For Start-ups: IDFC FIRST Bank's secured corporate credit card

Summary: IDFC FIRST Bank's Business/corporate credit card for Start-ups goes beyond credit access to give Start-ups a range of benefits. Know more about corporate cards and the difference they make for Start-ups.

14 Aug 2023 by Team FinFIRST

secured corporate credit card for startups

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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

What is a secured corporate card?

A secured corporate credit card is a one designed for businesses and is usually offered against a fixed deposit. In other words, the business makes a fixed deposit with the credit card issuer and receives a secured corporate card against it.

Advantages of a corporate credit card

It is easy for Start-ups to avail of a corporate credit card against a fixed deposit. The card offers the following benefits:

· Improved credit score

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.

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· Better cash flow management

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.

· Access to capital

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.

· Additional rewards

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.

· Fraud protection

Many cards come with a liability protection cover that safeguards against fraudulent activities should the card be stolen and misused.

· Expenses tracking

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.idfcfirst.bank.in for latest updates.