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Here’s a type of card you’ve probably never seen before: The Divvy Business Credit Card is a business credit credit card that gamifies the way you earn — offering additional points awarded on purchases if you pay your bill weekly. It can be an absolute power earner, awarding up to 7 points per dollar, via Divvy Rewards, on select purchases. What makes this return even more impressive is that the Divvy Business Credit Card is a no-annual-fee credit card.

However, both the lucrative bonus categories and the options for redeeming points are limited. Let’s take a look at whether this card will fit into your business strategy.

(Photo by John Gribben for The Points Guy)

Who is this card for?

The Divvy Business Credit Card is a small-business credit card, meaning it’s a good option for organizations that are growing quickly as well as sole proprietors just looking to take more control over their business spending.

It’s very handy no matter the size of your business, as it automates much of the clerical minutiae of owning a small business (we’ll get into that later). However, if you have a small payroll with limited needs to extend lines of credit to employees, some of the card’s most unique features won’t be of use to you.

Related: 7 credit cards every freelancer should have in their wallet

This card also may appeal to you if you’ve already opened most other popular small-business cards and are looking for something outside the realm of Chase, Amex, Citi, etc. It shouldn’t count against your Chase 5/24 status, as most small-business cards don’t appear on your personal credit report.

Divvy stipulates that this credit card is for those with “good to excellent” credit. But Divvy also offers a helpful (and unlisted) feature for those with poor credit, or even no credit: Divvy Credit Builder accounts (or prepaid accounts). If you can’t get a credit line but still want Divvy’s benefits, you can prepay your account and use the Divvy Rewards platform to withdraw from your available funds.

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Sign-up bonus

Bad news here: the Divvy Business Credit Card currently offers no sign-up bonus.

Main benefits

While you examine these card benefits, keep in mind two things:

These are the things Divvy wants to achieve for your small business that other cards may fail to do. I attended a demo of the credit card, and the card does offer an edge over all other small business cards in the above capacities.

No annual fee

The Divvy Business Credit Card is easy on the bottom line with no annual fee. Not only is there no annual fee for the main account holder, but there are also no extra fees for requesting employee cards with no maximum limit on employee cards.

Create budgets

Herein lies the Divvy Business Credit Card‘s namesake. The main feature of the card is the way you can divvy up your corporate card’s line of credit.

One of the most worrisome aspects of adding an authorized user or employee to your primary credit card is the fact that they have carte blanche access to your credit line. The budget feature solves that problem as you can dole out a unique amount of credit for specific situations, only as much as you’re willing to spend.

As the budget owner, you can view an extremely digestible dashboard of all the budgets you have assigned. It contains graphics reflecting the size of each budget, how much is spent and how much is remaining. You can also create unlimited budgets.

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For example, you can create budgets for each employee to ensure they don’t blow out your credit limit or rack up too many unexpected expenses. If you’ve got an employee traveling to a conference, you can assign a dollar amount to their card. Once they hit the card’s limit, the card will decline.

On the same note, each employee can request a bump in credit from the budget owner. If there are unforeseen expenses, the budget owner can release more credit in real-time. You can also establish a “grace period” of sorts, where the card won’t decline if the cardholder nominally breaches their credit line.

The idea here is to eliminate overspending, and therefore save the company money.

It’s also worth noting that when you pay a bill, you will immediately unlock that amount of credit once again (similar to American Express).

Easy expensing

Processing and completing expense reports is always an unpleasant endeavor for business owners and employees.

Divvy employee cards puts the onus of expense tracking on the employee doing the spending — but it’s easy for them, too. As soon as they spend, they can submit a receipt and spend a couple of seconds entering the purchase details, and it’s all done and over right then and there.

Varying levels of permissions

Most credit cards, personal or small business, give authorized users little to no power over the account. They can’t log into your account, they can’t see how much credit remains and can’t do anything but spend.

With Divvy, you can give different permissions to different cardholders. If for some reason you want to give another cardholder access to account info, you can do this without handing over your personal login credentials.

Reimbursement

Even if you can’t use your Divvy Business Credit Card for all purchases, you can still input any expense into Divvy and reimburse yourself for purchases you make without the Divvy credit card through ACH deposits for free.

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Read More: Divvy Business Credit Card review: Business card offering unique features we’ve not

2022-11-20 20:00:42

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