3 Common Misconceptions About Corporate Cards
We’re here to clear the air on some of the most common misconceptions around corporate cards so you can spend smarter and scale. 🚀
April 12, 2022
It’s no secret that difficulty accessing corporate funds is a common challenge for many startups in Canada. Whether you can’t seem to get enough funds for your growing team or are unable to get approved for credit, it’s not as daunting as it seems. We’re here to set the record straight with the answers you need.
Myth #1: All corporate cards are the same.
Not exactly true. Purchase rates, card limits and annual fees typically vary between banks and financial institutions. For example, most banks take two to three weeks to approve a credit card application – and that’s with a 19.99% purchase rate and a $120 annual card fee. 😕 Float captures this entire process in just three days – no purchase rate or annual card fee required. With a physical or virtual Float card also comes an automated spend management software that allows for easy receipt collection, expense tracking, accounting sync and more. And, you get 1% cashback on all your purchases. So, to say that all corporate cards are the same just isn’t true! 🙅🏻♂️
Myth #2: Startups are not allowed to get corporate cards.
Getting approved for a corporate card as a startup is no easy feat. The application process isn’t always kind to new businesses due to a lack of experience, credit history and collateral. And most of the time, banks aren’t willing to budge and give out credit cards because of this perception of risk. If they do decide to give them out, it’s usually with lengthy and expensive terms and conditions that could impact company financials in the long run.
We know that businesses run smoothly when everyone in the company has access to corporate funds to get their jobs done. So if you’re having trouble getting enough corporate cards for your growing team, Float’s prepaid corporate cards are a great alternative to take the stress away. 💳 The application process is simple and there’s no personal guarantees. All you need as a company is an active business bank account and you can issue and fund as many corporate cards as you need in a matter of days! 💨
Myth #3: A personal credit card is a good alternative to a corporate credit card.
Wrong! 🚫 Putting your personal and business expenses on a single credit card is a common error many companies make. As a founder, sharing personal credit card information with employees can result in unauthorized transactions and increase chances of fraud. The same goes for employees who use their personal cards for business-related purchases. While it might seem like a good alternative if you can’t get approved for credit, it’s actually extremely inefficient, not secure and makes expense management more complex than it needs to be.
Ready to get a corporate card that lets you scale? Book a demo with Float today to learn how we can make this process easier for you as you grow and scale.
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