Business Credit Cards
Opening a business credit card is a big step toward business credit building. However, some people are nervous about applying for a business credit card. While there are specific qualifying criteria, it is not as difficult as you may think, primarily if you work hand in hand with your Personal Finance Officer at Business Credit New York.Business Credit New York knows how to get business credit cards for new businesses. We also help find you business credit cards for startups. Don’t despair if you’re a new business. There are business credit cards with no credit history. More than that, we know how to get business credit cards for bad credit ratings, and we’re highly knowledgeable about business credit cards.Our clients trust us, and we’ll ensure that you are adequately informed before making any decisions.
At Business Credit New York, we know all the ins and outs of improving your credit standing. If you are a startup company with no previous credit, we can help you open the initial accounts you will need to build your credit score.We know which Net 30 and Net 60 vendors are prepared to give easy approval for business credit. We can even help you obtain your EIN and D-U-N-S number if you come to us from the beginning, changing your SIC and NAICS codes if you have chosen the incorrect ones, or if you have an automatic turn-down of a high-risk industry code.We aim to help you succeed in business. Filling in forms can be a tedious minefield, on top of knowing which steps to take when applying for finance. At Business Credit New York, we do the finicky grunt work and leave you to enjoy the finance!
To put it simply, we help you bag the money. Yes, that’s right! We assist you in getting capital, whether you have a credit history or not, and even if you have a bad credit history!We help you get loans and credit lines by building your business credibility. When the traditional banking institutions’ qualifying criteria are too stringent, we provide alternative lenders.Business Credit New York is equipped to advise you which vendor accounts build good business credit and point you toward credit grantors who don’t mind giving new businesses a chance.
LET’S LOOK AT SOME OF THE PROS OF A BUSINESS CREDIT CARD AND HOW IT CAN HELP YOUR COMPANY
Interest-free periods
Certain credit card providers don’t charge cardholders interest fees for several months after opening the account.
Building business credit.
At Business Credit New York, we will advise you to take a card from a provider that reports your account activity to business credit bureaus, which will build your company’s credit.
Set employee spend limits
You can set limits on your employees’ cards to avoid staff overspending.
Rewards on expenses
Many offers include cash back rewards or fantastic rewards points. In this way, you essentially get paid to use your card for eligible purposes.
Flexible spending options
A business credit card allows you to take advantage of specials and promotions that you may not have been able to afford if having to pay cash.
Protection
Sometimes it is safer to spend money when traveling using a credit card than a debit card because it gives cardholders more protection.
Now, there are other reasons to get a business credit card.
Every business owner has tough, lean times. There will be months when business is slow, like when we were suffering the full blow of the Covid-19 pandemic. I imagine that many small companies kept afloat solely because of their ability to fall back onto credit.Man y wonder why get a business credit card when there are so many business funding options, from small business loans to lines of credit. The answer is that as a new business or a startup company, you may not qualify for other funding possibilities because you don’t have a credit history. However, there are still certain business credit cards that you may be eligible for. Another great reason to get a business credit card is to build a good payment transaction record. It looks great on your credit report when you pay your account on time and in full. This way, you begin building a good credit record by purchasing on your card and making sure the repayments are made in good time. If you can make payment earlier than the due date, so much the better.
Let’s look at some interesting facts about business credit cards.
You don’t need to be registered
and you don’t need to be incorporated or registered as a business to get a business credit card. You can be a freelancer or even a dog-walker – as long as your endeavors generate an income, you have the right to apply for a business credit card.
You don’t need to have an EIN
and you can apply for a business credit card using your SSN should you so choose. The only foreseeable problem here is that you can then be held liable for expenses incurred by the business.
You don’t need to supply your SSN
Some business credit card providers will issue you a credit card using your EIN only. Some business owners prefer this, especially if they have bad personal credit; or don’t want to be held responsible in an individual capacity for company debts.
Promotional financing
Some small business credit cards offer a promotional period for interest-free funding as a welcome offer for a whole year.
Business credit gas cards
There are certain business credit cards that one is only allowed to purchase gas with. This allows the business owner to keep accurate vehicle logs and determine gas consumption and mileage.
Business credit cards for travel
Some business credit cards are better suited for travel and travel expenses. These would be cards that give rewards on flying miles, hotel accommodation, etc.
Different rules to personal
Business credit cards operate with varying rules compared to individual credit cards. Small business credit cards are exempt from specific requirements, like the 21-day grace period before a payment can be considered late. Credit card providers must also give customers a 45-day notice period before increasing interest fees on future charges. It’s a good thing that many credit card providers have voluntarily optioned to apply these rules to their small business cards. At Business Credit New York, we can advise you which credit card providers make allowances for their clients.
Combine personal and business rewards
When you apply for a business credit card co-branded with a particular hotel or an airline company, you’ll use the same loyalty program number that you earn rewards with your credit card. All of your points and miles will be calculated together, and you can use the pooled points from both cards on one transaction. Your Personal Finance Officer will know which business credit cards allow you to combine points and rewards.
