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How to Get a Business Credit Card for Small Businesses
by Emily Rhodes Bad credit loans from direct lenderThe idea of
having a business credit card is appealing for the owners of small businesses.
The added benefits of bonuses, extra credit limit, and the introductory offers
are what make it a popular choice.
For freelancers,
it incorporates the need for guaranteed same day loans for unemployed in case they
need money instantly.
The process of
getting a business credit card might seem intimidating for some. On the
contrary, the process is similar to the personal credit card. You can get it
even for a side hustle or a business that hasn’t made money yet. Here’s how
you can apply for a business credit card if you own a small business.
Business or Personal Credit Card
Both the credit
cards, business and personal, work on the same principle. The lender will pay
for you and in return charge interest for the money. You can earn rewards in
both cards. However, business cards tend to offer bonus rewards on expenses
such as travel, restaurant bills, and office supplies.
The credit limit
is more when compared to personal credit cards. There might not be a 0% APR for
the first few months or a year in the case of the business cards. However, these
cards have a more comprehensive credit reporting.
In simpler words,
the business credit cards are offered with offers and policies tailored to
business expenses.
What are Small Businesses Eligible?
When we speak of
small-businesses, you need to have a for-profit enterprise. Those businesses
who haven’t earned any profit yet can still apply. Apart from a for-profit
enterprise, any side hustle is also considered eligible for these credit cards.
It includes selling something on an e-commerce platform or lending your
property to some big private firm.
The freelancers
and independent contractors are also a small-business for many lenders. However,
the eligibility depends on numerous other factors, including the credit ratings
of the business owner.
Information Asked by Lenders
The process of
business card application is not much different from a personal credit card.
You need to check eligibility and apply for it. The card issuer will ask
for certain information to set a credit limit and assess your credibility. It
can be business-related or personal. The details required are mentioned below.
Name of the
Business: You should put the legal name of your business here. Those who work as
consultants, freelancers, or don’t have a name for the business can use their
name.
Tax ID Number: Social security
numbers for businesses with no separate tax ID is valid for this field.
Entrepreneurs generally don’t have a tax ID for their new businesses.
The date on which the business was Started: The field doesn’t require explanation.
Type of Industry:
Here,
you need to mention the kind of industry your product and services belong to.
It can be construction, e-commerce, transportation, and many more.
Entity Type or
Legal Structure: The way your business is organized is described in
this field. Small businesses commonly lack the formal organization
structure, like LLC, corporation, or partnership. You can call them sole
proprietorships since they are owned and managed by a single individual. This
individual is the business for the card-issuing company. The freelancers,
online traders, independent contractors also come under this category. Just
like any other business structure, the sole proprietorship is eligible for
business credit cards.
Address and
Contact Details: Put the address and phone number of your business
instead of your personal. However, if you don’t have any, you can still use
your personal information.
Details of Person
Owning more than 25% Business Stakes: The lenders can ask you details about other people who
have own more than 25% of the business. You must mention their name, social security
number, date of birth, and address if it is asked.
Annual Revenue of
the Business: The money your business makes in a year is its annual revenue. Do not
confuse it with the profit earned by it. You can put £0 if your business hasn’t
made any money yet.
After filling the
application form, the card issuer will assess your financial situation and
offer you a credit limit. After agreeing to it, you will receive your business
credit card in your mail within the stipulated time.
Effects on Personal Credits?
The card issuers
generally assess the personal credit of the business owner. Therefore,
maintaining a good credit history is essential to get a better offer for
business cards. The actions on your business card will be reflected in your
credit history.
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About Emily Rhodes 
Bad credit loans from direct lender
37 connections, 0 recommendations, 109 honor points.Joined APSense since, July 7th, 2015, From 11 East Laith Gate, DONCASTER, DN1 1JG, United Kingdom.
Created on Oct 28th 2020 06:35. Viewed 287 times.
