Divvy Overview – Credit score Playing cards & Expense Managment for Companies

Name it a cliche, however credit score actually is the lifeblood of most small companies. All of the discuss of bootstrapping and expense-slashing can’t cover the truth that your organization’s fortunes rely upon dependable entry to capital now — and never three months and even three weeks from now.

Divvy is one among many enterprise credit score suppliers that helps small and midsize companies faucet money after they want it most. It goes a step additional with highly effective spend monitoring and expense administration instruments too. It’s a formidable software that each rising enterprise ought to assume severely about including.

Oh, and Divvy is completely free for customers, which makes it all of the extra spectacular. I analyze enterprise financial institution accounts and small enterprise bank cards for a residing, and whereas I can’t say Divvy is completely distinctive, the one-two-three punch of no charges, scalable enterprise credit score, and expansive cash administration instruments legitimately units it aside. See what to anticipate from Divvy and determine whether or not it’s proper to your firm.

What Is Divvy?

Divvy affords primary monetary providers to small and midsize companies. At its core is a versatile enterprise credit score line that may scale with your corporation. It additionally has enterprise budgeting and expense administration instruments that assist simplify even probably the most advanced industrial funds.

Divvy doesn’t have any charges for customers. It makes cash via card interchange charges, which come out of the online obtained by retailers you pay with Divvy. Since you entry your Divvy enterprise credit score line via a company cost card that you have to pay in full every assertion cycle, you don’t pay any curiosity on the float. 

Divvy’s most notable advantages embrace a customizable card rewards program with qualifying spend, a robust cellular app, and seamless integrations with exterior accounting software program.

How Divvy Stacks Up

Divvy isn’t the world’s solely enterprise credit score answer, in fact. It competes towards a slew of small-business bank cards and mortgage suppliers, every with their very own strengths and weaknesses.

One in every of Divvy’s better-known rivals is the Chase Ink Enterprise bank card household, which incorporates three names: Ink Enterprise Most popular, Ink Enterprise Money, and Ink Enterprise Limitless. See how Divvy compares to Chase’s small-business bank card lineup.

What Units Divvy Aside?

Divvy stands out for a lot of causes, however these 4 particularly stand out to me as somebody who spends hours wading via monetary wonderful print each week.

• No Curiosity. Divvy is a cost card, not a bank card. Meaning it’s a must to repay your fees in full on the finish of every billing interval. Whereas this isn’t uncommon on this planet of enterprise credit score, it’s necessary as a result of it means you’ll by no means pay curiosity on Divvy attracts.
• No Month-to-month or Annual Charges Charges. Divvy is considerably uncommon amongst enterprise credit score suppliers in its complete lack of month-to-month or annual charges to make use of the product. Divvy makes cash on the again finish, via cuts of funds made to retailers.
• Acceptable for Companies With No Credit score Historical past. Divvy affords a secured credit score line for companies that don’t qualify for unsecured traces. Usually, meaning new companies with no credit score historical past and companies with restricted or irregular income.
• Highly effective Monetary Software program Constructed Into the App. Divvy has in depth budgeting and expense administration instruments that combine seamlessly with its credit score providers. It’s highly effective sufficient to interchange your present enterprise budgeting software program, for positive.

Key Options of Divvy

Divvy has three core options: 

• A industrial credit score line (technically, a company cost card)
• Enterprise budgeting software program
• Expense administration software program

The software program is completely free for Divvy customers, no matter enterprise dimension, although Divvy makes clear that its options are meant for companies with fewer than 500 staff. Divvy makes cash via card interchange charges, that means it takes a small slice of each transaction you make earlier than passing the funds alongside to the service provider.

Enterprise Credit score

The Divvy Card is the versatile credit score line on the coronary heart of the Divvy ecosystem. It knits the opposite two primary Divvy options — budgeting and expense administration — collectively.

These are an important parts of the Divvy Card:

• Pay in Full. The Divvy Card is a cost card, not a bank card. This implies you have to pay your fees in full on the finish of the billing interval. This shouldn’t be an issue if your corporation has regular earnings, and it’s a blessing in disguise since you’ll by no means pay curiosity.
• Versatile Credit score Line. Divvy is aware of your corporation is greater than a credit score rating. It considers income, development potential, and different nontraditional elements in underwriting, which may result in a better preliminary credit score line. And your credit score line can scale as your income will increase — you’ll be able to apply for a rise with only a few faucets within the app.
• As Many Digital Playing cards As You Want. Divvy generates digital playing cards on demand everytime you want them. I personally love digital playing cards — they’re clutch for one-time and recurring bills the place you don’t need the seller to have entry to your actual card quantity.
• No Upfront Charges for Worker Playing cards. Divvy doesn’t cost any upfront or setup charges for worker playing cards. Irrespective of how many individuals are in your workforce, you’ll be able to hook every up with a person Divvy card. 
• Enforceable Budgets and Spend Controls. When you’re nervous about giving newer staff a card of their very own, Divvy has customizable spend controls that make it unattainable for workers to overspend. I’d suggest setting spend limits based mostly on function and seniority.
• Common Credit score Reporting. Divvy studies your credit score utilization and funds to the Small Enterprise Monetary Change (SBFE), a nonprofit enterprise credit score reporting company. Use your card responsibly and also you’ll construct enterprise credit score over time.
• Secured Credit score Strains If You Don’t Qualify for an Unsecured Line. The usual Divvy credit score line is unsecured, similar to an everyday bank card. When you don’t qualify on account of restricted enterprise credit score historical past or earnings, you’ll be able to prefund a secured Divvy Card and nonetheless profit from the pliability of a credit score line.

