5 Strategies For Cost Reduction in Procurement To Improve Bottom Line

Travel and expense management is crucial for ensuring that business-related travel expenses are kept in check. However the accurate collection and reporting of all travel-related expenses pose a significant challenge.

As the person in charge of managing your organization's finances, you should be obsessed with making all expense management as efficient as possible in order to save money.

But how can you simplify the travel and expense management process when there are so many moving parts and people involved? By using the right tools for the job.

In this guide, you’ll learn the importance of having a good travel and expense management policy, how to make your T&E management more efficient, and what to look for in travel and expense management software.

What is travel and expense management?

Travel and Expense (T&E) management is the process companies follow to monitor and control business travel expenses. T&E management is vital as it affects the company's financial well-being directly by ensuring all travel-related expenses are tracked for tax deduction purposes.

T&E management involves tracking and controlling expenditures such as flights, accommodation, meals, and client entertainment. Effective T&E management ensures that these costs are necessary, reasonable, and aligned with the organization's policies and goals. This management is particularly vital as travel and entertainment expenses can quickly accumulate and become significant financial commitments for businesses.

Why is travel and expense management important?

As a finance professional, you know that cost management and expense reduction are crucial aspects of financial management work. One of the ways you can do this is by tracking all deductible expenses for tax reduction purposes.

And when it comes to the hierarchy of expenses you need to keep track of, those related to corporate travel and entertainment are of particular importance.

According to Mastercard, corporate travel and entertainment expenses have become the second-highest expense category.

But not only does T&E account for a large portion of the business expenses that companies have to deal with, but it’s also been identified as the second most difficult operating cost to control.

That’s why it’s so important that your organization develops and maintains effective T&E management policies, and uses the tools available to simplify T&E management.

The challenges of travel and expense management

Managing travel and expense (T&E) can be a complex task, often fraught with a range of challenges. These challenges can significantly hinder the efficiency and effectiveness of an organization's T&E process. Key challenges include:

1. Limited Fund Access: Employees often face constraints in accessing funds for travel-related expenses, which can lead to delays and complications.

2. Security Risks: The management of expenses, especially in a digital format, raises concerns regarding data security and the risk of financial fraud.

3. Outdated Policies: An organization's T&E policies may become obsolete or fail to align with current business needs and practices, leading to inefficiencies and policy breaches.

4. Lost Reports: Misplaced or lost expense reports can disrupt the reimbursement process, leading to employee dissatisfaction and administrative headaches.

5. Inefficient Bookkeeping: Manual and outdated bookkeeping methods can result in errors and inefficiencies, making it difficult to track and manage expenses accurately.

6. Lack of Spending Visibility: Without clear visibility into T&E spending, organizations struggle to control costs and make informed budgetary decisions.

7. Slow Reimbursement Process: Delays in processing reimbursements can demotivate employees and hinder efficient financial management.

How to make travel and expense management process efficient

1. Review your travel expenses and reimbursements

One of the first things you should do is take a look at your current travel expenses to see if there are any changes to be made.

Business travelers will always need to take trips, but perhaps there are some interactions that could be handled via videoconferencing.

You can also look for ways to minimize the expenses that need to be reimbursed. For instance, by using Pluto corporate cards, you could help eliminate, or at least reduce, the need to reimburse food expenses while giving you better control over them.

2. Examine your travel policy and keep it simple

If you are having trouble with your T&E management, you should take a look at your current travel policies (and if you don’t have one already, you should make that your top priority).

Your T&E policies need to strike a balance between flexibility and strictness. Too flexible and you create waste; too rigid and you limit the ability for people to do their jobs.

A good T&E policy should include the following:

• How travel will be booked
• The process to follow for reimbursement (including what type of supporting documentation is necessary, due dates, and other stipulations).
• Any budget or spending limits, including the specific transportation methods or hotels that can be used.
• Meal allowances.

And you want to keep your policy simple and easy to read. Minimize the jargon, use short paragraphs, and a simple format with bullet points, tables, and clear headings.

