Apply for Business Credit Cards

By: EconomyWatch Content   Date: 28 October 2009

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Business credit card is a fine tuned version of regular credit cards, but which focuses on purchases related to corporate activities. Corporate purchases vary from travel to business supplies, and keeping pace with the demand, issuers offer different business credit cards for different purposes. Therefore, it gets crucial, while applying for a business credit card, that business owners identify their needs and purchasing habits and then hunt for the right business credit card.

Apply Business Credit Card: Which is the Best?

As all businesses function differently and have different pocket sizes, different kinds of business credit cards appeal to them. While businesses that function with a mobile workforce find a ‘Gas Card’ more useful, businesses into outsourcing prefer ‘Mile cards.’

However, there are a few standard features that a business credit card must have to give it the mileage it claims:

  • Attractive rebates: Several business credit cards offer multiple reward points for every dollar spent. Try to compare such cards and opt for the one that has the best interest rates besides a higher points/dollar ratio.
  • Redemptions of rebates for any kind of product: Business credit cards usually let you redeem your reward points for particular products, thus limiting your options. One should therefore apply for business credit cards that offer restriction-free redemption. 
  • No or low annual fees: Needless to say, ‘no annual fee’ is certainly some money saved.
  • Initial usage benefits: There are many cards that offer attractive initial usage benefits such as ‘no APR’ for the first six months or interest-free balance transfers.
  • Unlimited reward points: The reward points should be accumulable with no time restrictions and must never expire.
  • Dense network of alliances: A business credit card should also let you earn points through meal purchases, accommodations, memberships or other travel related activities.

The key to finding the best business credit card is to compare extensively before applying for one. Remember, there are many sites that let you compare the terms and conditions of business credit card; therefore, use them for your own good. Also remember that though a business credit card can ease a lot of financial demands, it can also dip your credit score if payments are missed or delayed. Therefore, be as careful at using it as you will be while applying for a business credit card.

Business Credit Card Application : What is Needed?

If you own a business then at some point in time you are likely going to need to apply for a credit card for your business. It is wise to keep your personal credit needs and your business credit needs separate. This is where the importance of a business credit card application becomes a factor.

An application for a business credit card can be relatively simple to complete or it may be more complex. Much of the information that you need to provide will relate to your business, but some pertinent personal information may be required as well.

Not all business credit card applications are alike in every way. The application for a brand new business will not be the exact same as that for an established business that has had the time to develop a good history of credit.

When applying for a credit card, the company will require your business tax identification number to process your application. Think of this number as a social security number for your business. You need to provide this number to the credit card company because it is their way of verifying that you are a good bet to offer credit to. 

Other information that is relevant to your business credit card application includes your name, the name of your business, and the contact information for your business including the address and the phone number. Perhaps your business is known by one name, but officially was organized under another. It is the official name that the credit card company will require for the application process.

As you prepare to begin the credit card process it is necessary for you to be ready to talk about your business. This is an important point because many lenders want to have a description of your business to better ascertain if you are a good fit for their credit card offer. A long drawn out description is not necessary but it is required that you identify the category your business falls into. Some examples include manufacturing, office, retail and so on.

Another question often posed on a business credit card application is how your business is organized. In other words is your business incorporated and if yes then how is it incorporated? Or on the other hand, is it a partnership or a sole proprietorship? These are important nuggets of information that you must willingly disclose.

The application may also ask questions regarding how profitable your business is. Some companies may wish to see two or more year’s worth of financial statements that clearly show how much money your business is netting and grossing.

 

 


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