A business credit card is
suggested for use by entrepreneurs, corporate managers, and many other
cardholders who need the purchasing power with a good credit limit in
order to execute business schemes and goals. It is a very useful tool
when the business grows and expands, as capital will be in form of
loans. For work-at-home moms, its use is mainly to profit from a credit
account that is suitable to one's small business and personal needs.
Making the decision to apply for a business credit card is not that easy, as there are many things to consider.
Filing an Application Form with Personal Information
filing the application form, some basic information is needed such as
name, complete present and permanent address, date of birth, specimen
signatures, valid photo-bearing identification cards issued and signed
by an official authority, social security number and some other
important information that's relevant in verifying your identification.
Basic Application Requirements
applicant must be of legal age reaching a required minimum gross annual
income. You must also be a regular home-based employee or if
self-employed, you should own a business operating for no less than
what the credit card company requires (usually a minimum of 2 years).
Since you only work at home, you can set your residence as your office
address. A landline phone is also another important requirement.
Documentary Requirements if Employed
employed, you must present your latest tax payments signed by
employer's authorized representative together with an original Proof of
Employment and Income indicating status and length of service. Prepare
also a copy of your latest full month pay slip.
Documentary Requirements if Self-Employed
self-employed, a pre-requisite in applying for a business credit card
is to have a legally recognized and named business. A corporation and a
limited liability company are the only ones allowed to avail of a
business credit card. The next important requirement is your business
license. It is still required, even when you are only working at home.
It is also presumed that you already have a Business Tax ID Number.
They can be obtained from the Internal Revenue Office. Having it
separates liabilities of your personal and business credits.
can also resort to an option of qualifying for a business credit card
with no personal guarantee if your business is acknowledged as credit
worthy. It is possible if you have a strong and stable credit record,
with at least three main business credit agencies offering for a vendor
credit line, business loan or a revolving credit.
Finances and Other Necessary Considerations
can also help if you already have an existing personal credit card,
since it's also very important for credit card companies to check the
applicant's latest payment history on other accounts (aside from
checking the applicant's latest audited financial statements, bank
statements, annual income and even job history). Your excellent banking
relationship will serve as a support for a faster approval, with your
annual revenue usually used to help decide what your initial credit
line will be.
a work-at-home mom, it is recommended not to exploit your business
credit opportunities. You may be held personally liable to it, which
may lead to ruining your business and even your own personal life in