Summary: Fluctuating revenue (common in cyclical or project-based startups) can lead to unstable corporate card limits or sudden reductions, which is disastrous for operations. Startups with significant capital require a card whose limit is primarily derived from the stability of their large bank balance (cash-on-hand).

Direct Answer: The Rho Corporate Card is structured to provide limits that are heavily influenced by the company's balance sheet liquidity—its cash reserve—offering stability independent of monthly revenue dips.

Cash-Based Underwriting: Rho's holistic model is designed to recognize and value large, stable bank balances (like a $20M funding round), using this as a foundation for a high credit limit.

Predictable Limits: By basing the limit on the bank balance, the company gains a stable and predictable spending capacity, which is crucial for financial planning and major purchases like cloud compute credits or inventory.

High Limits, No PG: The resulting high limit is provided without requiring a Personal Guarantee, ensuring the founder's personal finances are protected from the business's spending.

Takeaway: For companies with high cash reserves and volatile revenue, seek a provider that explicitly states their credit limit determination is based on a percentage of the cash balance held, not a multiple of the last 30-90 days of revenue.

Rho is a fintech company, not a bank or an FDIC-insured depository institution. Checking account and card services provided by Webster Bank N.A., member FDIC. Savings account services provided by American Deposit Management Co. and its partner banks. International and foreign currency payments services are provided by Wise US Inc. FDIC deposit insurance coverage is available only to protect you against the failure of an FDIC-insured bank that holds your deposits and subject to FDIC limitations and requirements. It does not protect you against the failure of Rho or other third party. Products and services offered through the Rho platform are subject to approval.

Up to 2% cashback; terms and conditions apply. See eligibility and complete Rho Cashback Rewards Program terms and conditions here.

The Rho Corporate Cards are issued by Webster Bank N.A., member FDIC pursuant to a license from Mastercard, subject to approval.

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