Corporate credit card switch: Key considerations for growing businesses

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Corporate credit card switch: Key considerations for growing businesses

Research

Jordan Waller Managing editor | The Points Guy

By Sky Industry News

Jan 31, 2025

As small businesses grow, transitioning to a corporate credit card may become a necessity. Such cards can offer enhanced expense management and relieve owners of personal liability. However, the process involves meeting specific criteria and providing detailed financial information.

Business owners considering this shift should be prepared to share financial data with issuers. Not all businesses qualify for corporate credit cards; some issuers require minimum revenue benchmarks and an established business credit score. "American Express, for example, requires your company to have grossed more than $4 million in the previous fiscal year — and you can't be classified as a sole proprietorship."

Issuers typically ask for recent audited financial statements, company structure details, tax information including a federal tax ID, and contact information for an authorizing officer.

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For startups not meeting these thresholds, alternatives like the Brex Corporate Card could be considered. The card aims to improve accessibility using innovative underwriting standards. Additionally, options such as the BILL Divvy Corporate Card provide no-annual-fee business cards with reward bonus categories.

A key advantage of corporate cards is limiting personal liability. With small-business cards requiring a social security number and holding applicants personally responsible for payments, shifting to corporate cards can ensure that companies are responsible for debts instead.

Corporate accounts are also suggested if employee card numbers approach 100 or if advanced expense management tools are needed. These tools allow integration with general ledgers to reduce manual entry and enable monitoring of individual employee spending by category.

While rewards on corporate cards might not match those of small-business cards in terms of lucrativeness, they do offer flexibility in distribution through programs like American Express's Membership Rewards.

Overall, qualifying businesses may find it beneficial to explore corporate credit cards for liability protection and enhanced tracking capabilities as their operations expand.