As a business owner, you are spoiled for choice when it comes to business credit cards. Each business credit card has its own competitive edge offering different annual fees and varied rewards. Find one that best suits your business spending habits.
Once you’ve settled for the business credit card that fits your company needs, it simply boils down to completing an application form and awaiting approval. Most credit card companies offer online applications and provide approval decisions within minutes.
To ensure a smooth application process, take extra care to ensure all information you provide is accurate and error-free. Here is the information you’ll be required to provide for a business credit card application.
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Business name
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Business contact information
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Industry type
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Business type
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Tax identification number
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Years in business and number of employees
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Annual business revenue
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Personal information
The name of your registered business. If you run a sole-proprietorship, enter your legal name.
This is the phone number and mailing address of your business office. If you work from home, you can enter your personal address and phone number.
Select the industry your business falls under or most closely applies to your business.
The company structure to indicate whether it is a corporation, a partnership, limited liability, sole proprietorship, etc. If you are registered as a partnership or corporation, you may be asked to list basic information about the business owners.
This is your employer identification number (EIN) which is used to verify your business. If you are a sole proprietorship without an EIN, you can provide your social security number (SSN) instead.
How long the business has been in operation and the number of employees that are part of the company.
The amount of money your business makes annually. It is prudent to ensure this number is not exaggerated as you may be requested to provide supporting documentation to verify its accuracy.
This may include your home address, contact information, total annual income and monthly expenses, etc.
Benefits of having a business credit card
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Keep personal and business expenses separate
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Build business credit
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Credit card reward
Ideally, there should be a distinct line of separation between personal and business finances. When tax season comes knocking, this distinction is particularly helpful since the tedious manual work of identifying business expenses from personal transactions is done away with. More importantly, it protects your personal finances from scrutiny should any legal trouble arise from doing business.
As a business owner, your business credit is directly linked to your EIN. Creating a history of spending for your business profile is important to establish the creditworthiness of your business. Paying for expenses with your business credit card is an easy way to establish a business credit score.
If you are on the lookout for business financing to grow your business in the future, your business credit history is a vital point of consideration in granting financing approval. It indicates your trustworthiness as a paymaster and manager of funds. The stronger your credit score, the better your chances at securing larger loans at better rates, since lenders will feel more confident in you.
One exciting incentive of using business credit cards is the reward schemes it offers. Business credit cards give you the chance to earn rewards for the frequent purchases your business makes. These rewards can be travel miles, cashback, discounts on office supplies, and other rewards in popular business categories.
If you are a small business owner, using a business credit card can be the key to unlocking better business prospects and opportunities. As long as you are disciplined in your spending habits and pay off your credit card bill in full every month, a business credit card can be an important business resource.
