You don’t need a corporate credit card with perks
Over 50% of businesses are over budget by >10%. Most credit cards give you 1% cash back. Lola.com actually solves the problem, and gets you on budget.
You don't need a line of expensive credit. When you are shopping business credit cards, you're looking for a solution that will:
- Simplify payments and expense management
- Give you visibility and control over spend
- Help you manage your cash flow
Corporate card offerings from traditional banks may have been the only option that attempted to address these needs five years ago, but now there are dozens of alternatives.
In fact, business credit cards from banks are the worst solution to your problems.
Their terrible software actually makes managing your expenses more difficult. Their idea of visibility is a CSV export. But they do help you control your spend by making it easy to spend more money than you have, with interest. It would be criminal if it wasn’t so profitable. The only things these banks offer are perks you don’t need, and expensive credit you shouldn’t use.
Since the EU passed their Open Banking regulation in 2018, it has become easier for software companies to offer their own credit card programs. This started a global trend that spread the US, where formal regulation is still pending. Software companies could build great software, and connect to the financial infrastructure of almost any bank using APIs.
It’s safe to say that every expense management software company is coming out with a shiny new credit card. And almost every single one is a better option than traditional bank offerings. You can more easily see what your team spent money on, attach receipts, get approvals, and perform other expense management activities in a single app.
But for the most part, this new breed of software-enabled credit cards simply took a paper expense management process, and made it digital. You still have to do the same amount of work, just in an app. These solutions also took exactly what banks offered, easy credit and perks, and simply repackaged it. And while these solutions offer dramatically better reporting and visibility into your spend than banks, they do not offer any meaningful way to control it.
This isn’t good enough. In a recent survey of over 600 budget owners, over 50% of respondents found themselves more than 10% over budget; 35% have found themselves more than 30% over budget.
A bank's response: We'll give you 1% cash back, 2x on travel, and free access to the lounge.
Our response: We'll... actually solve the problem.
Lola Spend allows you to set budgets for each card and then gives those budget owners the ability to manage their expenses by category, team, and individual employee. Our connected corporate card updates in real time, only allowing employees to spend within their budget and on permitted merchant categories.
Learn more about the Lola corporate expense card here.