Divvy credit card: Features, fees, eligibility

What is a BILL Divvy credit card

Divvy, now marketed as BILL Spend & Expense, is a business charge card designed for streamlined expense management. Unlike traditional credit cards, a charge card requires you to pay the full balance in each billing cycle, either weekly, semi-monthly, or monthly, depending on your plan.

Here’s what sets the BILL Divvy credit card apart from the rest:

• No personal guarantee: Approval is based on business financials and identity verification of beneficial owners or authorized signers, and not any personal liability.
• Expense management features: There are built-in tools for tracking Divvy card expenses and controlling employee spending.
• Card structure: BILL rewards frequent repayments. Paying your balance in full weekly earns the highest rewards.

You’ll likely prefer using the Divvy credit card for three major reasons, which include:

1. Administrative convenience: You can let your employees use the Divvy corporate card for purchasing work-related supplies, instead of handling out-of-pocket reimbursements.
2. Time saver: With the right business charge card, you can automate key financial processes such as accounting reconciliation of the credit card transactions and expense management, which helps you save a lot of time.
3. Point rewards: After 12 months and a minimum of 5,000 points earned, you’re eligible to redeem points earned on each purchase.

BILL Divvy credit card requirements

You must meet specific criteria to qualify for a Divvy business credit card. All of these requirements weigh the financial health of your business, rather than the personal credit profile alone:

1. Business formation

You must have a legally formed business in the US, and acceptable entities include:

• Corporation
• Partnership
• LLC
• Sole proprietorship

2. Business cash flow and revenue

Divvy requires a minimum of USD $20,000 in the business bank account and a consistent monthly cash flow as prime eligibility criteria. BILL also reviews your business banking history. If you have growing, seasonal, or consistent revenue, the chances of securing a higher credit line increase.

3. Business age

BILL doesn’t have a minimum time-in-business requirement for its corporate credit cards. Instead, eligibility is based on factors like business cash flow and personal credit history. This way, the Divvy card becomes accessible to sole proprietors and newer businesses, not just established enterprises.

4. Business bank account

Your business must have an active bank account in the US, which is necessary for financial verification and ongoing card account management. Divvy uses the bank account activity for assessing your financial health and determining the credit limit.

5. Personal credit score

BILL sets no minimum credit score requirements for its Divvy credit card. You can qualify for it, even with bad credit. The approval majorly depends on your business cash flow, and BILL only does a soft check on the credit score without affecting it.

6. Legal compliance

Your business must comply with all applicable laws or regulations in the US. Additionally, it shouldn’t engage in prohibited industries like cannabis or gambling, as stated by Divvy.

Here are the fees and some other requirements to take into account for attaining a BILL Divvy business credit card:

BILL Divvy credit card: Eligibility

An ideal candidate for a BILL Divvy business credit card is an established US business with an active account and predictable cash flow. This card isn’t a fit for entirely new startups having no revenue history or the ones building their credit profile from scratch.

How does Divvy decide your credit limit

Your cash balance and account activity are the initial factors Divvy analyzes for dynamically setting your initial credit limits. There’s no fixed formula to it, or a published minimum limit.

Businesses with a cash balance of USD $20,000-USD $50,000 often start with lower limits. On the other hand, if you have a stronger cash balance and longer account history, you may receive higher limits, ranging from USD $1,000 to USD $5,000,000, depending on your financial profile.

Credit line structures:

BILL offers three underwriting structures, and you will be assigned one based on your business profile:

• Fixed line: A set credit amount determined at the time of application, based on business financials and overall creditworthiness. This limit will stay constant unless you request an increase.
• Variable line: This limit scales dynamically with the cash flow, revenue, and spending pattern of your business. This way, it can adjust up or down, depending on your financial activities.
• Pre-fund: In this structure, funds are provided upfront, securing your spending and giving you a credit line backed by the funds that you have already deposited.

Steps to apply for a Divvy credit card

1. Keep your business details handy

Before you start the Divvy card application, keep these business details ready to speed up the process:

• EIN number
• Legal business name
• Business address
• Annual revenue figures
• Business bank account details
• Personal information for authorized signer

2. Visit the BILL Divvy website to initiate your application

Go to bill.com to begin your application. Go to the BILL Spend & Expense section and fill out the online form, which takes only a few minutes.

3. Connect your business bank account

Link your bank account when prompted, which is an essential step for getting approval. In this step, Divvy verifies your cash flow and determines the eligible credit limit.

4. Wait for approval and activate your charge card

Approval decisions come within minutes or might take a few business days, depending on how quickly Divvy validates your details and bank account. Once approved, activate your virtual and physical Divvy cards, and start using them right away.

Features of BILL Divvy business credit cards

Here are some of the compelling features you get upon using Divvy corporate cards for your business expense management:

Earn rewards on every spend

Earning point-based rewards with every spend will help you maximize the benefits you acquire from the business credit card. Here’s an overview of Divvy’s reward system:

Reward restrictions

• Rewards apply only to eligible transactions. Not every purchase qualifies for the same.
• Category multipliers apply to the first USD $5,000 of monthly spend in that particular category. Once you reach the threshold limit, eligible transactions will then earn the flat, “everything else” multiplier instead.
• Rewards can be forfeited if the monthly spend falls below the applicable threshold.
• Reward redemption only opens up after an initial 12-month holding period, and you need a minimum of 5,000 points to redeem.
• Certain transactions are excluded from earning rewards altogether.

Builds a stronger credit score

Using the BILL Divvy business credit card and making timely payments, you can build a strong credit rating for your business, as BILL reports customers’ credit performance to the Small Business Financial Exchange (SBFE). This is an appealing benefit for sole proprietors or small businesses.

Automate expense processing

Divvy credit card is integrated with BILL’s expense management platform. Managers can now set recurring or one-time budgets, set spending limits, control merchant spending, and monitor usage in real-time. This keeps your card expenses within budget. Automation also speeds up expense processing and reporting and reduces error rates.

Manage your card spending from the mobile app

You get a dedicated mobile application to control your card spending on the go. You can also request funds, make purchases, capture receipts, and track your budgets, all from the same mobile app.

Supports quick integrations

Divvy card supports two-way integration and data sync with Oracle NetSuite, QuickBooks, Sage Intacct, Acumatica, and Xero, keeping your books accurate with reduced manual data entry efforts.

An alternative worth comparing: Aspire’s corporate cards

Businesses comparing Divvy with Aspire1 corporate card2 may want to evaluate the underwriting model, repayment structure, rewards, international spending capabilities, and expense controls rather than relying on a single cash-balance or personal-credit threshold

Every purchase using the Aspire card2 earns 1.5% uncapped cashback^ on eligible spend. You also get instant virtual cards, real-time transaction control, and customizable limits. Just like a Divvy credit card, Aspire’s card also bills the full balance due in each cycle. Explore Aspire’s website to learn more.