Applying and Understanding How a Corporate Card Works

For small and medium enterprises (SMEs) in the UAE, managing expenses effectively is crucial to staying competitive and achieving growth. SMEs represent 90% of all businesses in the region, making efficient financial management a key factor for success. However, many SMEs struggle with keeping expenses organised and transparent, often facing issues like cash flow instability, lack of accountability, and complex expense tracking that consumes valuable time.

That’s where corporate cards come in. These cards make it easier to manage finances by streamlining expense management, boosting transparency, and enhancing control over cash flow. With features like real-time tracking and simplified reporting, corporate cards allow UAE businesses to shift their focus from managing finances to driving growth. In fact, 51% of business leaders report that automated systems save significant time each month—a clear indicator of how modern financial tools are transforming efficiency for SMEs.

In this article, we’ll explore the various types of corporate cards, their features, and how they can empower SMEs to achieve sustainable growth through efficient financial practices.

Types of Corporate Cards

Corporate cards come in different types, each designed to meet specific business needs. Understanding these options can help SMEs choose the best fit for their operations:

1. Traditional Bank Corporate Cards

These cards offer high credit limits, travel rewards, and detailed reporting tools, making them ideal for businesses with substantial monthly expenses that require robust tracking and budgeting features.
At Alaan, we make it easier for teams to manage expenses. You can issue unlimited corporate cards for your team, set spending controls, and track every transaction in real-time. Our cards integrate seamlessly with our platform, offering detailed expense categorisation and automated VAT compliance for unparalleled financial control.

2. Software-Oriented Provider Cards

Tailored for SMEs, these cards offer flexible, user-friendly platforms, enabling businesses to set individual spending limits and manage multiple cards with ease. They help SMEs maintain budget control and minimise operational costs.

3. Corporate Travel Cards

Designed to manage travel expenses, these cards offer rewards like cashback or travel points, providing a cost-effective way for SMEs with frequent travel needs to reduce future expenses.

4. Virtual Cards

Ideal for online transactions, virtual cards enhance security by limiting exposure to one-time or single-use transactions, making them perfect for e-commerce purchases and subscription services.

Features and Benefits of Corporate Cards

Corporate cards offer several features that simplify expense management and add value for SMEs. Here are the core benefits that make them essential for business financial management:

1. Expense Management

Corporate cards integrated with accounting software automatically sync transactions, making reporting, budget monitoring, and spending analysis simple and efficient. This helps SMEs maintain clear, up-to-date financial records.

2. Spending Controls

Corporate cards allow setting individual spending limits for employees, helping SMEs stay within budget and prevent overspending. With real-time tracking, businesses can adjust limits as needed, enhancing flexibility and accountability.

3. Reward Programs

Many corporate cards offer cashback or travel rewards, which can be reinvested into the business. These rewards help offset costs for essential expenses like travel or office supplies, adding value to everyday spending and boosting employee satisfaction.

Unlike traditional corporate cards that focus on reward points, Alaan offers direct cashback that businesses can use without restrictions. With up to 2% cash back on all transactions—without an upper limit—our solution supports international payments for services such as Slack, Microsoft, Google, Meta, Figma, and Canva.

By harnessing these features, SMEs can streamline expense management, maintain budget control, and maximise the value of their expenditures.

How Corporate Cards Work in Business Operations

Corporate cards streamline business expenses and improve efficiency in everyday business operations. Here’s how:

• Expense Management: With corporate cards, employees can make authorised purchases directly, eliminating the need for reimbursement and reducing administrative tasks. This frees up time for finance teams to focus on more strategic initiatives and allows them to track spending patterns in real-time.
• Enhanced Financial Insights: Corporate cards integrated with platforms like Alaan’s provide businesses with real-time tracking of expenses. This helps identify spending patterns, optimise budgets, and maintain transparency across all departments. 

Alaan corporate cards are tailored to meet your business’s needs. Our cards have powerful controls like custom spending limits, vendor restrictions, and real-time expense tracking. With our platform, Alaan Corporate Cards simplify expense management and ensure complete financial transparency.

Eligibility and Application Process for Corporate Cards

To obtain a corporate card in the UAE, businesses must meet specific criteria set by issuers, which typically include:

1. Eligibility Requirements

Eligibility for a corporate card depends on various factors. In the UAE, issuers typically require:

• A certain level of annual revenue
• Official registration and a minimum operating period (usually six months to a year)
• A review of financial stability and creditworthiness to determine eligibility and credit limits

2. Required Information

Businesses must provide the following documentation to apply for a corporate card:

• Business Registration Documents: Proof of registration, often from a relevant authority like the Department of Economic Development
• Financial Statements: Recent reports showing revenue, expenses, and overall financial health
• Bank Statements: Typically, three to six months of statements to verify financial activity
• Identification of Authorised Users: Information on employees authorised to use the card, including IDs and relevant details

Providing accurate and complete information helps speed up the approval process.

