A Ramp card is a corporate charge card designed specifically for businesses, operating on the Visa network. Unlike traditional credit cards that allow you to carry a balance, a Ramp card requires businesses to pay off their entire outstanding balance in full by each monthly statement period.
Understanding Ramp's Corporate Card
The Ramp card serves as a financial tool for businesses to manage their expenses efficiently. It helps companies separate business expenditures from personal finances and provides insights into spending, which can be crucial for budgeting and growth.
Key Features and How It Works
- Corporate Charge Card: At its core, Ramp functions as a charge card. This means there's no option to revolve a balance; the full amount spent each month must be repaid by the due date. This structure can help businesses avoid interest charges and maintain disciplined spending.
- Powered by Visa: Being part of the Visa network ensures that the Ramp card is widely accepted globally, making it a versatile tool for various business purchases, from supplies and software to travel expenses.
- No Personal Guarantee: A significant advantage for business owners is that the Ramp card typically does not require a personal guarantee. This means the business owner's personal assets are not directly on the line if the business defaults on its payments, providing a layer of protection.
- Strict Qualification Requirements: To qualify for a Ramp card, businesses must meet specific financial criteria. A key requirement is having at least $25,000 in cash across any U.S. business bank account. This ensures that the business has sufficient liquidity to manage its expenses and fulfill the monthly payment obligation.
Benefits for Businesses
Utilizing a corporate charge card like Ramp can offer several advantages for companies:
- Expense Management: Centralizes business spending, making it easier to track and categorize expenses, which simplifies accounting and budgeting processes.
- Enhanced Cash Flow Control: The requirement to pay the balance in full encourages responsible spending habits and helps businesses maintain better control over their cash flow, preventing the accumulation of high-interest debt.
- Streamlined Operations: Can integrate with accounting software, automating expense reports and reducing administrative overhead.
- Employee Spending: Allows businesses to issue cards to employees with customizable spending limits and controls, enhancing accountability and reducing unauthorized spending.
Key Characteristics of the Ramp Card
For a quick overview, here are the core characteristics of the Ramp card:
| Characteristic | Description |
|---|---|
| Type | Corporate Charge Card |
| Network | Visa |
| Payment Terms | Full balance due monthly by statement period |
| Qualification | Minimum $25,000 cash in any U.S. business bank account |
| Liability | No personal guarantee required |
In essence, a Ramp card is a powerful financial instrument tailored for modern businesses, prioritizing expense control and financial discipline through its charge card model and business-centric features.
