurement of the goods needed.

In the following sections, we’ll look at the benefits and drawbacks of a revolving credit line. You can decide if this is the best funding choice for your company by assessing the advantages and downsides.

The Bottom Line

The benefits of a revolving line of credit account are especially applicable to firms with short-term fund demands; if you routinely have urgent funding needs, this may be your best alternative. Of course, there are always drawbacks, such as those discussed in this blog. We hope that after reviewing our list of benefits and drawbacks, you can better decide whether a revolving line of credit is ideal for your company.

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