Divvy offers a comprehensive set of business management tools, designed to help you understand and manage your business financials. That includes a business credit card to give you and your employees more spending power.
It’s a free service for the most part, but there are some premium add-ons that do cost money. And it requires a credit application, based on your business credit rather than personal credit (but personal credit may be used if your business credit doesn’t qualify).
Small and medium-sized business owners can use Divvy to make and stay within budgets, with real-time expense monitoring online and by mobile app so you never miss a beat. It could be useful for any business that spends regularly, but those with many employees who spend on behalf of the company will get the most out of Divvy.
What Is Divvy?
Divvy is a variety of business services rolled into one package:
- A “smart” corporate/business credit card, with rewards and perks
- Budgeting software
- Expense management software
And as of July 2021, accounts payable/invoice management software is on the way, too.
Divvy is meant to be an all-in-one finance management package; if you’re just looking for a simple business credit card, Divvy may be more than you need.
How Do I Qualify For Divvy?
You’ll start out by applying for the Divvy Smart Credit Card, which gives you a dedicated business credit line. You’ll need a U.S. tax ID or EIN, or you must use a U.S. bank.
If you have business credit already, Divvy will try to approve you based on that. Credit lines will be based in part on cash supply. If you don’t have business credit, or it’s not good enough, Divvy will try to approve you based on your personal credit. In that case you’ll likely need to sign a personal guarantee, which means you’ll be on the hook for the debt (rather than the business).
Either way, your Divvy credit card activity will be reported to Small Business Financial Exchange. This can help establish and improve your business credit history and business credit scores, assuming you use the card responsibly.
Divvy Credit Card
The Divvy Credit Card shares many features with typical credit cards, like rewards and benefits. But its main purpose is to give you spending power and integrate with budgeting and expense management tools. There’s no annual fee, and you can pay off the card weekly, semi-monthly, or monthly; you can’t carry a balance from month to month.
You can give free copies of your Divvy business card to as many employees as you’d like, each with its own spending limits and controls. Overall and per-card budgets are easily enforceable from the Divvy dashboard, and each purchase can be automatically categorized and tracked. All spending is automatically integrated with Divvy’s budget and expense management tools.
Employee cards can be managed on the fly. Materials cost more than expected? You can add funds to an employee’s card in moments. Nervous about someone new using the company card? You can monitor spending in real time to catch problems without waiting for expense reconciliation at the end of the month. Employee cards can only be used for purchases; cash advances (getting money out of an ATM) are not allowed.
The Divvy card comes with one of several reward programs, depending on how often you pay it off. The more often you pay, the more rewards you’ll earn.
|Weekly Payoff||Semi-Monthly Payoff||Monthly Payoff|
Reward points are worth 1 cent each at most (via Divvy Travel redemptions), giving you a maximum 7% cash back equivalent. Points are fun, and they can cut down on overall costs a bit, but for most businesses Divvy’s real value will probably come from the efficient budget and expense reporting tools.
You can create virtual credit cards with Divvy, a useful feature that helps protect your account information and your budget. Virtual cards are like digital copies of credit cards, with unique card numbers.
Rather than having one card for all your spending, you can assign a virtual card for each merchant you do business with, or each recurring subscription. Then, if those card details are compromised, it’s easy to freeze or delete that one virtual card and generate a new one — no need to update all your payment information. And you can set spend limits with virtual cards just like physical cards.
You can also set up one-time use “burner” cards, which are good for projects with an expiration date or limited spend.
Divvy Budgeting Software
It can be hard to manage a lot of employees doing a lot of company spending, so Divvy aims to make it easy to, yes, divvy out your funds (i.e., your Divvy Credit Card’s credit line). You can do this in real time, online or from the mobile app.
Divvy’s budget dashboard gives you an overview of your various budgets, funds, projects, and team members. Having a budget is great, but if you can’t clearly see money coming in and going out, it’ll be a challenge to adjust and grow as a business. Divvy wants you to be able to track every penny, if that’s what you need.
