Business Credit Card: Eligibility, Documents and How To Apply

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While personal card zero percent periods could last anywhere from a couple of months to over a year, business card promotional periods usually last about a year. It’s important to only use your business credit card for business expenses. This distinction is important legally, ethically and financially. Sole proprietors, freelancers and partnerships can all qualify for a business credit card. The business doesn’t have to be incorporated or registered in order to benefit from business credit. Having an Employer Identification Number is also not required, although it may be helpful when applying for a higher-end business card. Amex business cards allow you to review a year-end summary and send transactions to Quickbooks on a daily basis, after enrollment.

expenses you should never charge on a business credit card

There are both pros and cons to using credit card financing, but the best advice is to replace it with more traditional business financing as soon as you can. While you have credit card debt, be very careful and follow the terms and conditions of the card.

Plan and set up the business operations, including sourcing of products or materials, manufacturing processes if applicable, optimal pricing for customers, and necessary leased space. AllBusiness EditorsAllBusiness.com is one of the largest online resources for small businesses, providing essential tools and resources to start, grow, and manage your business. AllBusiness.com brings you real-world expertise and practical advice from some of the best minds in small business. Accuracy, independence and authority remain as key principles of our editorial guidelines. For further information about automated content on CreditCards.com, email Lance Davis, VP of Content, at Since 2004, CreditCards.com has worked to break down the barriers that stand between you and your perfect credit card. Our team is made up of diverse individuals with a wide range of expertise and complementary backgrounds.

How a Business Credit Card Works

— with a $695 annual fee — which currently sits at 120,000 bonus points after you spend $15,000 on eligible purchases within your first three months of card membership. It’s no wonder the Business Platinum Card is TPG readers‘ favorite business card.

• Before we talk about the different business credit cards, it’s important to understand what a business credit card is.
• Some companies, like Chase, offer benefits like Chase Ultimate Rewards.Capital One’s line of Spark business credit cards include options for cash-back rewards and airline miles.
• Some cards charge annual fees, for example, that might offset some of the benefits of a good rewards program or low APR.
• New businesses have a completely blank slate when it comes to credit.
• Credit card programs offer many rewards to businesses for every use.
• Business startup owners may have personal credit, but the business is new so it has no business credit.

While business debit cards are designated for company usage, they are not widely used by small and medium-sized businesses. They find business credit cards more reliable and versatile for online transactions. Some credit card companies may even offer cash as a reward through cash-back programs.

Airline Reward Programs

This can even out your cash flow, making your business less subject to short-term ups and downs. During months when you don’t have cash on hand to pay invoices or unexpected expenses crop up, business cards can be a helpful way to cover those costs. However, it’s important to not treat a credit card like free money or a way to spend more money than you have or expect to come in. Keeping business and personal cards separate also allows you to take advantage of quarterly and annual statements provided by your credit card company. These statements break down your expenses into categories and can be very helpful when you’re creating budgets and tracking expenses. Most business card issuers allow cardholders to order credit cards for employees.

If you anticipate that your business will be a high-growth and high earnings startup, then you might want to explore obtaining VC money. Venture capitalists provide you with funding if they are interested in your project. They also require some percentage of the ownership of the firm.

What is a Business Credit Card – Eligibility and How to Apply Online?

Examine your credit card rewards programme on an annual basis, both to ensure you’re taking advantage of the benefits your cards provide and to consider whether it’s time for a change. Business business credit card owners with multiple cards use them to maximize their reward-earning potential. For example, using a Chase Trifecta is fairly common among people who wish to make the most of their spending.