Start-ups need sufficient liquid funds to meet their financial obligations and requirements. Whether it is to pay vendors, purchase raw materials and office supplies, or meet working capital needs, these funds are essential.
Being a new business, a Start-up might not have accessible funds at its disposal. Raising a business loan can prove challenging, especially with a negligible credit score. In these situations, a corporate credit card can prove to be an ideal solution. Moreover, should the card be secured, the Start-up can get it easily, even without a credit score.
Let us understand just what a corporate card is and how it helps.
Also read: The best credit card for self-employed individuals: A detailed guide
Start-ups new to credit can build their credit score with their corporate card. It would establish a line of credit, and if the bills are paid regularly, the Start-up can build a good score.
With easy access to preapproved credit, Start-ups can manage their cash flow with a corporate credit card. They can use the card for credit transactions if they are short on funds.
The credit limit on a corporate card gives Start-ups access to capital for their funding needs, be it for the short or long term.
The reward program of business credit cards allows for additional benefits. Start-ups can earn reward points on their transactions and accumulate and redeem them when and where relevant. Redemption offers on a corporate card can include merchandise, discount vouchers, credit setoffs in the bill, etc.
Many cards come with a liability protection cover that safeguards against fraudulent activities should the card be stolen and misused.
With a monthly generated credit card bill, a Start-up can keep track of all relevant business expenses easily and manage its finances accordingly.
IDFC FIRST Bank's Business Credit Card for Start-ups
IDFC FIRST Bank offers Business Credit Card for Start-ups. This card features all of the benefits discussed, including:
· Early-Stage Start-ups can avail 100% credit limit against Fixed Deposit while Growth-Stage Start-ups can avail unsecured credit limit basis eligibility with our Corporate Liability Card
· 4X Reward Points on spends like cloud services, digital marketing, etc. and 10X Reward Points on international spends in foreign currency
· Industry lowest interest (%APR) starting from 15% p.a.
· Basis repayment history, enhance credit limit up to 125% of the deposit
Comparison |
Bank A |
Bank B |
Bank C |
Bank D |
IDFC FIRST Bank |
Joining Fee per card |
₹ 2,000 |
₹ 250 |
₹ 5,000 |
₹ 1,000 |
₹ 499 |
AMC per card |
₹ 1,000 |
₹ 500 |
₹ 5,000 |
₹ 1,000 |
₹ 999 |
Card Limit to FD Value |
80% |
80% |
90% |
90% |
100% |
Step-up unsecured limit |
NA |
NA |
NA |
NA |
Upto 25% post 9 settlement cycle |
Starting interest rate (APR) |
36% |
36% |
42% |
39% |
15% |
Reward Points |
1.5X Reward on all Transactions |
2X Reward on all Transactions |
1X Reward on all Transactions |
2X Reward on all Transactions |
4X Reward Points on spends like cloud, digital marketing, etc. and 10X Reward Points on international spends in foreign currency |
Credit Period |
48 Days |
50 Days |
30 days |
30 days |
48 Days |
FX Markup Fee |
2% |
3% |
3% |
3.50% |
2% |
Also read: Beyond funding: How can startups benefit from IDFC FIRST WINGS?
Conclusion
A Start-up's horizons can expand exponentially with the application of a company credit card and the many benefits it unlocks. Choose IDFC FIRST Bank's business credit card and avail of its enhanced benefits and attractive rewards program. Enable business growth with preapproved credit to help build up a Start-up's credit score.
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.