3. Application Procedure

The application process for a corporate card involves these steps:

• Research and Select a Provider: Compare options based on credit limits, interest rates, fees, and perks to find the best fit for your business.
• Complete the Application: Submit a form with company details and financial information; many providers offer online applications for convenience.
• Submit Documentation: Attach necessary documents, such as financial statements and registration certificates, as required by the provider.
• Verification and Approval: The provider will conduct a credit check and review the business’s financials, typically completing the process in a few days to a couple of weeks.
• Receive and Configure the Card: Once approved, the card(s) will be issued. Most providers allow businesses to set spending limits and usage controls on each card for additional financial management.

This streamlined process helps SMEs secure a corporate card, empowering them with effective tools to manage expenses and cash flow efficiently. 

We’ve designed our application process to save time for SMEs, offering a streamlined setup that gets you operational faster. With intuitive tools and quick verification, you can start managing expenses efficiently without the usual delays.

Why Corporate Card Reconciliation is Essential

Effective reconciliation is a critical part of leveraging the benefits of corporate cards. By reconciling credit card transactions regularly, SMEs can maintain accurate records, prevent errors, comply with regulations, and ensure financial transparency. Let’s look at why corporate card reconciliation is crucial for SMEs focused on maintaining financial health and preparing for growth.

1. Ensures Accuracy of Financial Records

Aligning credit card transactions with internal records creates a clear financial baseline, enabling better insight into spending patterns and supporting accurate budgeting, decision-making, and tax compliance.

2. Prevents Errors and Detects Fraud

Reconciliation helps catch discrepancies early, such as unauthorised charges or duplicate expenses. By matching credit card statements with internal records, businesses can prevent fraud, foster accountability, and protect their financial resources.

3. Improves Compliance with Financial Regulations

Keeping accurate, up-to-date records through regular reconciliation ensures compliance with local VAT, GAAP, and other financial regulations. For businesses operating across multiple regions, regular reconciliation simplifies compliance and reduces the risk of penalties.

4. Supports Financial Transparency and Audit Readiness

Maintaining updated financial records is essential for building trust with stakeholders, from investors and partners to regulators. Accurate and transparent records also simplify audits, reducing stress and ensuring your business is always prepared for compliance checks.

By establishing regular reconciliation practices, SMEs in the UAE can fully leverage corporate cards, enhancing financial control, promoting transparency, and setting a foundation for long-term growth.

At Alaan, we simplify reconciliation by allowing you to upload receipts with one click, eliminating the hassle of lost bills. Our platform offers real-time visibility and control over all your expenses, ensuring your financial records are accurate and compliant, saving time and reducing administrative burdens.

Types of Corporate Card Reconciliation

Choosing the right reconciliation method can save time, reduce errors, and provide SMEs with a clearer view of their finances. Here are two primary reconciliation methods suited for corporate cards:

1. Statement-Based Reconciliation

This approach involves matching each transaction in the company’s internal records with the corporate card statement from the bank. By cross-referencing transactions in real-time, SMEs can spot and resolve discrepancies quickly, ensuring accurate budget tracking and reducing the risk of misreporting. 

2. Merchant Service Reconciliation

This approach confirms that corporate card transactions match payments made to specific merchants, verifying the accuracy of each charge. Regular merchant reconciliation helps SMEs catch issues like incorrect or duplicate charges, ensuring that only authorised expenses are recorded and improving financial control.

These reconciliation methods provide SMEs with clearer, more accurate financial records, helping to maintain control over expenses and supporting smarter decision-making. 

At Alaan, we simplify both statement-based and merchant service reconciliation by automatically matching transactions with receipts and merchant details. This reduces errors, improves accuracy, and allows you to effortlessly manage your finances.

Conclusion

Corporate cards have become an essential tool for businesses, helping streamline expenses, improve transparency, and ensure financial control. For SMEs in the UAE, these cards offer a way to simplify daily operations, manage cash flow, and focus on growth. By adopting a structured approach to reconciliation and leveraging the right tools, businesses can transform their financial management practices.

At Alaan, we provide corporate cards and an advanced expense management platform that works together to bring unparalleled control and efficiency to your financial operations. Our solutions simplify expense tracking, automate VAT compliance, and give you real-time insights, helping your business stay compliant and optimise spending.

Curious about how we can help streamline your business finances? Schedule a free demo with us today and experience smarter expense management tailored to your needs.