Corporate Credit Card vs. Credit Terms: Which is Better for Business Travel?

Business travel often comes with its own set of challenges – from unpredictable costs to tedious paperwork and slow reimbursement processes. Airfares, hotel rates, and other travel expenses can fluctuate without warning, making it difficult for businesses to forecast and manage budgets effectively. In today’s fast-paced world, where many professionals are constantly on the move, every trip presents an opportunity to unlock added value.  

In fact, 76% of business professionals now prioritise getting the most from their travel benefits. Choosing the right financial solution—whether a corporate credit card or traditional credit terms—can do more than streamline payments; it can open the door to perks like cashback and reward points, ultimately transforming the way businesses manage travel. 

Read on to discover how choosing the right payment solution can help savvy professionals enhance the travel experience while supporting long-term, sustainable business growth. 

Key benefits of business travel credit card

For many businesses, especially small and medium-sized enterprises, the advantages of using a business travel credit card go beyond simple convenience. These specialised financial tools offer tailored features that can improve cash flow, simplify expense management, and even unlock meaningful savings. 

• Higher credit limits  

Unlike personal credit cards, corporate travel cards typically offer higher spending limits, enabling businesses to cover large travel expenses—such as international flights, accommodation, and event costs—without immediate cash outflow. This provides much-needed flexibility for managing operational expenses without disrupting day-to-day cash flow. 

• Built-in expense tracking tools 

Managing multiple employee expenses during business trips can be a challenge. Business travel cards often come with integrated expense tracking systems, making it easier for finance teams to monitor spending, manage budgets, and simplify reporting. By reducing administrative workloads, businesses can focus more on core operations rather than processing expense claims.  

• Rewards programmes 

One of the major appeals of corporate travel cards is access to reward schemes. Companies can earn points, cashback, or air miles on eligible purchases, which can be reinvested into future travel or operational costs. With nearly 60% of users prioritising travel benefits when selecting a financial solution, it’s clear that such perks are not just ‘nice to have’, but a strategic advantage. Many providers also offer introductory bonuses, with businesses able to collect substantial rewards—such as 100,000 points—after meeting minimum spending thresholds within the first few months.  

• Improved cash flow and financial control 

A recent survey revealed that 65% of companies reported improved cash flow management after adopting corporate card solutions. By offering delayed payment terms and structured oversight of spending, business travel credit cards help organisations manage working capital more effectively. 

• Operational efficiency and travel perks 

With automated reporting, simplified approvals, and control over individual spending limits, these cards help streamline financial processes—allowing businesses to focus on growth instead of administrative tasks. In addition, many cards come with travel-specific benefits such as complimentary travel insurance, airport lounge access, and discounts on flights and hotels—ideal for companies whose employees frequently travel to explore new markets or attend industry events.  

What is a business travel credit card? 

A business travel credit card is a financial tool tailored specifically for companies to manage their corporate travel spending more efficiently. Unlike personal credit cards, these are designed with features that meet the demands of business travellers, offering benefits such as simplified expense management, travel perks, and spending controls. 

Typically issued to business owners or authorised employees, business travel cards come with predefined budgets and restrictions, ensuring that spending is limited to work-related expenses. This makes it easier for companies to maintain financial control while providing staff with a convenient and flexible way to manage travel costs. 

The popularity of business travel cards is growing rapidly. In 2024, around 70% of small to medium-sized enterprises adopted such solutions for day-to-day transactions, signalling a clear move towards financial technologies that improve operational efficiency. For many, the benefits extend beyond convenience: a recent survey found that 65% of businesses reported improved cash flow management after adopting these solutions, freeing up resources to focus on core activities. 

For larger organisations, the value is equally clear, with over 80% reporting that these cards help streamline procurement processes. In total, corporate spending via these products reached an impressive $200 billion globally last year, with reward programmes playing a key role in driving usage. In fact, 50% of cardholders actively participate in rewards schemes, while nearly 60% prioritise travel-related benefits when choosing their financial solution—highlighting the strong link between travel perks and overall satisfaction. 