You should continuously review your expense policy, particularly as your business expands, to ensure that it’s aligned with any changes in your organization. 

3. Go paperless

Your team should be able to access your expense policy from anywhere and at any time. But more than that, you should aim to digitize the expense report process as much as possible.

For instance, implement the ability to submit digital expense reports and capture receipts digitally. Not only will this allow you to get a clearer view of your operations at all times, but it will help simplify your bookkeeping and easily manage receipts.

Pluto has this function! 

4. Use travel expense management software

Through effective use of travel and expense management systems, you can consolidate the different scaffolds in your expense process, automate them, and eliminate time-consuming approvals while minimizing, or outright eliminating, human error.

Using Pluto allows you to cut a lot of the fat out of the reimbursement process. Automate reports, data gathering, and approvals for expenses that meet your policies, leaving only those that don’t meet your policies for manual approval. 

Furthermore, it can help you detect fraud by auditing your reports for duplicate expenses and any other anomalies.

And through software integration, you can use these different tools to create a unified T&E management process. 

5.  Top solutions for travel and expense management

There are many tools you can use to make your T&E management more efficient, for instance:

• Pluto Card allows you to issue unlimited virtual cards, create travel specific card limits  monitor spending in real-time and most importantly, it allows your employees to reimburse quickly!
• A travel expense tracker can provide you with automated expense reporting and expense tracking.
• You can use a travel management platform that allows your employees to book flights, trains, and hotels and even rent cars from one place.
• Pluto mobile app makes the expense reporting process much simpler for your employees.
• You could take data from Pluto and travel management system directly into your accounting platform to further automate and simplify the T&E management process.

Expense management software for T&E management

One of the best ways to simplify your travel and expense management is by making use of the right T&E management software. However, with the increasing amount of options available, knowing which one fits your company best can be difficult.

Since no two businesses are exactly the same, there won’t be a one-size-fits-all solution. Having said that, you’ll have an easier time choosing between the different options by focusing on the specific features that you need, or at least should consider, in a T&E management platform.

Key features to look for in a travel and expense management software

1. Virtual cards

Pluto gives you the ability to create virtual cards for online purchases. These cards can be generated as single-use or recurring, giving you complete control in terms of how you set up your spending limits.

Virtual cards offer you similar benefits to corporate cards, in the sense that you get full visibility of your expenses and your employees don’t have to pay upfront, but they have the added benefit of being more customizable.

2. Flexible spending limits

Our expense management software can also give you a lot of control and flexibility over the spending limits that you set. Pluto allows you to set specific spending-limits for vendor and change them in real-time online. 

This allows you to track expenses for specific countries or cities, while removing the need to manually configure spending limits each time someone makes a trip request.

3. Expense reports and analytics

If you want to make your expense management more efficient, you’ll need accurate data and insights into the spending habits of your employees.

Pluto gives you real-time reporting and analytics, to give your finance teams an easier time combing through all the expense data. For instance, a system with robust reporting capabilities should:

• Categorize expenses and organize reports by expense type
• Reconcile your reports
• Give you spending insights across all your departments
• Keep track of violations of your expense policies
• Provide you with real time spend visibility

By getting a clear picture of your expenses, you’ll have an easier time ensuring policy compliance, preventing fraud, and reducing travel costs.

4. No FX fees and multi-currency functionality

If your employees travel internationally frequently, you’ll want a product that comes with a card that doesn’t have additional fees or surcharges for international purchases.

At Pluto we have 0 FX fees. Furthermore, you’ll have an easier time managing these expenses due to multi-currency functionality automatically converting all transaction information to your country’s currency.

5. Mobile functionality

If you are trying to simplify your expense reporting process for travel expenses, then you need a way to work on those expenses on the go. Pluto’s mobile app would allow your employees to report their expenses right away from any location, while also giving them the ability to submit receipts digitally.

6. Integrated card management

If you opt for a software provider that also offers corporate credit card services, you’ll be able to automatically reconcile expense report entries with your card statements, detect any expense bottlenecks, and generally reduce the chances of fraud or misuse. 

