When looking to get a credit card for your small business, there are two key components to address: (1) what you need to do in order to get a card and (2) what credit package needs to be offered in order to meet the needs of your small business. Knowing what will be expected of you and what you can expect from a potential provider is crucial for making the right decisions in the application process.
What’s Required of You Before and During the Application Process
Getting your proverbial start-up ducks in a row is a prerequisite to applying for a business credit card. Many credit card companies require the owner or an authorized officer of the business to apply for the card and will require you to provide information concerning yourself, your company, and any other employee you might be requesting a card for. Hence, the time to apply for a business line of credit does not come until you have actually established your company. Cards are awarded to full-fledged businesses, not start-up ideas that have yet to be incorporated and legalized.
You will typically need to provide your social security number along with the legal name and street address of your business. If the business is not a sole proprietorship, you should have your business tax ID on hand. Additionally, you may be asked for your company’s gross annual sales and net profit for the last fiscal year. Other financial information may also be required of you before your application will be processed. It is like ticket management system also provides various reports.
Many companies will allow you to apply for a business credit card online, simplifying the transmission of data and streamlining the process. However, it still may take up to 14 business days to hear back from a credit company on the approval or rejection of your application. If your small business and cardholders are approved, each will receive his or her own card–generally with the individual’s name printed above the business name itself.
What Should You Require From a Credit Card Company for a Business Account?
Some desirable credit options apply to personal and business accounts alike.
When shopping around for a credit card, you want to look for a low annual percentage rate (APR) and no or low annual fees. You may also be interested in finding a card with free online banking and bill pay as well as one that offers no over-limit fees and extended grace periods on purchases.
Other credit card perks may or may not be particularly appealing, depending on your preferences, like low cash advance fees and no limit to the number of cards that can be awarded to the same business. If you plan on a great deal of business travel, your preferred rewards system may differ from that of another small business owner who does not travel.
Most importantly, you want to make sure you apply for a credit card that has a transparent policy that accompanies it. Read the disclosures and fine, fine print, and pay attention to phrases like “introductory rates.”