Business credit cards or company credit cards are specific types of credit cards designed for businesses irrespective of their size and the number of customers it possesses. Similar to the credit cards used by individuals, business credit cards are also used to build a proper credit profile to ensure credit for the future.
Whether you have a small business or a big one, credit cards are required for every company. A company can be credited the required amount of money whenever necessary in order to accomplish the purchasing of business requirements. We have discussed the eligibility and perks of getting your business a business credit card.
Why a Business Credit card is required for a Business Person
Business credit cards are required to fulfill the instant needs of the company to acquire new assets. Credit cards save information about the transaction done by the business holder. Here are some points to know why your business needs a credit card.
- A business credit card helps the cardholder differentiate his personal expenses from business expenses. It creates an availability of a whole new card for your business-related expenditures so that you don’t need to use the same card for both. This further helps in calculating payable tax.
- Business credit cards come with various bonus facilities for different categories. You may find travel bonuses, airfare bonuses, hotel bonuses, bonuses on shipping charges, internet service bonuses, and advertising and marketing bonuses on your business credit card. The need of a business owner remains different from the needs of a consumer, so in order to ensure the coverage of those needs, business cards are needed.
- Some business credit cards may offer purchase protection and extended warranties to ensure financial support. If an expensive product you bought for your business purposes gets damaged, you don’t have to be liable or carry any financial burden.
- Business credit cards not only help business owners it also helps the employees. If employees are given business credit cards, they can also be benefited from all the financial perks discussed. All the expenses made by the employees will be credited from the same account, and every card can be used simultaneously.
- Business credit cards help conduct huge purchases by giving you more time to return. The business credit cards cover all your expenses, and it provides a time span of 30 days to return. If you have paid some minimum amount, the time span may extend.
- Business credit cards make the new identity of the holder as an owner or an employee of a business. This identity attracts different tax provisions for the use of your business credit cards. You may get various tax benefits on your business credit cards.
- Holding a business credit card may make you eligible for other benefits. It can help you become eligible to get loans for your business easily.
- Other bonus options for getting benefits include cash backs on payments, reward points on purchases, membership reward points if credit card bills are paid in time, etc., which also avoids FX UK ATM charges.
What are the Eligibility For Business Credit Card in the UK
You may require various documents to produce before the bank has an existing account. Business credit cards are easy and convenient for every type of business. It provides various benefits. To be eligible for acquiring a business credit card.
- To be able to get a business credit card, you need to be a customer of the same bank.
- The bank will provide an application required to fill with all the details about your business and credit card necessity.
- The application form consists of several questions about your business, the credit limit you will require for your business, and how many cards you require.
- You need to provide documents that prove your business credit score and your transactions.
- The bank also requires some additional documentation about your business bank accounts by providing bank statements.
- The credit limits of the credit card provided by the banker may vary according to the credit ratings of your business. If the business is new or a business has not conducted enough transactions, the credit limits go down. The credit limits may vary from £1,000 up to £10,000. But according to the business, it can even go beyond £50,000
- You are also required to provide documents on the interest rates of your business.
- Business credit cards come with a price charged for the credit services. These charges may be monthly or annual depending on the policies the bank offers. The interest rates are 9.9% to 24.9%, but no interest payment is needed when full payment is made in time. You need to pay the charges as required by the bank.
* Any business owners are eligible for Business credit cards. They can be Freelancers, Sole proprietors, Corporations, and large or small business owners.
Request For Business Credit Card
Applying for a business credit card is as easy as applying for a personal credit card. The basic difference between the application form for a business credit card and a personal credit card is some additional questions asked with the intention to understand your business nature and the credit rates you require. The details asked in the business credit card form are divided into two sections.
- personal details section
- The personal information section asks for the basic introduction of the potential cardholder. It asks about the name, date of birth, nationality, and address.
- It also asks for the contact details, including your phone number, email address, current address, and permanent address.
- This section also enquires about your source of income, annual income, and position in the company.
- It also asks to mention how long you have an account in that very bank.
- Business details section
- The business details section asks to attach documents proving the registration of your company. You need to mention the registered name, registration number, and the trading address where you registered your business.
- All the details must be provided about the shareholders if the shareholder possesses more than 25% of the shares. It also requires details of all partners, directors, or committee members.
- Time Limit
- The bank notifies the acceptance and approval of the application within 10 working days from the submission of the application.
- Once your application gets approved, the business credit card arrives at your address. You can start experiencing the benefits by activating the card.
Conclusion
Like a personal credit card always has your back in financial situations arising, a Business credit card also backs up a business to conduct multiple and expensive purchases. It also provides various services to make the business grow bigger. Apply now for a credit card for your business and start getting numerous benefits.
