In preparation for our upcoming business seminar. We wanted to offer some insightful information about business credit cards. In a panel recently, I was asked how does a company determine eligibility for a business credit card? Here are my expert tips from actual experience. (P.S. if you have more questions, please contact me at the form below!)
How can a company determine if it is eligible for a business credit card?
We can speak on this topic from real-world experience. There are plenty of blogs offering promising information for the sake of clickbait but fail to tell the reality of this endeavor.
When a company secures its first business credit card, it primarily depends on the key applicant’s credit score and history. If the key applicant has great credit, the company will get most business lines of credit. This is how a company determines eligibility. Therefore, the key to business credit cards honestly is great personal credit. If your personal credit needs improvement, you should start here first!
Why is tracking employee purchases via corporate cards important?
Yes! This is absolutely important. Many corporate cards offer granular controls, too. As the key official, your accounting department will love you for choosing a card with these controls.
How does a business credit card protect individuals from personal liability?
Most corporate cards have this protection by default. However, pay attention to the terms of the protection as many cards have a limit on either how much of a protection amount is offered per purchase or how many claims per year.
What are some ways a company can improve its business credit score?
This is an entire course! And we’ll be covering this in our business seminar. In short, a business must obtain a Dun & Bradstreet number. Then work through several tiers of credit vendors. Starting with Net 30 accounts, such as this marketing agency that services on credit. This means you can get your website built, grow social media channels, or even start your SEO campaigns and pay the tab later. Next, move to vendors such as gas cards. Then, store cards. However, the most important tip is to pay your business lines of credit on time!
How have fintechs like Brex, Ramp, or Divvy impacted the corporate card industry?
These companies are only significant to companies either with funding or money in the bank already. Companies with low reserves in the bank won’t even qualify for these. For example, with Brex, a company needs at least $50K in the bank to qualify. These cards are meant for companies with money who need a short-term stretch for cash.
What features should a company look for in a corporate card?
This depends on the business needs. By default, I would suggest a card with points perks or higher than 3% cashback offers.
What business credit card should I apply for?
There are many cards available. To help you find the best fit for your company, we need to offer a complimentary consultation. To get started, please fill out the form below to set up a consultation.
