If your company needs access to a credit line but with the flexibility of a business credit card, consider the . The lender provides funds to companies with all types of credit, as well as some savvy budgeting and expense management solutions.
What is the ?
Divvy is a spend and expense management platform for businesses with the added benefit of a business credit card. The company provides funds for small businesses as well as tools to manage spending and budgets.
What Type of Credit Card is the ?
Divvy is a corporate card. However, it does report balance and payment information to the Small Business Financial Exchange (SBFE), which then reports your payment behavior to several business and consumer credit bureaus.
Is Divvy a Credit Card?
Yes, Divvy is a credit card. It’s part of the Visa payment network and can be used for payment anywhere Visa credit cards are accepted. Divvy accounts are also granted a line of credit, which is an essential feature of credit cards.
Does the Run Your Personal Credit?
No. the is a corporate card and grants credit based on your organization’s credit history. It doesn’t rely on a personal guarantee.
How Does the Work?
The offers a credit line to businesses, as well as a Divvy card for any employee who needs access to the funds. With those funds, you can set up budgets for spending so that employees never have to go over what you’re willing to spend on a given expense category.
You can have physical cards for employees or virtual ones, and there’s a mobile app you can use to view and manage expenses.
Your company can use your line of credit for any business-related expenses, from rent to office supplies. You’ll have the opportunity to make monthly payments or pay off your balance in full.
In addition to the Smart Credit Card, the offers some other unique features. Its expense management tools let you instantly review and categorize business expenses and set enforceable budgets on different categories. You can also reimburse employees for out-of-pocket expenses they’ve covered.
Divvy Travel is a feature for business travelers and includes all the tools you need to book and manage travel and travel expenses. Additionally, Divvy has a Bill Pay feature that simplifies paying your company’s invoices digitally.
Divvy Credit Card Rewards
Divvy offers reward points for spending, including bonuses for spending at restaurants, hotels and recurring software subscriptions. In the Divvy Rewards program, the amount of points earned will vary depending on if you pay weekly, semi-monthly or monthly. Points can be redeemed for travel, gift cards, statement credits or cash back. But you’ll receive one cent in value per point redeemed for travel, but only approximately a half a cent per point for other gift cards, statement credits or cash back.
Pros and Cons of Divvy Credit Cards
If you’re considering the Divvy credit card or other features, here’s what you should consider first.
Pros
The reviews are overwhelmingly positive, with Divvy customers commenting on how easy it is to manage business expenses.
The also offers valuable rewards for spending, including bonus points for common business purchases.
And the Divvy app has good reviews too. While there have been a few complaints about the sluggishness of the app, Divvy customer service has been quick to respond and take action on issues reviewers mentioned.
Another perk is the fact that you can order a Divvy card for yourself and other employees, or you can get virtual cards to use online.
The can help you build business credit, since it reports your activity to the Small Business Financial Exchange (SBFE®). Also, if you have bad credit, you may still qualify for financing through Divvy.
One of the biggest benefits of working with this financing company is its many budgeting and spending tools. You can connect Divvy to your accounting software and streamline managing your finances. You can easily view expense reports and transactions as well as set budgets for expenses.
Cons
The major drawback is that Divvy’s site doesn’t list interest rates and fees, so you may not know what you’d pay until you get approved. Nor does the site mention the credit score or other qualifications you need for approval.
(Learn how to establish business credit so you qualify for the best rates!)
How Does the Compare?
It’s difficult to compare the to business credit cards in terms of interest rates, though Divvy does say it doesn’t charge any fees.
The main way this corporate card stands out is with its many expense and budgeting tools that can give your company better insight into where you’re spending your money, help you set controls so employees don’t overspend, and allow you to manage business travel from one central hub.
Who Should Use the ?
If your company wants an easy way to make purchases, whether that’s online or in a store, and if you have more than one employee who is authorized to charge expenses for your company, Divvy may be a great solution.
Also, if you could use a little help setting budgets and managing expenses, you’ll love those additional features that Divvy provides.
If you’re looking for larger loan amounts and have strong credit, you might consider other small business loans, since they put cash in your bank account and likely offer better rates than a credit card like Divvy’s.