Pluto card management software will also give you more control over your corporate spending. Plus, you’ll be able to set and control your spending limits with much more ease.

7. Compatibility with other tools

When it comes to the use of technology in expense management, the more, the merrier.

Pluto can be integrated with your accounting software so that it can automatically populate expense reports and simplify your reimbursement through the use of your organization's accounting data.

Furthermore, by integrating your TEM system with your travel management system you can instantly take the travel booking information and add it to your expense reports.

8. Automated workflows, expense categorization, and tax calculation

The entire point of using travel expense management software is to automate as many processes as possible.

This includes the ability to customize your travel policies and approval workflows, categorize expenses for more straightforward tax calculation, and determine whether they are tax deductible or not.

Furthermore, by categorizing your expenses, you’ll have an easier time complying with the tax regulations of your country.

9. Scalability

One feature that is sometimes overlooked in software platforms is the ability to scale your operations as your company grows. You don’t want to choose a system now only to realize it no longer meets your needs further down the line.

In this regard, Pluto is a great pick as we have the backend to support any business sidez from small teams to enterprise level accounts. 

Key takeaways

Effective expense management is all about visibility, flexibility, control, and automation. The most common pain points from T&E management come from outdated policies and manual inputs, which you should seek to update and simplify via means of a robust expense management platform.

When it comes to making your travel and expense management more efficient, the key things to remember are:

• Review and update your policy continuously to ensure it meets the needs of your business and employees.
• Examine your current expenses to look for opportunities to reduce reimbursements and consolidate expenses.
• Use Pluto to automate approval workflows and simplify the expense reporting process.
• Pluto also offers strong reporting capabilities, gives you a lot of flexibility for spending limits, and can be integrated with other tools for maximum effectiveness.

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The sales team needs a new SaaS product for cold calling, but the approval is due. It has been weeks, and neither the finance nor the legal team has reverted. The sales team keeps following up, and the procurement team is stuck in the loop of approvals, only to spend some more weeks negotiating with the right vendor later.

This is a common scenario in most companies where teams follow a fixed standard operating procedure, and procuring basic items takes months. All this, combined with multiple tools, complicates procurement further. One tool to raise requests, one for approvals, one to manage vendors, and so on. 

In this blog post, we will discuss how to automate purchase orders and simplify the procurement process. Instead of relying on hundreds of procurement automation software, we will look at how you can automate with minimal effort. 

What is Purchase Order Automation?

Purchase order automation is the process of automating and removing all the manual tasks associated with creating purchase orders. 

This is what the traditional procurement process looks like in most companies:

• Employees fill out forms to raise purchase requests, but have a long wait before they receive a response.
• The procurement team struggles to manage hundreds of purchase requests and seek approvals from different departments.
• The finance team is disliked by both employees and the procurement team because they focus on cost-saving and resource optimization.

As a result, there is continuous internal resentment. 

Automating parts of this process lifts the weight off of each of them. Instead of relying on forms and different task management tools, you invest in centralized software to manage requests, set approval workflows, and maintain vendor databases.

How to Automate Purchase Orders

Here is a simple four-step method to automate your purchase orders: 

1. Find the Right Automation Software

We have explored the top procurement automation software previously, which will help you evaluate the alternatives available. To pick the right one, look for the following features: 

• Ease of use- To simplify adoption and reduce training time
• Flexible workflows- To adapt to complex organizational hierarchies
• Integration- To connect and sync with existing accounting systems and ERPs
• Reporting- To support data-driven decision-making and enhanced transparency
• Real-time visibility- To track expenses and identify thefts and fraud
• Scalability- To accommodate increased transactions and users without performance issues

2. Integrate With Your Accounting Software and ERPs

Connect your existing accounting software and ERPs to procurement automation software to sync vendors and transactions across multiple software platforms. 

