Business Credit: Strategies to Getting Approved
Getting a business credit card is almost always a great idea for your small business, since it provides some significant advantages that will be helpful for future growth. For instance, it can provide a lot more purchasing power for the short-term, it makes accounting much easier for keeping personal and business expenses distinct from each other, and it can serve as a springboard to eligibility for future loans. Here are some suggestions that may help get you approved for a business credit card.
When You’re Applying
The application process for a business credit card is fairly straightforward, and for the most part, it’s the same as applying for a personal credit card. Along with all the static information that you will have to provide such as company name and business structure, you’ll have to show what your net profits are annually and what your gross annual sales are. If these figures are not very impressive, you’ll need to have a very sound reason why that is so, and why you know it’s going to turn around.
Just like with a personal credit card, your approval for a business card will largely depend on your business credit history and your business income. Since the majority of card-issuing companies will first consult the business credit bureaus, your credit history will need to be in decent shape in order to be approved. If you have a new business which lacks any significant history, your personal credit history will be consulted instead, so this needs to be in order as well.
Keep it Honest
One thing to remember when going through the application and approval process for a small business credit card, is that it is really very important that you resist the temptation to pad financial figures in any way. Many card-issuing companies will run their own background check to confirm numbers you provide them, and in some cases, they will even conduct impromptu audits to ensure that they are being given accurate figures.