Ways a Corporate Card Can Streamline Business Expenses

As your business grows and transactions multiply, keeping a close watch on your business expenses becomes a challenging task. However, just as you have opened a separate business account for your small and medium-sized enterprise (SME), you must also have a separate corporate credit card or debit card. This is where corporate cards emerge as powerful tools that not only facilitate financial transactions but also streamline business expenses in remarkable ways.

Corporate cards, also known as corporate credit cards, corporate business credit cards, corporate debit cards, or corporate expense cards, are specialised payment tools issued by financial institutions to facilitate business-related expenses. They help SMEs achieve financial efficiency and control through the following ways:

1. Enhancing Transparency Over Spending

One of the core challenges that small and medium-sized businesses face is tracking and understanding their spending patterns. Corporate cards address this concern by providing real-time insights into company expenditures. With sophisticated expense tracking systems, these cards categorise expenses, making it easier for businesses to identify where their money is going. This transparency fosters better financial decision-making, as companies can spot areas where spending could be optimised or reduced.

2. Streamlining Expense Reporting and Reimbursement

Traditional expense reporting and reimbursement processes can be cumbersome and time-consuming. Employees often struggle to compile paper receipts and fill out lengthy forms while finance teams grapple with reconciling multiple transactions. However, corporate cards transform this scenario by automating the process. Employees can simply use their corporate cards for business-related expenses, and the transaction data is automatically recorded. This streamlined approach reduces the administrative burden on both sides and accelerates the reimbursement cycle.

3. Simplified Vendor Payments and Negotiations

Successful vendor relationships rely on prompt and accurate payments. Corporate cards simplify this aspect by enabling swift and secure payments to vendors. In addition, the detailed transaction records provided by corporate cards can serve as valuable negotiation tools. Businesses armed with accurate spending data can negotiate better terms and discounts with vendors based on their consistent business volume. This not only leads to cost savings but also strengthens your SME’s relationship with vendors.

4. Efficient Budget Management and Control

Maintaining budgetary discipline is crucial for any business’s financial health. Corporate cards empower businesses with better control over their budgets. By setting spending limits on individual cards, companies can ensure that employees adhere to predefined budgets. However, it’s important to note that your company should also have a written policy or entire manual regarding business and the proper use of corporate cards. This proactive approach in business expense management prevents overspending and aligns expenditures with the company’s financial goals.

5. Maximise Savings with Cashback Rewards

Different corporate credit card providers offer varied perks and rewards that can benefit both your company and employees. Be sure to do your research and read the fine print: some corporate cards may advertise a very attractive cashback percentage but impose maximum caps on cashback for card spending, or restrict cashback earnings to specific merchants or merchant categories.

Partner with Validus as a Trusted Corporate Card Partner

What’s great about applying for a business account for your startup or medium-sized enterprise with Validus is that you can also issue unlimited corporate cards for free. We know that selecting the right corporate expense card provider is a critical decision that directly impacts a business’s financial efficiency. That’s why we offer corporate cards tailored to the needs of Singaporean SMEs.

You don’t have to constantly apply for separate credit cards for your employees and wait months for them. With Validus, you can issue unlimited corporate expense cards with no hassle and hidden fees. Once you and your employees receive our corporate cards, you can easily track and monitor your company and employee expenses in real-time. You can set spending limits, define approval policies, and access a comprehensive spending report.

Moreover, we alleviate the hassle of the reimbursement process as our corporate expense cards allow for direct payment of business expenses. With this, employees no longer have to use their personal funds and process a reimbursement claim.

Your business will also benefit from significant savings with an unlimited 1% cashback on all online and offline corporate card spend, without any restrictions on merchants or merchant categories.

Learn more about growing your SME with our essential financial strategies for SME expansion and guide on how to attract and retain talent.