Small-business credit cards can help you carefully manage your company's expenses while earning valuable cash back or travel rewards. As your profits and employee headcount increase, you may start to outgrow the cards you originally started with.
Today, we'll examine what to consider when switching to a corporate credit card.
Be prepared to share financial data
Not all business owners can qualify for a corporate credit card. Issuers may set minimum revenue benchmarks and require that you have an established business credit score, among other specific criteria. You'll likely have to meet minimum spending or earning requirements that you can prove.
American Express, for example, requires your company to have grossed more than $4 million in the previous fiscal year — and you can't be classified as a sole proprietorship.
Of course, you'll have to prove to the issuer that your company meets any required criteria and provide supporting documentation. Amex says to expect to be asked to hand over the following, for instance:
- Recent audited financial statements
- Details on your company's structure and organization
- Tax information, including a federal tax ID
- Contact information for your company's authorizing officer
If you're looking to take the next step in your company's credit needs but don't quite meet the thresholds established by the major issuers, you could also look into applying for the Brex Corporate Card. This is designed to be a corporate card for startups, but the company uses innovative technology to improve its underwriting standards and make the card more accessible to companies that are still in the growth stage.
