The following small business credit card application tips could save you $100′s if not $1,000′s if you put them into practice. Here are some of the things that you need to know about small business credit card applications and why a small business credit card even makes sense in the first place.
Applying for a Small Business Credit Card
Why apply for a small business credit card? The reasons are numerous but here are arguably the top 3 reasons to submit your small business credit card application online ASAP:
- Rewards – Most small business credit cards have ways to earn rewards. Cash back, airline miles, and other perks are all things that can provide a boost to your businesses bottom line.
- Tracking – For a small business owner tax time can prove to be a major headache when it comes to separate personal expenses from business expenses. Using a credit card for your small business (and only for your small business) is a great way to let the credit card company do some of the accounting work for you and keep your business expenses separate from your personal expenses.
- Creditworthiness -It is important to build your small businesses creditworthiness as early as possible. Being able to show a strong record of on time payments to a business credit card can most definitely be a help when approaching a bank for a business loan.
The above 3 things are definitely advantages to applying for a credit card for your small business. Here are some concrete things that you should know as you begin the small business credit card application process.
Easy Small Business Credit Card Application Guidelines
When credit card issuers review the many small business credit card applications that get submitted to them they look for some very important things before deciding whether or not to approve the application. Some of these things they look for are exactly the same as what a bank looks for when deciding whether or not to set up a simple business checking account and accompanying small business debit card, However, there are also some things that the credit card company will have on the application that may be much different than the standard small business debit card application. Here are some things to pay close attention to.
- Business Name – Unless you are a sole proprietor then you will need to put a business name on the application. Now this may sound silly to some but you would be surprised how many fledgling entrepreneurs begin to seek financing for their new small business via a credit card without first taking the necessary steps to form the business properly and set up a legal name for the business.
- EIN – In addition the the legal business name requirement on all small business credit card applications there will also be a requirement for an Employer Identification Number (EIN) issued from the Internal Revenue Service. There is no cost to apply for an EIN and the EIN application process can be done 100% online with an instant EIN given if you use this IRS link. (Note: if your business is set up as a sole proprietorship then you will not need to put an EIN on the credit card application as you will just use your Social Security Number (SSN) in place of the EIN).
- Financials – Financial statements from at least the past year are required on most small business credit card applications. It is best to have at least your gross annual sales number and your net profit number close by so that you do not get part way into the application process online and then the application times out or you are interrupted by having to search all over for the financial information that you need.
The above quick 3 things may seem simple once you read them but if you have all of the above information close at hand then your online small business credit card application process should go smoothly. Be sure to read more about all of the various business credit cards and then visit our home page to use our credit card “Chaser” to find and compare the very best credit cards!
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