Business Credit Card Requirements for Corporations |
 |
A corporation can hold a business credit card
in its own name. As a result, the corporation must meet individual
requirements, separate from any business owners, in order to qualify.
The corporation will be evaluated across many different areas to
determine if it is credit worthy.
Credit Score
If the corporation has been in existence for some time, it
will have an independent credit score. This shows how the business has
performed in making payments on other loans and to other vendors. A
good score is essential.
Assets
If the business has assets, they will be owned by the
corporation as a legal entity. These assets can include office space,
technology, manufacturing equipment and real estate. These assets can
be used as collateral to help qualify for a business credit card.
Business Plan
Often, a young business will have insufficient assets and
credit to qualify. As a result, the business plan will become much more
important. A bank can evaluate a company's likelihood to succeed based
on the business plan presented. The bank will take a calculated risk on
a corporation that shows promise of profits in the future. In
particular, a corporation that has raised investor funds through a
business plan will be given larger limits.
|
Did you find this article helpful? |
| 
