{"id":26813,"date":"2019-04-29T09:39:01","date_gmt":"2019-04-29T01:39:01","guid":{"rendered":"https:\/\/zegal.com\/?p=26813"},"modified":"2023-10-30T19:25:00","modified_gmt":"2023-10-30T11:25:00","slug":"company-credit-cards-vs-corporate-expense-cards","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-hk\/blog\/post\/company-credit-cards-vs-corporate-expense-cards\/","title":{"rendered":"Company Credit Cards vs. Corporate Expense Cards"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"745\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/banking-card-credit-card-1332191-1024x745.jpg\" alt=\"\" class=\"wp-image-26820\" srcset=\"https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/banking-card-credit-card-1332191-1024x745.jpg 1024w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/banking-card-credit-card-1332191-300x218.jpg 300w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/banking-card-credit-card-1332191-768x559.jpg 768w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/banking-card-credit-card-1332191-640x466.jpg 640w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/banking-card-credit-card-1332191-1200x874.jpg 1200w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/banking-card-credit-card-1332191-1920x1398.jpg 1920w\" sizes=\"auto, (max-width: 639px) 98vw, (max-width: 1199px) 64vw, 770px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-company-credit-cards-vs-corporate-expense-cards-which-is-right-for-your-business\"><span class=\"ez-toc-section\" id=\"Company_Credit_Cards_vs_Corporate_Expense_Cards_Which_is_right_for_your_business\"><\/span><span style=\"font-weight: 400;\">Company Credit Cards vs. Corporate Expense Cards: Which is right for your business? <\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><span style=\"font-family: tahoma, arial, helvetica, sans-serif;\">&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Here\u2019s a familiar story: <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">You\u2019re running a young business. You have a few expenses here and there \u2013 purchasing a web domain, getting started with WordPress, and the like. You simply use your own personal credit card and then expense it \u2013 easy. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Business is going great, and you\u2019re starting to scale. But now, every week you\u2019re passing out your personal credit card to different members of your team and collecting receipts. Your accounting at the end of the month involves a lot of detective work, trying to figure out which expenses, out of the sea of personal purchases, are actually for your business. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">It\u2019s time to get a business card.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">At this point businesses typically look into getting some sort of company credit card or even a <\/span><a href=\"https:\/\/www.neat.hk\/blog\/5-benefits-of-using-corporate-expense-cards\"><span style=\"font-weight: 400;\">corporate expense card<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">While they both can be used in similar ways, these two cards are fundamentally different. Depending on your business (size, growth, financial circumstances) one might be better suited than the other. Today we\u2019re comparing them head to head, to help you evaluate which one is right for your business. <\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-company-credit-card\"><span class=\"ez-toc-section\" id=\"The_Company_Credit_Card\"><\/span><span style=\"font-weight: 400;\">The Company Credit Card<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Company credit cards are often the go-to business card for many entrepreneurs. <\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-pros\"><span class=\"ez-toc-section\" id=\"Pros\"><\/span><span style=\"font-weight: 400;\">Pros<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><b>Credit cards offer rewards. <\/b><span style=\"font-weight: 400;\">Many credit card companies have very attractive reward incentives for signing up and using their card, <a href=\"https:\/\/www.dontpayfull.com\/explore\/glossary\/cashback\" class=\"ek-link\">such as cashback<\/a>, air miles, and even shopping\/dining discounts. <\/span><\/p>\n\n\n\n<p><b>You can build your credit score. <\/b><span style=\"font-weight: 400;\">The more you use your credit card and pay your expenses on time, the better your business credit score will be. This will make it more advantageous in the future if you choose to apply for loans since a higher credit score typically means an easier time getting approved and lower interest rates.