A purchase credit card or purchase card is typically issued to a private limited company by a bank for their company expenses. There is no concept of minimum due on purchase credit cards, and the company has to make a full payment on purchase credit cards. The purchase credit card is used by finance teams of big companies to make vendor payments, and it is considered better than cheques and other modes of payments. In this article, we would discuss different types of purchase credit cards, and why your company would want to choose Karbon cards for purchase credit cards.
In the Indian markets, there are about 10 good options for purchase credits cards, and the market leader is HDFC Purchase credit card. In your company is a listed entity or profitable for more than 3 years, then you might want to choose HDFC Purchase credit cards. Most private limited companies do not qualify for purchase credit cards without a fixed deposit or collateral from HDFC Bank. The qualification criteria is more or less the same with other banks. For all banks, the companies need to open a company’s bank account, put a fixed deposit as collateral, apply for purchase credit card, and then wait for 30-60 days to finally get a card. The sales manager or relationship manager might tell one week, but we at Karbon have seem this first hand when we applied for a purchase credit cards from three banks.
You could consider our post biased, as we are promoting Karbon’s purchase credit cards in this article. Well, to be fair, this is truth, and we wrote this article to educate our potential customers.
Time Taken to Issue : KARBON => 3-5 working days ; Banks => 30-60 days
Collateral : KARBON => 0 ; Banks => Fixed Deposit equivalent of 110% of credit limit
Need to Open Bank Account : KARBON => NO; Banks => YES
Invoice Receipt Management : KARBON => YES ; Banks => NO
Pharmeasy, CRED, MyGate, Nazara, and many more early stage startups trust KARBON purchase credit cards for their vendor payments, digital marketing expenses, and cloud expenses. We at KARBON are agile, and we are confident that we would meet or even exceed your expectations on purchase credit cards with our product and customer service.