15 Requirements for a Business Credit Card: Get Approved and Increase Profits

Last Updated on December 21, 2022 by Selina Parker

Many business owners don’t realize that they need a business credit card to manage their business finances. Business credit cards offer a handy method to make large purchases like office furnishings, equipment, or raw materials. From CEO to sole proprietor, every business owner should know the business credit card requirements to obtain a business credit line.

WHAT IS A BUSINESS CREDIT CARD?

A business credit card is for people who own a company. Anyone who runs a firm can obtain a business card, from big corporations to solo entrepreneurs to everyone. It is not necessary to work with others or have an office.

Business credit cards are for business expenses like business travel, business entertainment, and the purchase of business supplies.

REQUIREMENTS FOR A BUSINESS CREDIT CARD 

That we know what a business credit card is, we will discuss business credit card requirements. Understanding the business credit card requirements should help business owners get approved for a business line of credit. If you know and prepare these requirements beforehand, you will save time and stress.

First and foremost, many different organizations are eligible for business credit cards. Essentially, you have a chance of qualifying for a business credit card if you offer things or services for a profit and have a purpose for wanting one, such as acquiring materials.

PROOF OF BUSINESS OWNERSHIP/REGISTRATION

Paper and documentation that validate the business are under your name will be needed to get a business credit card.

Including business registration, business license, and business bank account details will help prove the existence of a business entity. You can submit the information via fax or email.

If you are a sole proprietor, you can use your full name as your legal business.

BUSINESS ADDRESS

Provide your office or business address. This is the exact address that will appear on your credit card statement. If you are working from home, you can use your home address as your business address.

BUSINESS PHONE NUMBER

Your business credit card will come with a toll-free business number that you and your employees can use to make purchases.

TYPE OF BUSINESS

You will have the option to choose if your business is a corporation, partnership, or sole proprietorship when applying for a business credit card.

BUSINESS CATEGORY

You will need to state the nature of your business – for example, is it a store, restaurant, or service company? The type of business you have will help the business credit card issuer determine your spending limits.

NUMBER OF EMPLOYEES

You will have to provide the number of people in your business so you can be approved for a business line of credit. This information is required by business lenders.

YEARS IN BUSINESS

The more years you have been in business, the better your chances are of being approved for a business line of credit. This is because it shows that you have experience managing and running a business.

FEDERAL TAX ID NUMBER

Your EIN is your tax ID for businesses. Your EIN has a different format but works the same as a Social Security number.

ANNUAL BUSINESS REVENUE

The net profit of your company will be disclosed here. For a sole proprietor, you will need to deduct running costs from total sales. If your business produces a modest profit, don’t let that stop you from applying for a small business credit card. As many enterprises do not turn a profit immediately, any net gain is considered beneficial.

EXPENSES (MONTHLY/ANNUAL)

You will need business expenses for the business credit card so you can spend money on what your business needs. You will have to provide an estimate of monthly or annual business expenses that were previously incurred by your business.

PERSONAL CREDIT SCORE

Having a score of 670 or higher on a personal credit card is ideal for business credit cards. You will also have to provide your personal credit history and a copy of your personal credit report when applying for a business line of credit. If you have used a business line of credit before, credit card companies likely already know about your personal and business debts.

PERSONAL GUARANTEE

You will need to provide a personal guarantee for business credit cards. You are responsible for any outstanding debt on the card if your business fails to pay.

SOCIAL SECURITY NUMBER

If you already submitted this as your tax ID number as a sole proprietor, you will need to provide it again here. As an owner, you have to provide social security number.

Before approving your application, the business credit card issuer will want to know about your business and personal financial history. Having all of this information ready will help speed up the process so you can get started.

TOTAL ANNUAL INCOME

As the person applying for a business credit card, your total gross income is required. It is the income you make from all sources, including business and personal activities.

AUTHORIZING OFFICER

In your account, you can choose an authorizing officer. Your authorized officer will be you if you apply as a sole proprietor. Members, partners, and managers are some of the other choices.

Once you have gathered these business credit card requirements, you can apply for business cards and increase profits. Most credit card issuers offer a secure online application. Some banks also allow you to use it for a business credit card application in person.

Finding out whether you get the approval can take up to two weeks. After that, if your application is approved, you can expect to receive your card within two weeks.

FINAL WORDS

A business credit card is different from your personal credit cards. Using your credit card to buy work products or services, on the other hand, can make it difficult to separate personal and business expenses.

Hence getting one is essential if you are running a business because it can help you simplify bookkeeping and improve your business credit score. Many business credit card options are available for any business, so doing your research is necessary.

Keep these business credit card requirements at hand when applying to increase your chances of being approved.