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Corporate Credit Card Application

One of the financing options for a business is to go for a corporate credit card application. This article will talk about this option and help give some tips before applying for one.

Lines of credits and credit cards are essential things in running a business. This is especially true when in the beginning, accounts may have fallen low on cash but payrolls and bills may still need to be paid. Making a loan or corporate credit card application may not be difficult but the bank will most likely ask the business owner to give a personal guarantee about the account. In other words, the business will be the one liable for any debts owed by the bank regardless of the status of the organization. Why is there a need for this to happen? Because it is necessary for the bank to get paid especially when any business may suffer bankruptcy. Can a business owner have a corporate credit card application approved without a personal guarantee?

Corporate Credit Card Application Tips

Well, first of all, the business must have a good credit scores from all the three credit bureaus. In order tom make that happen, the business should look for vendors stores, and suppliers that are willing to open a line of credit for a certain amount in the name of the business alone.

Well, that particular amount can be a few hundred dollars but that is just a start. As long as the debt is paid of in the right time and the payment record is reported in the credit bureaus, your credit history will start to build up which means that your credit score will have to increase, too. Having only one account will just be a little help. The business has to have a several counts including revolving lines of credit and both loans to make a slid credit history. Soon after, this will qualify the corporate cards without the presence of a personal guarantee.

Approving a Corporate Credit Card Application

Usually, lenders have to ask some important details before approving a corporate credit card application. The business has to be fully licensed and should have established a phone number and is registered in a 411 directory assistance. Te mentioned things above can be clarified by simply calling the bank for further information.

Some banks may offer credit cards initially with guarantee but after a period of time, the bank will have to pull out that guarantee if the account has been discovered to be in a good standing, payments are made on time, and never been over the limit. The period can be from six months to one year.

It will be possible to negotiate such terms with the bank. This can be done when the business holds a checking account.

Applying For Corporate Credit Card Summary

Well, what matters most is that your application has been granted. With such situation, you will be given the opportunity to prove your worth this time especially in rebuilding your credit history. The next time your business carries out a corporate credit card application, it will be easier, for sure.