You don’t need an army of employees or a traditional business structure to put a business credit card to work for you and your business. Whether you run a part-time consulting gig or a weekend dog-sitting service, even the smallest of side hustles can benefit from a business credit card.
Before submitting an application for a business credit card, learn more about the 4 most commonly asked questions about business credit cards.
Who can apply for a business credit card?
It should come as no surprise that operating a business is the first requirement of applying for a business credit card. However, you might not realize that your sole proprietorship is eligible to apply for a business credit card. If you work for yourself or you’re just starting out, your business can still reap the associated benefits of streamlining your finances and earning business-specific credit card perks.
How do I apply for a business credit card?
Applying for a business credit card is similar to applying for a personal credit card and can often be done online in a matter of minutes.
The application for a credit card may ask for:
- Your Tax Identification number, also known as Employer Identification Number (EIN)
- A Social Security Number for sole proprietors if there is no tax identification number
- Business entity structure
- Financial information including business revenue, expenses, and number of employees
Once you have provided this information, the bank or credit card provider will review your request and issue a decision. If your business is new or you haven’t established business credit, the credit card issuer will review your personal credit standing to help determine if you qualify.
When should I apply for a business credit card?
Most financial professionals recommend having at least one business credit card as you begin to incur business expenses. That’s because keeping your business and household spending separate will help you stay organized and avoid a headache at tax time.
Additionally, monthly credit card statements are a great tool to track business expenses and get a clearer view of operating costs.
Why should I apply for a business credit card?
- Access extra rewards. Business card rewards are often tailored to business spending, with extra perks for expenses like shipping, office supplies and business travel. For example, Zions Bank’s Amazing Cash® Business Credit Card offers up to 3% cash back on certain business purchases, including office supplies and internet services. If you choose and use your business credit card wisely, you can take advantage of cash back and points rewards, along with incentives like sign-up bonuses and introductory rates similar to those offered by the Zions Bank Amazing Rate® Business Credit Card.
- Keep cash flowing. When a payment doesn’t come in on time or a piece of equipment breaks down, a business credit card can help cover expenses to keep operations running smoothly. Credit cards are the second most popular form of financing, behind loans and lines of credit. Your business card can serve as a revolving line of credit or as a short-term business loan. For longer-duration borrowing, you’re better off applying for a loan.
- Help build your credit profile. You may be a small business now but establishing a strong credit history will open up borrowing options for the future. As with a personal card, you can begin to build a positive business credit profile by consistently making on-time payments and keeping your balance at less than 30% of your credit card limit.
Every dollar matters when you’re building a business. Put one of Zions Bank’s Amazing business credit cards to work for you. Not sure which business credit card is right for your business? Compare Zions Bank’s business credit cards, all of which come with competitive benefits and no annual fee.
Content above is offered for informational purposes only and does not constitute tax, legal, financial, or business advice. Contact a specialist about your specific needs and circumstances.