Designate managers, and they can set up budgets, goals, budget owners, and team members. Budget owners can allocate funds as needed, for projects, events, or specific team members (by loading their Divvy cards).
So, you get all the budgets:
- You can set up multiple high-level budgets, either one-time or recurring.
- Each budget can include projects and events, which can all have their own budgets.
- Each team member of a budget can have his or her own budget.
- Each virtual card can have its own budget.
Spending can be tracked as it happens; along with pre-spend approvals, that makes it relatively easy to prevent budget mishaps. You can get comprehensive budget notifications with the mobile app, if you want that level of visibility. Tech companies with many employees working on many projects could see a lot of value here.
When you load a team member’s Divvy card with $10,000, for example, any spending above $10,000 will be declined. If someone needs to make a bigger purchase, the employee can request more funds within the app. The budget owner gets a phone notification, and can approve the request in seconds.
For insight into the future of your business, Divvy uses past spending habits to forecast budgets for coming months.
Expense management with Divvy is broken down into four main features:
- Expense automation
- Accounting integrations
- Subscription management
Your finance team can track all spending with Divvy cards in real time, while Divvy prompts employees to properly label and categorize their receipts. Every time an employee makes a purchase, he or she will get a mobile notification to add the required information. You can customize the required fields for each type of transaction, and employees can add extra notes if necessary. Incomplete receipts are marked on the transaction overview page.
Pre-filled forms make it easy to categorize transactions and add the appropriate details. Once your receipts are in order, you can sync everything to QuickBooks and some other online accounting programs, saving some of the hassle of manual receipt reconciliation.
Employee reimbursements and expense tracking are pretty simple. If someone has an out-of-pocket or mileage expense, he or she can snap a photo of the receipt and upload it to Divvy. A budget owner can give initial approval or denial, before the reimbursement request goes to an admin. Reimbursements come from payroll, and the request gets tied to a specific budget to keep everything neat and tidy.
Virtual cards with monthly budgets can be used to effectively manage recurring subscription services. If you have a $100-per-month subscription, you can create a virtual card specifically for that service, with a $100 monthly budget. The service provider will never be able to overbill you, and every transaction can be automatically categorized for accounting.
Like many business credit card companies, Divvy comes with a travel booking service — Divvy Travel.
Divvy Travel is powered by TravelPerk, which provides “the world’s largest flight, hotel, and ground transportation inventory, 24/7 customer support, and a fast and reliable reporting system.” That includes help traveling post-COVID-19.
Travel bookings are incorporated into Divvy’s budget and expense management tools, of course. You’ll enjoy the same visibility and controls over travel spending that Divvy provides elsewhere.
And here’s an interesting feature: If you need to change or cancel a trip, even at the last second, you’ll get 80% of your money back. It’s not 100%, but it’s better than many other booking agencies.
In a jam? Divvy says its travel customer support team will respond in 15 seconds, which sounds like a tough promise to keep, but maybe it’s true. Divvy claims fast customer support in other contexts, too; hopefully they maintain this level of attention.
Is Divvy Legit?
Should you use Divvy? If you’d like an all-in-one corporate credit card and spend management platform, it might be worth a shot, especially since there are no fees involved for most services.
The more employees and company spending you have, the more useful Divvy will be. It should make your life and the lives of your employees easier, providing a clear picture of your budget and where your money is going every day. Automation and real-time reporting tools should reveal your day-to-day activities without delay, letting you adjust now rather than waiting for budget/expense reports later.
Remember that you’ll need to pay your credit card bill monthly, at least. If you need a card that’ll let you float some debt from month to month you’ll have to look elsewhere.
Some corporate card alternatives to the Divvy platform include:
- Brex Daily Card (Review) and Brex 30 Card (Review): Brex is another inexpensive and rewarding all-in-one package, with a business card and spend management platform. Corporations and non-individual liability companies only; sole proprietors and unregistered businesses do not qualify.
- Stripe Corporate Card: Invite only (you can request an invite); comes with custom spend controls and real-time reporting.
- American Express Corporate Cards: A variety of cards for different purposes, from high-end travel to spend management; require revenue above $4 million.