As a result, it becomes easier to maintain vendor databases and reconcile accounts. You can streamline purchase orders and eliminate chances of errors. You get real-time visibility into the status of orders, ensuring that relevant stakeholders are informed at every stage.

3. Set Up Policy and Approval Workflow

Create and enforce guidelines, rules, and approval hierarchies for purchase orders that align with organizational policies. This includes the following steps:

• Outlining the approval workflow to follow the organizational hierarchy
• Setting spending limits to control the amounts allocated in a single purchase order
• Syncing and defining the preferred vendor's list
• Specifying user permissions, access levels, and actions based on roles within the procurement process
• Activating alerts for relevant stakeholders about the status of purchase orders, pending approvals, or other critical updates

This step will enhance security, communication, and transparency throughout the procurement workflow.

4. Implement Automation

Finally, once you complete the setup, you will be able to automate the following parts of purchase orders:

a. Approval Workflows

You can set up trigger-based approval workflows without requiring any technical expertise. From approving purchase requests to clearing payments, you can set up a proper hierarchy with all the required stakeholders. 

So whether a purchase demands approval from three managers or three departments, you can accommodate the complexities without any delays.  

b. Vendor Database

Instead of importing/exporting or manually maintaining vendor data in your procurement software, you can integrate the software into your existing accounting system and ERPs for a convenient two-way sync.

You can also create a list of items for each vendor, making two-way and three-way matching easier. 

c. Receipts

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Be it from email or WhatsApp, you no longer need to upload receipts and information in your system manually. The software captures the receipts and other key details via OCR, eliminating redundant record-keeping. 

Additionally, you can bulk upload the invoices to add all the information in a centralized platform and sync across accounting systems. This simplifies reconciliation and provides complete visibility into each expense. 

d. Expense Categorization

You no longer need to manually add tax and general ledger (GL) codes to any expense. Based on the key information extracted via OCR, the software categorizes the expenses. Plus, this syncs across platforms, accelerating reconciliation. 

e. Goods Received Note (GRN) Matching

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With OCR and receipt information retrieval, two-way and three-way matching becomes easy. The stakeholders can side-by-side compare the purchase order, invoice, and items listed. This significantly reduces the time spent on GRN matching and consolidates all the information on a unified platform. 

f. Audit Trails

You get away with the need to maintain thousands of receipts and documents and get all the key information on a unified platform. From purchase requests to stakeholders involved and order status, you get complete visibility into each order. 

This audit trail becomes a blessing during the audit season when you only need 30 seconds to retrieve a specific receipt or document.  

How Automating Purchase Orders Makes Procurement Easier

While automation comes with multiple benefits, one reason to try it out would be gaining control and visibility. 

You go from not knowing what the teams need, where the money is going, which department spends the most, or why these reports don’t make any sense to getting clarity on every aspect of procurement, not just purchase orders. 

Here are five more benefits of automating purchase orders: 

1. Reduce Error and Manual Tasks

You minimize the risk of human errors that come from manual data entry. For instance, a manual typo in the quantity ordered leads to complications and delays. Similarly, a mistake in categorization can cause legal issues. Automation ensures accuracy by eliminating such human errors.

2. Faster Reconciliation

You get real-time data synced across your accounting systems, easing the reconciliation process. The finance team can quickly match records, such as invoices and receipts, without delays and discrepancies. Further, this eases the process of GRN matching, helping you close books much faster with accuracy.

3. Streamlined Approvals

You accelerate the approval process for purchase orders even with complex hierarchies. Instead of waiting for physical signatures or manual confirmations, you get trigger-based approval workflows. As a result, you can set up a proper notification system to send purchase order requests to designated approvers, speeding up the entire approval chain.

4. Compliance Support

You can enhance compliance with organizational policies and regulatory standards. For instance, the system can flag a purchase order exceeding predefined spending limits, ensuring compliance with budget constraints. This helps prevent unauthorized purchases or deviations from established guidelines.

5. Scalable

You can scale procurement easily to meet the evolving needs of the business. As the organization grows, the automated system handles increased transaction volumes without affecting or increasing the manual effort.

