Applying for a business credit card

Much to your delight, your company is expanding. No longer a flight of fancy or pet project, it’s shaping up into a legitimate enterprise, but it still needs nurturing to grow. Applying for business credit card offers could help you build the financial scaffolding that lets your firm climb.

What goes into applying for a business credit card, and what should you avoid? Are you better off
applying for a business debit card instead of sticking with conventional credit? Follow these pointers to make the right moves.

What do you need to apply for a business credit card?

The requirements for business credit card applications vary by provider and product type. For instance, when you apply for a traditional credit card, you’ll need to submit to a rigorous vetting process to verify your creditworthiness and history.

Confused about the process? A good parallel lies in the way consumer lending applications work. Key differences include the fact that businesses face lower qualification hurdles and get fewer federal protections, although they tend to enjoy better rates and higher limits.

What is a business credit card?

Business credit cards are payment methods that typically feature

• Physical cards,
• Limited credit lines or accounts, and
• Revolving interest.

Taken together, these factors let companies spend more freely, yet they also impose unique constraints. One of the most obvious is the application process itself.

How do I apply for a business credit card?

To apply for an enterprise credit card, you’ll need to find a willing servicer. Professional credit solutions are widespread, so this isn’t the hard part.

Where most entrepreneurs and business leaders trip up is when it comes time to fill out applications, decide whether to supply personal guarantees and sift through the fine print that makes some offers riskier than they should be. Although none of these processes are individually impossible, they take time and focus that could better be used elsewhere.

Are business credit cards worth it?

If the hurdles are so high, then why do so many companies bother getting new business credit cards? According to the U.S. Small Business Administration, there are many good reasons to use credit solutions, including

• Maintaining separation between your personal and business assets,
• Improving recordkeeping ease and accuracy, and
• Building business credit for the future.

These are just some of the factors that might drive you to seek business credit solutions. For instance, cards could make it easier for your staff to pay for consumables without consulting you every time. Or, you might want to get business credit cards for new business projects that need independent accounting.

As in the realm of personal finance, most business credit card applications focus on credit histories and ratings. Other important qualifiers may include your company’s revenues, size or age. Many banks and financial institutions also maintain unique requirements, such as demanding that your firm be a for-profit enterprise. If your company lacks the track record to confirm its creditworthiness, then you’ll be judged by your personal history.

What are the benefits and disadvantages of applying for a small business credit card?

Anyone can apply for a business credit card as long as they own a business. This includes sole proprietors and entrepreneurs.

Credit cards appeal to leaders who want to make their enterprise finances more fluid. You may find it easier to complete critical purchases, keep up with bills and cover the essentials when you can use plastic instead of cash or checks.

Unfortunately, there are countless problems with credit, not the least of which is its contribution to a cool $1 trillion in U.S debt. Companies that depend on credit often discover that it

• Saps their revenue streams with late and returned payment, cash advance, balance transfer, foreign transaction, annual, ATM and other hefty fees,
• Exposes leaders to personal liabilities for use and misuse,
• Offers little in the way of purchase protection,
• Saddles them with high-priced financing, and
• Increases the risk of potentially ruinous internal fraud.

Should I get a corporate debit card instead of applying for business credit card products?

The business debit card is swiftly becoming the go-to option for those who don’t want to deal with the hassles of corporate credit. If qualifying for a credit-backed payment card is easier for a business than for a consumer, then getting a debit card is the simplest option of all: There are no application processes, background checks or other hoops.

Business debit cards can be a better alternative.

Business debit carries enhanced organizational freedom. For instance, you can

• Get as many cards as you need and distribute them to employees,
• Limit how much individual employees can spend and separate card funding from your main business account,
• Build credit by investing in things that directly benefit your firm, such as equipment and assets, and
• Completely avoid the perils of revolving interest, fees and surcharges.

What types of features and controls should I expect from a business debit card?

Debit offers more product options than credit alternatives. This makes them particularly beneficial for small enterprises. When you apply for a business debit card, seek out tools that

• Let you control expenditures by categorically approving purchases in advance,
• Make it easy to oversee spending from anywhere using a secure mobile dashboard,
• Support creating custom tools with an open API, and
• Give you the chance to try cards before you commit to investing in one.

How Will You Finance Your Enterprise Growth?

No matter whether you choose debit or take on the challenge of applying for business credit card offers, you need to find a payment tool that works. Bento for Business gives you the insight to make smarter money choices. With a full-fledged, secure app that keeps you in control, it’s never been easier to manage company finances intelligently. See what people have to say about us on the BBB, Capterra, and TrustPilot.