The Divvy card is an innovative smart business credit card designed to simplify expense reporting and budgeting processes with software integration. No personal guarantee is required and reports to business credit bureaus.
Divvy has received mixed reviews due to issues surrounding its transparency. Here’s everything you should know about its new small business credit card offering.
How it works
Divvy is designed to assist small businesses in better managing expenses and budgeting by combining the functionality of a credit card, expense management software, and prepaid debit card into one convenient tool. In addition, this card will report card balances and payments to commercial credit bureaus such as Dun & Bradstreet and Equifax so you can build up a positive business credit history – making financing with more favorable rates/terms easier, trade deals negotiated more successfully, potential investors more receptive and improving your odds for growth/investment opportunities!
The Divvy card is a Mastercard-branded charge card you can use anywhere Mastercard is accepted, featuring expense reporting and automation, spend control, budgeting software and above-average rewards. Furthermore, unlike many business credit cards it does not require personal guarantees or hard inquiries to qualify for.
No annual fees apply and it’s possible to issue unlimited physical and virtual cards per employee. With the Divvy app you can track each card’s spending activity, set spending limits on them (called “budgets”), manage subscriptions with one-time purchases or auto renewal, manage subscriptions more effectively and monitor subscription renewals with one-off purchases or automatic renewals.
Divvy offers another innovative feature, in that your monthly card balance will automatically be split among three categories – cash back, gift cards and statement credit – each earning different rewards depending on payment frequency. Your rewards can be redeemed for Divvy Travel packages or cash-back on specific purchases; or as statement credit that can be spent anywhere accepting Visa cards.
Getting started
After beginning as a budgeting and expense management tool, Divvy has evolved into offering business credit lines. Their latest product (formerly Divvy Credit) is a VISA card that rewards businesses for spending while providing a flexible credit line that scales with their business growth. Furthermore, this solution eliminates fees while saving users time while helping build up business credit simultaneously.
Divvy Card operates more like a charge card than credit card, meaning that you cannot carry a balance or make late payments. Your business’s bank deposits determine an initial credit limit which scales with revenue growth; should it feel that you pose high-risk spending habits, however, secured cards may require cash deposits as backup in order to provide your initial line.
Divvy is available free for business users, providing real-time visibility into spending. It includes powerful budgeting tools and can integrate with accounting software to automate expense-management processes. Multiple cardholders may use it simultaneously with individual spending limits that can be adjusted instantly in real time; reimbursement and funding requests can also be approved or denied instantly via mobile notifications.
Divvy cards are intended for small but growing companies with steady revenues and an eye toward the bottom line, who prefer minimal bureaucracy and busy work. Unfortunately, the company does not publicize borrower requirements for its credit cards – leading applicants who get denied without knowing why to become increasingly frustrated and lose time as their application gets denied without understanding why their application was denied. Publishing minimum requirements could help avoid this frustration altogether and save much needed time in application processing.
Rewards
The Divvy card provides rewards on spending and is integrated with financial management software to assist companies in controlling company spend, creating budgets, and automating expense reporting. It’s an ideal solution for small business owners looking to streamline their expense management process and is also known for its customer service – offering email support, advanced QuickBooks integrations, Android fingerprint scanning capability and Apple Touch/Face ID compatibility on its mobile app among many other features.
The card’s benefits include a weekly payoff plan, 7X points on restaurants and hotels, 2X on software subscriptions and 1.5X for everything else – as well as Mastercard’s popular credit card perks such as car rental insurance, MasterAssist medical services and 24-hour customer support.
An additional attractive feature is Divvy’s variable credit limit that can adapt to your cash flow, providing flexibility based on seasonal business fluctuations or busy travel periods. Plus, keeping tabs on spending and balance is made simple via their mobile app!
Divvy business credit cards are available to US businesses with an EIN, which can be obtained by calling their customer service number or filling out an online application. Although traditional credit checks aren’t conducted for approvals, Divvy does use its own underwriting criteria that takes into account factors like revenue and time in business when making decisions on approvals – an advantage for those that may not meet other business credit card qualifications due to low personal credit scores or inexperience. Even if you’re denied, however, they offer a credit builder product which lets pre-fund your line so you can spend on it monthly while building up positive payment histories!
Virtual cards
Divvy’s card is not the only option available to small business owners who wish to manage spending and expense reporting, but it is one of few that offers a comprehensive budgeting and expense management platform, featuring physical cards as well as software which make it simple for managers and employees alike to get approvals, track spending, and generate reports of expenses incurred.
This business credit card is tailored for companies of all sizes, without minimum annual revenue or bank balance requirements. Businesses can choose their payment frequency–weekly, semi-weekly or monthly–which impacts how rewards accrue for them. Divvy also offers an easy rewards-estimating tool on their website which shows potential earnings based on redemption methods such as statement credits, cash back or gift cards purchased through them and travel booked directly through them.
As this card is a charge card, any outstanding balances must be settled in full by their monthly due date. To apply, companies will require certain information, such as their legal business name, physical address, entity type and EIN or tax ID number; additionally any owners with 25%+ ownership in their business must submit social security numbers and dates of birth for them and all associated individuals.
Divvy provides managers and employees with real-time access to spending data, allowing them to set budgets by event, team, location, project, vendor or virtual card – creating cards for each of these categories with monthly spending limits assigned remotely – managing them remotely as well. Virtual cards may also be used to restrict spending at specific locations or vendors as well as block unauthorized spending or subscriptions.
Payment options
Divvy is a business credit card equipped with software integrations to streamline expense reporting and budgeting, as well as offering up to 7x on restaurant spending and 5x on hotel spending in rewards programs. However, its sign-up bonuses and premium perks compare poorly against top business cards in this space.
Divvy differs from traditional business credit cards in that it does not provide revolving credit with the option to carry over balances between billing cycles; rather, this charge card requires any funds spent be paid in full within one or two weeks after purchase.
When applying with this company, no traditional credit check is performed – instead calculating a spending limit based on an average of your monthly bank deposits instead. In cases with high risk scores or other indicators that a deposit may be necessary as security for an initial credit line.
Divvy allows businesses with variable expenses and travel habits to customize their payment cycles on a weekly basis, making the service suitable for businesses whose expenditure varies considerably over time. Their online tool estimates rewards redemption values based on total spend; travel purchases usually fetch the highest rewards redemption values.
Although Divvy stands out by offering flexible business credit cards with built-in budgeting and expense management tools, there can still be drawbacks to consider. One issue is a lack of website transparency regarding application requirements and extra card fees which could discourage some businesses. Furthermore, rewards may not justify themselves for many small businesses spending minimal amounts each month on food or hotels – however if you’re searching for smart free business credit cards then give Divvy serious consideration!