Different types of credit cards for different types of credit
If you are looking to build your credit profile, there are certain business credit cards for new businesses. But those are not the only business credit cards you get. There are also business credit cards for startups. And some credit card providers even issue business credit cards with no credit history, and even business credit cards with no personal guarantee. Amazingly, there are even business credit cards for bad credit. Alternatively, there are also business credit cards for those whose credit is above reproach.
The first place that most people will try to apply for a business credit card is at the bank. To get approval for a U.S. Bank Business Platinum credit card, you need to have a credit score of at least 750. This is an extremely high credit score and is not that easy to come by. Another difficulty posed by U.S. banks is that they often insist on checking your personal credit history before issuing a business credit cardHowever, there is one U.S. Bank credit card that even accepts clients with a bad credit score and has the bonus of a $0 annual fee. This is the U.S. Bank Secured, Visa Card. However, the difficulty with banks is why small business owners, especially startups and new businesses, sometimes need to approach alternative credit card providers. This is where Business Credit New York can make life easier for you. You won’t have to search and hunt until you find a credit card provider that will assist you. We know exactly what criteria are required for which credit card agency, and we will be able to help you gain approval.
The next step is how to get a business credit card. Once you’ve made up your mind which card suits your business best, these are the steps we will follow.
Check your credit
We will pull your business credit report and look at your scores to see how to improve them if they are low. We will also ascertain which cards you currently qualify for.
Calculate your annual business revenue
We will have to state your business income on your business credit card application, and you will possibly be asked for your income.
Eligibility requirements
It’s important to understand that multiple rejected business credit card applications spread out over an extended time can damage your personal credit scores. That’s why you need the help of a Personal Finance Officer at Business Credit New York. Your Finance Officer will ensure that you do not apply for cards you are at high risk of being rejected.
Check out reward options
You will have to decide what kind of rewards suit your business needs best. Will you benefit most from travel rewards or cash back rewards? Also, do you need to consider a balance transfer card that you can transfer current debt onto?
All about the rates
The cost of borrowing money is known as interest, and these rates are called your APR (annual percentage rate) with credit cards. The good thing about most business credit cards is that you can avoid interest charges if you pay your account in full by or before each month’s due date. It’s important to know that APRs are affected by your credit rating and income bracket and that they vary from card to card. Credit card interest rates can be quite high if payments are made late, but remember, you can minimize or avoid interest altogether if you pay in full and on time every month.
Potential Issues with Business Credit Card Approval
If you have bad personal credit there are other options for you. At Business Credit New York, we sometimes assist clients in getting secured business credit cards. With these cards, a deposit is necessary, and the credit limits are often lower.Ho wever, they are easier to get approval for than rewards cards. Once you have one of these, it will go a long way towards increasing your credit score. Some retailers even have their own business credit cards for customers, and these are easier to qualify for in general than other credit cards. Credit card providers often offset their risk by making you pay higher interest rates than someone with a better credit rating.
All about using your business credit card
Using your business credit card is a sure way of building your business credit if you manage it properly. Good planning will ensure that you avoid problems in the future, and good planning will also pave your way to a small business loan in times to come. To be sure that your business credit card is not misused, you will need to establish rules around its use. You will need to decide what expenses will be covered by the said card and your monthly limit. Plus, you will have to be confident that you can afford the charges lest they backfire and give you a bad credit score. You will also need to decide which of your staff members will be allowed to use this card and how many employee cards you will issue.
Besides simplifying your bookkeeping and cutting down on accountant expenses, a business credit card is terrific for when great opportunities arise that need quick capital, and you don’t have the cash to cover the cost. Your business credit card can be a lifesaver at times like that!
THINGS TO BE CAUTIOUS OF
It’s essential to be aware of your spending limits. There is nothing quite as embarrassing as your credit card being declined when trying to make a purchase. You also don’t want to lose out on essential company purchases because of lousy budgeting and planning.
It saves time and effort if you pay your business credit card debt from your business bank account to keep your bookkeeping basic and straightforward. Keep an eye on billing cycles to be sure of always making timely payments. This means that you will not be charged late payment fees. It is possible to avoid paying interest or at least keep your APR down.
Summary
Here is a summary of the advantages and disadvantages of business credit cards.
The advantages of a business credit card are as follows:
- Boost your business credit score
- Separate personal and business expenses
- Reap business-specific rewards
- Better terms and increased finance options
- Increased and improved business cash flow
The disadvantages of a business credit card are listed below:
- Less protection than consumer credit cards
- Higher interest rates than loans or credit lines
- Security issues
- Fluctuating interest rates
- Personal legal liability in some cases
It will take at least three years to build good business credit. However, paying your business credit card installments on time or before the due date, every month will push your credit score up more quickly than that. It can make a difference in as little as a year.
GET IN TOUCH
At Business Credit New York, your Personal Finance Officer will discuss all of your options, and together you can decide on the best course of action and the best business credit card to apply for. Contact Business Credit New York for the best advice about business credit cards.