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What is Required on a Business Credit Card Application?

Article Details
  • Written By: Tricia Ellis-Christensen
  • Edited By: O. Wallace
  • Last Modified Date: 13 June 2017
  • Copyright Protected:
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    Conjecture Corporation
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A business credit card application may be small or large and could have numerous requirements. Some of the information people may need to gather prior to applying relates solely to the business. It may also be necessary to provide personal information on a business credit card application.

A thriving business with a good credit history may have a different business credit card application than a new business. Things a credit card company is likely to request include the business tax identification number. This functions like a social security number for the business and is a way of verifying the creditworthiness of the applicant. Other things that are requested can be business contact information like address, phone number, and the name of the representative that applies for the card. Credit card lenders usually ask for the legal name of the company too, which means the official name under which the company was organized and which may be different than a more common name by which the business is known.

People applying should be prepared to describe their business, since lenders often ask for description. Lengthy descriptions aren’t usually needed, but a business could be identified as retail, office, manufacturing and et cetera. Another common question on a business credit card application is the way the business is organized. Lenders may want to know if the business is incorporated and how, or if it is a sole proprietorship or partnership.

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Just as personal credit applications often request salary, a business credit card application usually has similar requests for profits the business makes. They may ask for two years or more of financial statements showing the amount of money the business grosses and nets. Sometimes, applications also include a request for minutes from a board meeting that authorizes applying for a credit card. This is a more typical request with small non-profit or for-profit businesses.

It is often the case that a business credit card application has an area that must provide information about the owners of the company. This information usually includes requests for personal addresses, phone numbers and social security numbers. Some lenders do make business owners assume legal responsibility for any debts owed if a company cannot pay them. Owners could be defined as anyone who owns a 10% share or more in the company, and several people’s names might be used to guarantee the card.

Strong businesses that have verifiable profits and a history of paying off their debts can often avoid company owners becoming personal guarantors for loans from credit card companies. New businesses may not have this luxury. Many financial advisors suggest that as a company becomes solvent or profitable and establishes a strong credit history, owners switch to a card that doesn’t require personal guarantees of this nature.

A few other things are usually asked on a business credit card application. The application may ask how many cards people want issues, and what names should be on those cards. Lastly, a signature is required. This verifies truth of all information provided, and acts as an agreement to lending terms, as described in the application.

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