<\/span><\/p>\n\n\n\n<p><b>Credit cards offer financial padding. <\/b><span style=\"font-weight: 400;\">At the end of the day, the essence of a credit card is money that you can use now, and pay back later. So when sales are slow or payments are late, with credit cards, you have some extra financial padding if you need it.<\/span><span style=\"font-family: tahoma, arial, helvetica, sans-serif;\">&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-cons\"><span class=\"ez-toc-section\" id=\"Cons\"><\/span><span style=\"font-weight: 400;\">Cons<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><b>There can be potential for card misuse.<\/b><span style=\"font-weight: 400;\"> If you lose your card or someone gets ahold of your card number, people could be making purchases with your credit&nbsp;\u2013&nbsp;a.k.a. money that is not yours and you may not have. In some cases, you may not even notice the misuse. Chargeback cases are complicated and often take months to resolve. <\/span><\/p>\n\n\n\n<p><b>You can only track what people have spent after they&#8217;ve spent it<\/b><span style=\"font-weight: 400;\">. If your policies and rules around budgets and expenses aren\u2019t clear (as is often the in small businesses), it can be easy for employees to spend more than what you\u2019d originally expected. This might make it difficult to forecast and adhere to budgets you want to follow.<\/span><\/p>\n\n\n\n<p><b>There may be barriers to getting qualified.<\/b><span style=\"font-weight: 400;\"> For the most part, credit card companies want your business. However, if you\u2019re running a young business, that\u2019s when you can run into some <\/span><a href=\"https:\/\/www.neat.hk\/blog\/company-credit-cards-complicated\"><span style=\"font-weight: 400;\">difficulties<\/span><\/a><span style=\"font-weight: 400;\">. Some require companies to have been running for a certain amount of time or have a certain amount in annual revenue to qualify. Another complication can come if you\u2019re not a resident of the country that your credit card is issued in (but you do business there). For example, if you\u2019re doing business in Hong Kong, you must often be a Hong Kong resident to get a credit card.<\/span><\/p>\n\n\n\n<p><b>It can potentially impact your personal credit. <\/b><span style=\"font-weight: 400;\">For small businesses, sometimes banks require business owners to provide a personal guarantee \u2013&nbsp;meaning that if the business for some reason can\u2019t pay off the debt, you promise to pay it. This puts the additional risk on you personally.<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/bank-banking-blue-50987-1024x683.jpg\" alt=\"company credit card\" class=\"wp-image-26827\" srcset=\"https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/bank-banking-blue-50987-1024x683.jpg 1024w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/bank-banking-blue-50987-300x200.jpg 300w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/bank-banking-blue-50987-768x512.jpg 768w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/bank-banking-blue-50987-640x427.jpg 640w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/bank-banking-blue-50987-1200x800.jpg 1200w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/bank-banking-blue-50987-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 639px) 98vw, (max-width: 1199px) 64vw, 770px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-corporate-expense-card\"><span class=\"ez-toc-section\" id=\"The_Corporate_Expense_Card\"><\/span><span style=\"font-weight: 400;\">The Corporate Expense Card<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Corporate expense cards are prepaid debit cards for businesses and a solution that FinTech companies are innovating on.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-pros-1\"><span class=\"ez-toc-section\" id=\"Pros-2\"><\/span><span style=\"font-weight: 400;\">Pros<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><b>You won\u2019t go into debt.<\/b><span style=\"font-weight: 400;\"> Any purchases you make using an expense card are<\/span> using the <span style=\"font-weight: 400;\">money you already have. There\u2019s no borrowing involved, meaning you\u2019ll never rack up any interest, late fees, or over-limit charges.<\/span><\/p>\n\n\n\n<p><b>You have greater control over how much can be spent. <\/b><span style=\"font-weight: 400;\">Since you need to first load up your card with money, you can set firm budgets for spending. If you decide that $500 is your budget, then you can top up the card with $500, and not a penny more can be spent.<\/span><\/p>\n\n\n\n<p><b>You can manage your card through an app. <\/b><span style=\"font-weight: 400;\">Today, many modern corporate expense card solutions come with mobile apps that help you to keep track of everything through your phone. These apps typically allow you to top up your card, see recorded transactions, add receipts and even freeze your card if you lose it.