Your Search for a Purchase Order Automation Tool Ends Here

Stop looking for different automation tools for each step in your procurement process. You don’t need an individual solution for purchase requests, purchase orders, and processing payments. You can automate it all on a single platform and ensure accuracy and consistency among your accounting systems. 

At Pluto, our main aim is to stop the chaos and make procurement easier for three core stakeholders—spenders (employees), savers (finance teams), and sourcers (procurement teams). We streamline the entire process on a centralized platform and give you more visibility and control at each stage. And whether you want to automate one step or digitize your entire procurement process, Pluto gives you the flexibility to meet your needs. 

Refer to our dedicated post on procurement automation to understand how a single procurement platform can sync with your accounting systems and automate the procurement process on a centralized platform.

Corporate credit card vs. a business credit card. You might have heard both terms used interchangeably, but what's the difference?

Primarily, corporate cards are issued to large businesses with many employees, while business credit cards are designed for smaller businesses. Corporate cards generally have higher spending limits and may offer more perks than business cards due to their volume.

This post will cover the main differences so you can decide which card is best for your business.

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What is a Business Credit Card?

A business credit card is a commercial payment solution for companies and businesses. Similar to a personal credit card, business credit cards are used when business-related purchases are made on credit provided by one of the credit card companies.

Banks in the UAE and MENA offer various business credit cards for small, medium, and large companies. 

Business credit cards usually offer higher credit limits than personal credit cards and may come with exclusive privileges, such as free travel insurance, concierge services, and air miles.

In the case of small businesses, a personal credit score will play an important role in credit limit approval.

What is a Corporate Credit Card?

A corporate credit card is issued to company employees to help with business expenses. The company will be liable for any debts incurred on the card.

It is important to note that corporate cards are not personal credit cards and should only be used for business purposes.

Financial institutions expect you to spend more with a corporate card than a business card, as the companies that require those cards are usually bigger. Therefore, the company must have a good credit score to qualify. This can come with various perks, such as lower interest rates, extended grace periods, and, most importantly - higher spending limits.

At the same time, there can be some drawbacks, such as:

• Long approval periods due to the nature of the financial product.
• Limited online features for your cards and company spend management. 

What is a Pluto Card?

Pluto is MENA's corporate card that helps finance teams take control of their company's expenses while saving their business time & money. While Pluto can't give you a line of credit, you will be able to instantly issue as many business and corporate cards as you need while getting a complete overview of your business's spend management on one dashboard.

Virtual credit cards

Virtual cards are corporate credit card numbers used for online business-related purchases and contactless payments.

Although there is no physical card, virtual credit cards are great as they are flexible, convenient, and controllable.

With virtual credit cards, you can:

• Issue unlimited virtual credit cards/employee cards;
• Create a virtual credit card within seconds;
• Set employee spending limits to avoid going over budget;
• Generate a one-time use purchase card that deactivates as soon as it is used;
• Set purchases to be made with specific vendors so the card can't be used for other purchases;

Chances are that if you need a virtual credit card at your existing bank, it might take quite some time, and the reporting and limit setting options might not be very user-friendly.

While Pluto cannot provide you with credit cards, we can issue as many virtual cards as you need with just a few clicks:

Physical credit cards

Physical corporate credit cards serve the same purpose as virtual and business credit cards, making payments. Unlike virtual cards, physical corporate credit cards can be used in person to make purchases.

While both virtual and physical credit cards are comparable, the main differences are:

• Physical corporate credit cards may take up to 3 business days to be delivered.
• Virtual cards cannot be used physically.
• Virtual cards are safer for the user, as they cannot be lost or stolen.

Benefits and perks

The benefits and perks differ for business and corporate credit cards and Pluto cards.

Business & corporate credit cards:

• Receive Business reward points for purchases made that can be redeemed for future purchases.

Pluto cards:

• Gain access to over $35,000 in perks and rewards programs

Why are Business Credit Cards and Corporate Credit Cards Different?