With features like travel insurance, lounge access, automated expense tracking, and the ability to earn miles or cashback on eligible purchases, a business travel credit card offers companies not only financial oversight but also a way to enhance the travel experience for their employees. 

What are credit terms in business travel? 

While business travel credit cards are designed to simplify and manage expenses in real time, some companies still rely on credit terms as a more traditional payment method for corporate travel. Rather than using a card at the point of purchase, businesses using credit terms are invoiced for travel costs after the service is provided, with a set period to settle the bill—commonly 30, 60, or 90 days (known as Net 30, Net 60, or Net 90). 

In simple terms, credit terms allow companies to pay for flights, accommodation, or other services after the trip, giving them more time to manage cash flow. However, this method lacks many of the perks offered by corporate cards, such as rewards programmes, cashback, and real-time expense tracking. 

Some suppliers may incentivise early payments with discounts (for example, a 2% discount if paid within 10 days), but interest charges can apply if invoices aren’t paid on time. Clear payment schedules and late payment penalties are usually outlined upfront to help businesses avoid financial strain. 

It’s important not to confuse credit terms with travel credits. In corporate travel, travel credits typically refer to funds held from cancelled or changed bookings. These are often linked to specific airlines and can usually only be applied towards future bookings with the same provider—subject to the original ticket’s conditions. They aren’t general credits that can be used interchangeably across suppliers. 

In essence, credit terms provide a post-travel invoicing solution for businesses that prefer deferred payments, while travel credits relate specifically to unused airfare credit from previous bookings. 

Key benefits of credit terms in business travel 

While business travel credit cards offer real-time spending and rewards, credit terms provide businesses with structured post-payment solutions that can significantly support cash flow and supplier relationships. Here’s how credit terms can benefit corporate travel management:  

• Improved cash flow management  

Credit terms allow companies to defer payments for flights, hotels, and other travel services, often for 30, 60, or 90 days after invoicing. By delaying outgoings, businesses can better manage their cash flow, ensuring sufficient liquidity for daily operations and unexpected expenses. 

• Flexible payment periods  

Agreed periods such as Net 30 or Net 60 offer predictability and flexibility, letting companies plan financial outflows more effectively. This is especially useful when handling high volumes of corporate travel or large-scale events requiring upfront arrangements. 

• Early payment discounts  

Many suppliers offer incentives for early settlement—such as a 2% discount for paying within 10 days—giving businesses the opportunity to reduce costs while improving supplier relationships. 

• Reduced immediate financial pressure  

Unlike credit cards that settle transactions immediately, credit terms remove the need for upfront payments, making them ideal for companies with fluctuating travel needs or seasonal business cycles. 

• Strengthened supplier relations  

Negotiating favourable credit terms—especially with long-standing, reliable suppliers—can build trust and support long-term partnerships. Flexible terms may include extended payment periods or customised invoicing schedules, tailored to the company’s financial position. 

• Simplified budgeting and reconciliation  

Instead of reconciling numerous card transactions individually, businesses receive consolidated invoices under credit terms, simplifying budget tracking and administrative processes. 

• Useful for international trade and large-scale procurement  

For businesses operating across borders or managing large travel volumes, credit terms can help balance currency risks, support global supplier agreements, and facilitate smoother procurement processes. 

Choosing the right payment method for your business  

When managing corporate travel expenses, selecting the right payment method can make a significant difference to your operations. Here’s a simplified comparison of business travel credit cards versus credit terms to help you decide: 

Learn more about managing corporate travel expenses with Holiday Tours  

At Holiday Tours & Travel, we go beyond bookings to help businesses optimise their corporate travel management. From streamlined expense solutions to customised travel programmes and dedicated account management, our team supports you every step of the way. 

Whether you’re exploring corporate credit cards, negotiating credit terms, or simply seeking to enhance your employees’ travel experience, our experts can help craft the right strategy for your organisation. 

DISCOVER SMARTER WAYS TO MANAGE BUSINESS TRAVEL  

REACH OUT TO US AT +603 2303 9100 (PRESS 3) OR [email protected] 

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• Best Ways to Master Supplier Negotiations in Corporate Travel
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