How to Apply for Corporate Credit

Use corporate credit cards for your business.

Corporate credit is essential if you want to start or expand your business. It's also a good idea for small-business owners to keep business and personal expenses separate. Still, applying for corporate credit, either as a credit card or a line of credit, can be a nerve-wracking experience. If the bank denies your application, you may struggle to find the money that you need for your business. Improve your chances of getting corporate credit by taking the following steps.

Instructions

1. Make sure your credit report is in order. A good credit score is necessary for corporate credit. If you own an established business, then your business probably has its own credit score that banks will use to make their decision. If your business is new, the bank may use your personal score to determine your credit limit and interest rate. In any case, order a copy of your personal or business credit report to look for any mistakes that could be causing a low score. Fix any errors before applying for credit.

2. Create a business plan. In some cases, a bank will want to see your company's business plan before it offers you credit. This helps the bank to determine how serious you are and whether it thinks your business will be profitable enough to make payments on your account.

3. Compare corporate credit card offers. There are a number of corporate credit cards to choose from. Some offer rewards, such as cash back or free airline miles. Others have low interest rates or no annual fee. Make sure to read all the fine print before you choose which card you want. For example, some credit cards start with a low interest rate, but it increases after a year.

4. Submit an application online, over the phone or in person. Many companies take credit applications online, which is convenient. If you're nervous about giving your personal information over the Internet, complete the application over the phone or in person at the bank.

5. Talk to a business banking specialist about a line of credit from the bank. When you need more money than a credit card offers, you can talk to the bank about getting a line of credit. This is similar to a credit card in that you have a credit limit and only pay interest on the money you use, but the credit limit on a line of credit is much higher. For example, a Wells Fargo business line of credit can go up to $100,000.

References

• Wells Fargo
• FinWeb