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.
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.
Business credit cards are payment methods that typically feature
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.
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.
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
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.
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
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 carries enhanced organizational freedom. For instance, you can
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
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.
Feeling intrigued about the debit solutions behind today’s greatest business success stories? Want the benefits of fluid payments without applying for a business credit card? Schedule a demo, or join the free trial for 60 days. Call a Bento for Business specialist at 866.220.8455 now.
Applying does NOT affect your credit score!*This is not a credit card.
Banking services provided by The Bancorp Bank, Member FDIC. This Card is issued by The Bancorp Bank pursuant to a license from Visa U.S.A Inc. and may be used everywhere Visa® debit cards are accepted.