Corporate Card: Definition, How it Works & Benefits for Startups

Corporate card is a card that can help companies to track, control, approve expenditures automatically and can be synchronized with your company’s accounting software. Therefore, the function of this card is not just a means of business payment transactions.

A corporate card can be an option to empower employees and provide flexibility in using company funds while controlling every expense that occurs.

What is Corporate Card?

Jack Corporate Card

A corporate card is a card that functions as a business payment transaction and is intended for employees. For example, a business credit card that is used for daily business expenses.
The corporate credit card provides flexibility when employees make purchases on behalf of the company. Employees no longer need to use their personal funds and apply for time-consuming reimbursements.
This card can cover expenses for business trips, subscription payments, hotels and other needs. Expenditure monitoring becomes more efficient and effective because everything can be controlled properly.
After having a basic understanding of what a corporate card is, then we will discuss the types of corporate cards and the benefits that can be obtained for your business.

Type of Corporate Card

There are two types of corporate cards, namely debit and credit. Corporate credit cards function for issuing company credit with business credit lines that can fund business operational activities.
Credit payment history can affect credit scores, assist businesses in making loans or seeking additional funds for business capital.
Corporate debit cards are used as business payments without a credit score. This card can only work when the balance is available or you top up the balance.
The use of a corporate debit card provides more visibility and control over business expenses.

Is a corporate credit card the same as a credit card in general?

Corporate credit cards are different from credit cards that are commonly found. The difference is that this card is intended for business transactions.
But that doesn’t mean you can’t use a regular credit card for business purposes. Regular credit cards can also be used for business transactions.
However, the features and rewards and other benefits are not as complete as those offered by corporate credit cards. This is because corporate credit cards function for specific business purposes, created to meet and answer business needs with a more complete range of features and benefits.

How Corporate Cards Work in Indonesia

The way a corporate card works is the same as a personal credit or debit card which can be used to make payments for offline and online stores. The difference is, corporate cards are equipped with features needed by businesses while personal credit cards are not.
For example, the corporate card owned by your business will be connected to the expense management dashboard to assist in reviewing and controlling card usage.
Employee purchases can use the company name through the credit card. Not a few providers that offer corporate cards in Indonesia provide flexibility of choice for users.
After the card is made, the card can be issued to employees and monitoring of expenses made can also be carried out. At the end of the payment cycle the business will be asked to pay your credit card balance.

Advantages of Using a Corporate Card

Some of the features available from corporate cards are that they can save company funds either because of rewards/cashback or interest-free credit line services and others.
Know the various features available and have various advantages that are easy to manage business transaction activities.

1. Real-time tracking

Expense tracking and monitoring is necessary to keep track of and maintain business expenses.
Details of the reasons for spending such as when, where and how much money is spent are important for business growth and audit purposes.

2. Persetujuan cepat

Jack provides a hassle-free line of credit that can be applied for online.
The smooth approval process helps companies use credit instantly for all expenses and transfer money through corporate cards.

3. Real-time reports

Jack provides a hassle-free line of credit that can be applied for online.
The smooth approval process helps companies use credit instantly for all expenses and transfer money through corporate cards.

Every business expense should have a real-time expense report. This is so that the business inventory is well managed and the overall financial condition of the company is known through accurate financial reports.

4. Build a business credit score

The use of a business credit card is a part that needs attention because it can help build a credit score for your business.
Credit scores, such as timely payments help build a good reputation for future use of business loans.

5. Simplify vendor management

Have a specific virtual card for recurring and vendor payments and help streamline financial management work.
Have a virtual card for special vendor payments by attaching all proof of payment. Minimize possible errors and make financial analysis faster.

6. Separation of business expenses

Separating business and personal expenses and using a corporate card is the right choice.
Business owners usually tend to use personal credit cards for business purposes. This can impact credit scores and hinder businesses from establishing creditworthiness.

Important Factors in Choosing a Corporate Card

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1. Real-time visibility

All transactions made through a corporate card can be recorded and updated automatically on your dashboard. Gives the finance team visibility into controlling, checking and taking action when there are suspicious transactions.
The amount of funds used day by day will appear to make changes to the budget if needed.