<\/span><\/p>\n\n\n\n<p><b>You can get cards for all employees, with fewer barriers to entry. <\/b><span style=\"font-weight: 400;\">Prepaid cards often do not have minimum revenue requirements; even if your company does qualify for a corporate credit card, you can often only get one for the entire company. Expense cards, on the other hand, allow you to offer cards to any employee that needs them. This can be convenient for employees who often need to make expenses, for example during business trips.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-cons-1\"><span class=\"ez-toc-section\" id=\"Cons-2\"><\/span><span style=\"font-weight: 400;\">Cons<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><b>They\u2019re not as widely accepted<\/b><span style=\"font-weight: 400;\">. Normally to vendors, there isn\u2019t much difference between a credit card and prepaid debit \u2013 that being said there are some merchants that don\u2019t accept prepaid cards. <\/span><\/p>\n\n\n\n<p><b>You have to remember to top up funds. <\/b><span style=\"font-weight: 400;\">With expense cards, you have to regularly remember to top it up <\/span><i><span style=\"font-weight: 400;\">before<\/span><\/i><span style=\"font-weight: 400;\"> you use it&nbsp;\u2013&nbsp;otherwise, you\u2019ll have nothing to spend. If you\u2019re using your card very regularly, you\u2019ll need to top it up in large amounts or remember to do it more frequently. <\/span><\/p>\n\n\n\n<p><b>It can be difficult to recover funds if you lose your card. <\/b><span style=\"font-weight: 400;\">When it comes to a corporate expense card, your funds aren\u2019t being used for a bank\u2019s financing \u2013&nbsp;which sometimes means there is less incentive to recover your money.<\/span><\/p>\n\n\n\n<p><span style=\"font-family: tahoma, arial, helvetica, sans-serif;\">&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-find-the-right-type-of-card-for-your-business\"><span class=\"ez-toc-section\" id=\"Find_the_right_type_of_card_for_your_business\"><\/span><span style=\"font-weight: 400;\">Find the right type of card for your business<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">For younger businesses, choosing one or the other will typically do everything you\u2019ll need it to. Of course, as you start to grow, there\u2019s nothing stopping you from getting both solutions.<\/span><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft\"><img loading=\"lazy\" decoding=\"async\" width=\"200\" height=\"200\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/elizabeth-headshot.jpeg\" alt=\"\" class=\"wp-image-26814\" srcset=\"https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/elizabeth-headshot.jpeg 200w, https:\/\/zegal.com\/wp-content\/uploads\/2019\/04\/elizabeth-headshot-150x150.jpeg 150w\" sizes=\"auto, (max-width: 639px) 98vw, (max-width: 1199px) 64vw, 200px\" \/><\/figure>\n<\/div>\n\n\n<p><span style=\"font-family: tahoma, arial, helvetica, sans-serif;\"><br><\/span><em><span style=\"font-weight: 400;\">Elizabeth Ching is the PR &amp; Content Manager at <a href=\"http:\/\/www.neatcommerce.com\">Neat,<\/a> a modern alternative to banks, built for entrepreneurs, startups, and SMEs. With every Neat Business account, we offer corporate expense cards that can work in tandem with a simple app on your phone.<\/span><\/em><\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/common-mistake-by-startups\/\">READ MORE: 21 Most Common Business Mistakes Every Startup Makes<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/cfo-redefined-in-the-gig-economy\/\">READ MORE: CFO Redefined in the Gig Economy<\/a><\/p>\n\n\n\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Company Credit Cards vs. Corporate Expense Cards: Which is right for your business? &nbsp; Here\u2019s a familiar story: You\u2019re running a young business. You have a few expenses here and there \u2013 purchasing a web domain, getting started with WordPress, and the like. You simply use your own personal credit card and then expense it [&hellip;]<\/p>\n","protected":false},"author":53,"featured_media":26820,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"categories":[50],"tags":[7014,7013,10307],"usecases":[13702],"businesstypes":[13701],"country":[],"class_list":["post-26813","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cash-flow","tag-small-business","tag-start-up","tag-z-syndicate","usecases-uncategorised","businesstypes-uncategorised"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Company Credit Cards vs. Corporate Expense Cards | Zegal Hong Kong<\/title>\n<meta name=\"description\" content=\"When starting a business, should you choose company credit cards or corporate expense cards, or both? 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