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How to apply for a business credit card

by OnDeck Australia,   Oct 22, 2021

How to apply for a business credit card

Are you interested in getting a business credit card? Before you do anything, read our post on how business credit cards work to understand how they can assist you with important business purchases and the other benefits they can provide.

With an understanding of how business credit cards work, you’re ready to start the process of actually getting one. Keep reading for our tips on applying for a business credit card that will provide the most benefit in managing your business expenses and improving your business credit score.

Choose the type of business credit card that is best for your business

To find out which type of business credit card is right for you, consider what kinds of purchases you anticipate putting on it. If your expenses tend to fall within a specific category, like travel, for example, then a travel rewards credit card would be a good option. 

There’s a wide range of different business credit cards to choose from with various features and benefits. Research and compare business credit cards carefully to determine what will be most beneficial based on how you run your business.

You may be tempted to get a business credit card from the lender you do your personal banking with, but don’t be limited by your existing relationships. Explore all your available options to find the best credit card for your business needs.

Work out whether you qualify

Not every business qualifies for a credit card, so you may need to dig into what it takes to be approved. For instance, not all businesses will have sufficient income or financial history. Additionally, your business could lack the necessary documentation to prove it is legally registered and active per government regulations.

It’s important to know if you meet the basic eligibility requirements for a business credit card before you apply. Applying for too many different cards and getting denied will harm your business credit score.

Collect the required documentation

Each card issuer is different, and different lending criteria apply to their business credit cards. You may need to collect certain documents to be considered.

These could include the following:

  • Your current business expenses and bank statements
  • Legal documentation to prove your business is registered
  • Your business’s financial history
  • How long your business has been in operation
  • Documentation to prove the ownership of your business, such as copies of personal identification or certificates of incorporation. If you are applying for a joint business credit card with one or more other people, you will need their identifying documentation.

Read through any application requirements carefully so you can collect everything you need before applying. 

Be ready to answer application questions

Application questions are used to determine your suitability for a business credit card, so be ready to provide thoughtful answers that will demonstrate how well-suited you are for it. Typically, they involve explaining how your business works and why the potential card benefits would be helpful for your business.

Familiarize yourself with common application questions so you can answer them quickly and efficiently when it comes time to apply. If you need assistance, then reach out to your network of contacts for help before applying.

Read through the terms and conditions carefully

When applying for a business credit card, it is important to go through all the terms and conditions carefully. Business credit cards sometimes come with high interest rates, so only choose the one that offers you the best deal for your business.

It would help if you also looked through any potential fees before applying so you know what extra charges you could be responsible for paying down the line. How long it will take to clear the balance and when interest will be charged is also something you may want to explore.

Credit cards can offer great benefits for your business, but only if you apply for the right one. 

Complete the application form and submit it

Finally, the application form is where you will submit your business credit card details so you can actually get your hands on one. You may be able to do this online via a form on a company website, or you may have to print it out and mail it in.

Whichever way you choose to complete the application, make sure that all your answers are honest and accurate so that your legitimacy isn’t called into question. 

How long it will take the issuer to make a decision is another thing you might want to look into if you’re in a hurry to get started. Depending on the requirements you need to meet, it could take only a few days or several weeks to process your application.

Apart from a business credit card, you can also support your business expenses with a short term business loan. OnDeck’s loans allow you to borrow between $10,000 and $250,000 to support your business, with fast approvals and low loan origination fees of only 3%.

Frequently Asked Questions

What documents do you need for a business credit card?

Business credit card applications require you to provide documentation that proves who you are and how well your business is doing. These documents can include invoices, bank statements, tax returns, business licenses or incorporation certificates.

What credit score is needed for a business credit card?

Business credit card applications often require a certain credit score if you are to be approved. How high your score needs to be will usually depend on the lender, but typically it is higher than that required for regular cards.

Is it worth having a business credit card?

Having a business credit card can help you manage your expenses more easily and provide spending power for time-sensitive business purchases. Having a credit card can also improve your business’s cash flow by enabling you to pay suppliers quickly without having to liquidate stock or wait to receive invoices.

How are business credit cards different to personal credit cards?

Business credit cards usually offer greater spending power, faster access to funds and more favourable interest rates than what is typical for a personal credit card. They may also come with specific perks that help your business, like expense tracking software or corporate concierge services. How you use your credit card will determine the type of rate you receive, so it is important to pay off your balance each month if you want to benefit from a low rate.

How do you check your credit score for a business credit card application?

Check your business credit score with OnDeck’s free Know Your Score tool. Using the tool leaves no footprint, so it won’t impact your credit score by recording a credit inquiry.

How do I know if a card issuer is trustworthy?

Check their Australian Credit Licence to make sure they are regulated as a financial institution.

 

Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong to or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. Information current as at October  2021. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.

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