2. Mobile applications

Access will be even easier if a mobile application is available to help manage expenses. It’s simple to submit card expense reports and approvers can review requests on the go.
Manage expenses better with levels, higher comfort and reduce the burden on your employees.

3. Rewards and cashback

Corporate credit cards with rewards and cashback, can be used to save company money when traveling on business. Rewards given are usually in the form of points.
The point program can be used to make return trips and cashback can be in the form of discounts when making vendor payments in advance.

4. Interest-free lines of credit

Not all corporate cards are providing this service, only a handful. There are providers who provide interest-free credit services for a certain period of time or even offer completely interest-free credit. If you want to get this facility, make sure the provider doesn’t ask for a personal guarantee.

5. Easy to access and use

There are multiple priorities for business owners and executives including ease of use and access.
Various options are provided by providers with a simple digital application process, simple card settings and integration will streamline management.

6. Transactions abroad

Carrying a corporate card when traveling internationally or for entertainment needs is necessary, especially when the intensity of trips abroad is frequent.
Choose a provider that offers payment by card which is equipped with various foreign currency facilities and the lowest fees.

How to Get a Corporate Card

Corporate cards can be obtained when a business meets several requirements such as business legality, certain licenses or personal identity. In simple terms, to fulfill the corporate card requirements, prepare several documents such as company establishment deed, letter of approval from the Indonesian Ministry of Law and Human Rights, SIUP and NPWP.
Some providers require financial reports such as balance sheets and income statements for a certain period and other special licenses if needed. Apart from that, making corporate cards for providers also requires looking at the business profile when submitting a card making application.
A good credit score is also needed when you want to apply for the card. If all the requirements are felt to be met, then prepare the relevant documents to start submitting the registration. If you are still unsure about fulfilling the requirements, you should consult with the relevant provider.

Why Should You Use ItsJack Corporate Card?

Interestingly, the Jack corporate card is able to help improve the management of cash flows and company expenses that are more specific with various benefits that can be enjoyed.

1. Easy to do tracking

All transactions made can easily be clearly recorded through the use of a corporate card. Employees will be more careful when making transactions because all expenses are properly monitored.
Of course, this provides a positive side in order to minimize the possibility of fraud. All transactions can be monitored and each employee is responsible for the expenses made.

2. Fast growing business

Business financial funding can be obtained from various sources. One of them is through a corporate credit card, this is because businesses often spend a lot of money to make money, including profit.
Get quick funding alternatives to keep your business running. Grow your business quickly through the ease of obtaining funds without the need to apply for a loan with collateral or other complicated requirements.

3. Integration of accounting software

After all expenditure data is recorded on the platform, then you can easily synchronize it using Jack. Our integrations work with Journal, Xero, Quickbooks and NetSuite.
Transferring data from Jack’s ledger is not a problem because it can be done easily to your company’s ledger. Make closing the books can be done quickly.

4. Flexible for business

Corporate cards are designed to meet the needs of businesses and employees to make regular payments. Complicated procedures, waiting for a long time for approval or scattered proof of payment can be overcome.
When deciding to partner with Jack there is flexible credit. There is no fixed credit threshold, but we check the financial health and stability of your company to grant a credit amount.

5. Flexible lines of credit

You can get an interest-free and unsecured line of credit when you choose Jack’s corporate card. Moreover, credit is needed along with business growth.
Also have the flexibility of payment cycles which means you can choose which one best suits your business cash flow.

6. Card according to brand

With Jack, you can order a corporate card using the company’s name and branding language.
Enjoy customization services on the cards ordered and get an exclusive and premium feel for your business. Start using cards that match your business identity.

7. Mobile app

Cards that can be connected to the dashboard can help you control and review expense records.
Of course, it would be more convenient if it could also be easily accessed via a cellphone.
Jack’s mobile app helps you review the submission and submission of expense reports by employees.

8. Manage expenses

Set limits for each expenditure made so that budget leaks do not occur and keep cash flow positive.
The use of corporate cards is complemented by a multi-level spending approval policy.
The approver can approve it easily and the use of funds is in accordance with the stipulation of the budget.

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