Now you know the main difference between business and corporate cards, but let's investigate some of them in more detail.

Expense management tools

Business credit cards are frequently limited to your online banking platform. In the case of corporate credit cards, you may get something slightly better - an enterprise solution.

But from what we have seen, the speed of card issuing or limit changes is usually lacking.

Pluto doesn't give you a credit line, but here is a list of things that Pluto's expense management platform does:

• Unlimited corporate cards (within seconds);
• Set spending limits on corporate cards to avoid going over budget or being overcharged;
• Issue one-time purchase cards that deactivate after being used;
• Real-time transactional data - know what (and where) is being spent in real-time;
• Ability to oversee company financials and receive instantaneous expense reports;
• Automated accounting; 
• Sync transactional data to major accounting platforms;
• Simple and quick reimbursements;
• Digitized receipt reconciliation;
• Close books in hours, not days.

Corporate and business card fees

The fees that you might have to pay on corporate and business cards fall into two main categories:

Annual fees

For business and corporate credit cards, annual fees may differ depending on the bank or credit card issuer you choose to move forward with. Typically, the UAE's yearly fees range from 0-800 AED, with 'free for life' being the most popular.

If there are any fees, you can typically waive them by spending a certain amount per year.

Pluto cards do not have any annual fees and are entirely free; however, if you're a large corporation that wants unlimited users, custom ERP integrations, or a dedicated account manager, there will be a monthly subscription fee.

FX fees

Business and corporate credit cards tend to incur FX fees, making it expensive for a company owner, a small business, or a large business to do any transactions outside their domestic currency.

FX fees can be high, and credit card issuers are usually not transparent with the fees that come with them. Typically, fees come in the form of an FX spread and are hidden inside your payment, meaning you might be paying 2-6% for a transaction in a different currency.

Just imagine how much of your spending is in a different currency and take an optimistic 4% fee from that amount. Now multiply it by five years.

Pluto does not charge FX fees, making it the perfect choice for companies or businesses that frequently transact in foreign currencies.

Application & Approval Process

You must wait around two weeks for a business credit card approval. After the approval process, it may take up to 10 business days to receive your business credit card.

With a corporate credit card, the time may vary, but the chances are that you will need to wait more than 5 business days before you get approved.

From our experience, when you need an expense card - you need it on the spot!

Pluto has adopted a KYB & KYC (know your business and client) process that allows us to onboard customers in minutes. After you set up your account, you can start issuing virtual cards and continue your work without halts or limitations.

Corporate vs. Business Credit Cards Pros and Cons

While a corporate credit card and a business credit card may be comparable in some aspects, there are some differences between the two financial products.

Business credit card pros

• Available for most businesses in their standard banking products;
• Standard application process with low business requirements;

Business credit card cons

• Usually limited in numbers, one card is internally shared amongst many employees. That creates bottlenecks in spending and raises various security risks;
• Non-existent (or very limited) spend management platforms to monitor your reporting;
• No virtual cards;
• High FX fees;

Corporate credit card pros

• Higher spending limits;
• Possibility to issue several cards;
• Safe & secure, as information is not being shared;

Corporate credit card cons

• Longer approval process;
• High FX fees;

While the pros and cons for both types of cards may vary, the final decision will be based on the size of your business.

Why Pick Pluto Card for Business and Corporate Users?

As mentioned, Pluto won't give you a line of credit; instead, Pluto provides you with an all-in-one expense management solution. 

Pluto's spend management platform

• All your business expenses are at your reach on Pluto's dashboard;
• Control over all issued cards and their limits;
• Creation of unlimited virtual cards;
• Real-time expense reporting;

Approval workflow on Pluto

Once you have access to Pluto's expense management dashboard, you'll also be able to set up approval flows and automation.

With Pluto's approval workflow, you can:

• Get visibility and control over your expenses;
• Streamline how you manage your spending;
• Automatically direct approvals to the right employees;
• Create approval flows within departments;

Real-time expense reports

With Pluto cards, you'll gain real-time transactional data on company spending while being able to set strict budget limits.