What Credit Score is Needed to Qualify for the ?
Divvy doesn’t require a personal guarantee, so there’s no minimum credit score necessary. Divvy also offers a Credit Builder program for new businesses that don’t have an established credit history.
How to Apply for the
You can apply for the online. During the application you’ll need to provide your business’s information including its legal business name, physical address, mailing address, entity type and formation date. You’ll also need to provide financial information including your business’s tax ID or Employer Identification Number (EIN), its annual revenue, and your desired line of credit. Divvy also requires a secure connection to your business bank account. Other required information includes the beneficial owners, the name of a Divvy administrator in your company and an authorized signer.
Nav’s Verdict:
As a small business, you likely don’t have an entire finance team at your disposal. That’s why leveraging tools like Divvy make sense: with easy access to expense tracking tools, you’ll have a better handle on where your money is going, even if you’re no financial wizard.
It’s also a great way for you to earn rewards for your company purchases made by you and your employees.
And if you have employees who can use company credit cards, you can rest assured knowing that you’ve set spending limits to prevent them from blowing your business’ budget.
All in all, the offers a unique proposition with its Smart Credit Card combined with business finance management tools.
Beware, that the Divvy Visa card does not offer the same protections against fraud that a traditional VISA does. The cardholder can get stuck with fraud charges. If you read the contract with Divvy, you are responsible for ALL charges to your credit cards with certain exceptions, but you are expected to pay the fraudulent charges and they may or may not get refunded. We had fraud on one of our cards on Dec. 23rd and 24th. We notified Divvy. They do not monitor usage of your card like other card companies. We received no warning calls about multiple charges for $500 Visa gift cards at one merchant or for multiple charges for online shoe purchases from another merchant. We have received credit for $4000 of the $6000 in fraudulent charges and were told by Divvy that we would have to try to get a refund from the merchant as it would cost them more than $2000 to pursue it!!
I recentlly converted my one-person shop into a corporation. In other words, I’m profitable. Did divvy offer me credit? No, a “pre-paid card”. Uhhh, whatever. Yeah, that’s called Paypal. I’ll just continue using Paypal I guess? In other words, I really can’t say there is utility in that. Doh.
Maybe Divvy works well for small businesses with no employees (or none with their own card) or the home office, I can’t speak to those situations. As an employee of a company that switched to Divvy in late 2020, who uses the card mostly for travel expenses, simply put, it is not ready for prime time.
I cannot recommend Divvy, or the related travel site “Tripactions”, as they simply don’t function very well and my requests for help on the site have gone unanswered.
Some examples:
They sell you on being able to charge something, then take a picture of the receipt and upload it to the app on your phone. This is simply not very useful in the real world, unless you want to take the time to stop, make sure the receipt if flat so the image will be legible, take the picture, then open the app to upload the image. I prefer to scan in my receipt, I even have a scan app on my phone, plus many places, especially hotels, simply e-mail your receipt, but the Divvy app will not access ‘files’ on an iPhone, on pictures, so now I must either do a screen capture of the e-mailed PDF, then load that photo to the Divvy app, or do it on a computer (the computer version of the Divvy app will recognize PDFs).
Want to do a new reimbursement on your computer, that function hasn’t worked for at least 3 weeks. I did send a message to Divvy asking if this function could be fixed, 2 weeks later and no response and the function still doesn’t work. So now I must do new reimbursements on my phone, once submitted I can edit it on the computer where I have my travel request (submitted/approved by e-mail only), map and other info to be attached to each reimbursement.
Those e-receipts some (many) hotels are capable of, Divvy doesn’t recognize them.
I have gotten so frustrated with Divvy, I am keeping a list of issues, should I ever be able to actually talk to someone.
Maybe Divvy works for typical office business type expenses, buying office supplies, etc., but it does not perform well for folks who travel much or travel within federal govt. travel allowances (it doesn’t recognize these limits).
Awesome article! Great information on this new smart credit card for small businesses.
Hi my name is Charles Johnson I apply for the Divvy card an they never got back with me to let me no something…