The Divvy Card has a versatile rewards program that earns as much as 7 factors per $1 spent (7x) on eligible purchases. It’s essential to draw a minimum of 30% of your accessible credit score to earn rewards in any given billing interval, and your precise earn charge is determined by your reimbursement frequency.

Right here’s how that appears:

You possibly can redeem factors for journey purchases, present playing cards, assertion credit, or straight money again. You get probably the most worth for journey redemptions — $0.01 per level — and about $0.005 per level for all different choices. So for those who or your workforce commonly journey for enterprise, Divvy is far more rewarding.

Spend Administration (Budgeting)

Divvy’s budgeting software makes it straightforward to create a tactical monetary plan for your corporation. 

If your organization is small and its funds comparatively easy, you’ll be able to keep on with a single funds that covers your complete enterprise. In any other case, create a number of budgets for departments or groups, including or eradicating staff from every funds as wanted.

Your Divvy budgets hyperlink to your Divvy worker playing cards. Because the funds proprietor, you’ll be able to require approval for each single worker card transaction or set preapprovals that enable small, routine transactions to undergo with out your say-so. However approval requests come straight to your Divvy app, so it’s straightforward sufficient to approve a transaction with out interrupting what you’re doing. As your group grows, you’ll be able to delegate this accountability to workforce leaders and division heads.

The hidden energy of Divvy’s budgeting software is its capability to identify overspending in actual time, earlier than it turns into a severe legal responsibility. And you’ll generate month-to-month studies that present a scientific, granular view of spending at a person, workforce, division, and firm stage. That makes it a lot simpler to regulate budgets on the fly.

Expense Administration

Divvy’s expense administration software is principally your funds or budgets in motion. It automates a lot of the busy work of enterprise accounting, like categorizing bills.

Divvy integrates with third-party accounting software program. So for those who use one other program to trace enterprise bills for tax or budgeting functions, you’ll be able to arrange your Divvy account to reflect what you’ve there. That eliminates time-consuming duplicate entries and ensures your exterior accounting workforce works off the identical data because the in-house people accountable for your organization budgets.

When you don’t use your Divvy credit score line for each enterprise expense — and also you most likely gained’t, a minimum of not at first — you should utilize Divvy to trace what it calls “off-card” bills too. That is actually necessary in case your staff use private bank cards to pay for journey, meals, and different incidental bills — merely enter the reimbursement in Divvy to make sure it’s tracked together with every part else.

Benefits of Divvy

Divvy is a complete enterprise credit score and cash administration software. The truth that it’s completely free to make use of grabs headlines, however there’s much more for enterprise homeowners to love about it.

• No Charges or Curiosity on Divvy Credit score Strains. Divvy Card credit score traces don’t cost charges or curiosity. This can be a large benefit over pay-over-time enterprise bank cards that may cost curiosity at 20% APR or increased and infrequently cost annual charges north of $100.
• Limitless Digital Playing cards. There’s no restrict on the variety of digital playing cards you’ll be able to generate with Divvy. Use them for recurring subscriptions, one-off funds, and every other state of affairs the place you’d favor to maintain your actual card quantity protected.
• Seamless Integration With Divvy Instruments and Exterior Accounting Platforms. Your Divvy Card account integrates seamlessly with Divvy’s budgeting and expense administration instruments. When you use an exterior accounting platform, you’ll be able to hook it as much as Divvy too. This can be a large think about why customers surveyed by Divvy stated it saved them 12 hours monthly on common.
• Versatile Spend Limits on Worker Playing cards. You’ve the ultimate say over how a lot your staff spend (or don’t) on their worker playing cards. And you’ll approve or decline transactions with a number of faucets. If overspending is the norm for your corporation, possibly Divvy is the reply.
• Versatile Rewards Program (As much as 7x Again). Divvy has an unusually beneficiant rewards program that incentivizes you to repay purchases sooner. Repay weekly and also you’ll earn as much as 7x on eligible purchases. That’s a 7% charge of return, which is best than most enterprise credit score suppliers.

Disadvantages of Divvy

Divvy isn’t excellent, although I feel it’s a lot better than the typical enterprise credit score supplier (and definitely higher than the typical enterprise bank card). Right here’s the place it falls a bit brief.

• Can’t Carry a Steadiness From Month to Month. If your corporation money circulation can’t assist repaying your Divvy fees in full a minimum of month-to-month, Divvy isn’t for you. The disadvantage, in fact, is that conventional enterprise bank cards cost curiosity at eye-watering charges.
• No Enterprise Financial institution Account. Divvy doesn’t have a built-in checking account, only a versatile credit score line. You’ll have to preserve your working capital elsewhere.

Is Divvy Legit?

Sure, Divvy is authentic. It obtained its begin as a budgeting and expense administration software for small and midsize companies, then expanded into enterprise credit score traces. Right now, following its 2021 acquisition by Invoice, it’s a robust enterprise finance bundle for corporations that wish to get a deal with on their budgets and bills — and faucet a versatile credit score line as wanted.

Divvy has the potential to save lots of enterprise customers severe cash: over $10,000 monthly, in response to a Divvy survey. Divvy saves time, too, on the order of 12 hours monthly for lively customers. And the overwhelming majority of Divvy customers would suggest it to others.

Options to Think about

Ultimate Phrase

Divvy affords a versatile credit score line with worker subaccounts (the Divvy Card), plus highly effective budgeting and expense administration instruments. It integrates with third-party accounting software program. It delivers excellent rewards on eligible spend.

And it’s completely free for enterprise customers.

Divvy appears like a great deal, and in my educated opinion, it’s. It actually shines for small however rising corporations with comparatively regular revenues, hawklike consideration to the underside line, and an aversion to forms and busy work. If that appears like your corporation, you’d be hard-pressed to discover a higher enterprise credit score accomplice.