This will also help you make informed decisions about allocating resources and improving your P&L.

Additionally, you can also set up notifications to be sent to your accounting or finance team whenever a transaction is made. This way, they'll always be in the loop and can take appropriate action if needed.

Which Card is Best for My Business?

The final pick of the card will depend on several factors related to your business.

Industry

The needs of companies based on their industries may differ. Consulting businesses need a flexible card solution with no FX fees, as their employees travel frequently. Digital agencies need multiple virtual cards to onboard new projects and pay for ad networks daily.

Consider the needs relevant to your industry and decide from there. While Pluto is an excellent pick for all industries (as we have a very versatile product), here are some of the use cases that illustrate the needs and how Pluto solves them:

• Agencies
• Startups
• Consulting
• E-Commerce
• Logistics

Size

Annual revenue, the number of employees, and spending volume will also come into play when making your decision.

If it is just you or a couple of employees, you may not need many cards (or you might take advantage of Pluto's virtual cards).

On the other hand, if you have a sales team that needs to pay for lunches with prospects every second day, one card in the business owner's name will be problematic! 

Control

How much control do you need over your spending? Classic credit cards (be it business or corporate) usually have just a few features that are extensions of your online banking.

In some cases, that might be enough. If there is one card and one person using it - setting limits and monitoring the spending is not an issue.

Pluto comes into play when you have several holders and many cards, as you can set custom limits on cards. Real-time reports of spending suddenly become very important to increase and decrease limits on the go.

Key Takeaways

• Business credit card is the best fit for small business owners; they offer a standardized solution.
• Corporate credit cards are for bigger companies, allowing higher spending and slightly better control.
• Pluto cards (used for all business sizes) can provide unlimited virtual cards and give you access to an all-in-one expense management platform.

FAQ

Does a corporate credit card affect my credit score?

A corporate card is a company's liability and does not affect your credit score, and you will not see them on your personal credit report. Pluto cards do not affect your credit score in any way (as they do not provide loans or credit facilities).

What is the difference between a business and a corporate credit card?

The main difference between small business credit cards is the size of the company that uses them, followed by credit limits and available control features. Pluto provides cards to corporations and businesses through the all-in-one spend management platform.

What is meant by a corporate credit card?

A corporate credit card refers to a card provided by the company to the employee for various business-related expenses.

Is a corporate card the same as a credit card?

Credit cards primarily draw from an approved loan balance, while corporate card programs are just an extension to a dedicated corporate account. But the terms are used interchangeably nowadays.

What is the difference between corporate and domestic credit cards?

A domestic card may refer to a debit card or a card issued by your local bank for your local use. Corporate cards are accepted internationally, at the ATM, or online.

Can a corporate card be used for personal use?

No. By default, corporate cards have to be used for business expenses, which are reported into accounting, but most importantly, it is the company's money on that card. The only exception will be if your company allows it.

What is the advantage of a corporate credit card?

Usually, it comes down to higher spending limiting. Compared to small business credit cards, corporate credit card debt does not usually require a personal guarantee, as the company guarantees it.

In the case of Pluto's corporate card, we can also add - unlimited virtual cards, real-time team-wide spend control, instantaneous reporting, and no FX fees!

Does a corporate credit card affect my credit score?

No. If the corporate credit card has a credit facility attached to it (it usually does), it is a company liability, not a personal liability. You are given access to a portion of their credit facility that does not fall into the personal loans group, and you do not need to provide personal guarantees.

Can my company require me to put business travel on my own credit card?

No, the company cannot force you to put business expenses on your credit card, but it is sometimes easier for everyone. So, if you agree with that, and the company agrees to reimburse you - it is not a problem. 

If you are looking for a better solution, let the Pluto team know, and we will provide you with an easy corporate card platform for your whole team.

Do corporate credit cards require a credit check?

A corporate credit card (in its classical meaning) is attached to a loan facility. To approve this loan facility, banks must do a company credit check. 

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