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    7 Replies Latest reply on Aug 23, 2008 12:33 PM by finsolamerica

    Business Credit Card at startup?

    TruthWearLLC Newbie
      Is it possible to obtain a business credit card from a bank such as Bank of America to start up my business or do I have to be in business already. My credit score is pretty good. I think I wont be able to get a loan because I do not have any collateral or assets to my name (Im a young entrepreneur who just graduated, what can I say). Any help would be so great. Thanks
        • Re: Business Credit Card at startup?
          Lighthouse24 Ranger

          You have to be in business. Before you can get a business credit card, you need a business bank account. Before you can open a bank account in a new entity's name, that entity (your business) has to exist. To show that it exists, you need a "birth certificate" for your business (a DBA form filed with your county clerk, articles of incorporation, or whatever document is appropriate for the legal structure you select). You also need a "social security card" for your business (an Employer Identification Number or EID assigned by the IRS). Once you have those, you are legally "in business."

          Take those documents to the bank, and tell them you want to open a new business account. They will assign you a bank officer, who will open your account and set you up for on-line access -- and then try to upsell you a whole lot of confusing stuff you don't need yet. Just say "no." A couple of weeks later, you'll start getting business credit card offers in the mail from every financial institution on the planet that has a card to offer.

          For a Sole Proprietorship, you can do all this in one afternoon in most places. It takes a little longer to form a partnership or corporation, but not much.
            • Re: Business Credit Card at startup?
              TruthWearLLC Newbie
              Thats great advice. Thank you. What I meant by be in business is Do I have to have already been doing business for a certain amount of time? But if all I need is to have it formed... great. That what I was hoping for. Thanks for the advice.
                • Re: Business Credit Card at startup?
                  Lighthouse24 Ranger
                  You're welcome.

                  The business structure you select, your personal credit history, and the assets you assign to your business (mainly the amount of cash you deposit to open your new account) will all affect the credit limit you receive initially -- but as your business establishes a credit history of its own, that limit will increase (just as it does for an individual).

                  Be sure to do business as a business from the very start. Use your business checks and credit card for all business purchases. Deposit your business revenues in that account. Not only does it make taxes and accounting easier, it establishes your business as a separate financial entity, and maintaining that distinction offers multiple advantages as you grow.

                  Again, best wishes!
                  • Re: Business Credit Card at startup?
                    WEBillions Adventurer
                    Lighthouse is right. I've done this recently in California. I just needed the forms. They didn't care that I hadn't even launched my site to the public yet. By the way, you can get two years of service for free from Bank of America.
                • Re: Business Credit Card at startup?
                  LUCKIEST Guide
                  As a young entrepreneur, you should visit a local SCORE office or go on line to SCORE.
                  SCORE has a Virtual Learning Center at "www.score.org" that has 26 on line courses.
                  Do you have a checking account now?? Having a good credit score helps.
                  Good luck, LUCKIEST
                  • Re: Business Credit Card at startup?
                    finsolamerica Newbie

                    If you are still seeking business credit please review the following:

                     

                    Small Business Finance Program

                    Does your business need funds to grow?

                    New businesses welcome

                    Credit Lines available from $100,000 and up

                    Six to eight week process from start to finish

                    Personal Credit Requirements – minimum FICO 625

                    No Financial Statements or Tax Returns Required

                    Modest initial cost, bulk of fees charged after lines are in place

                    Free Consultation

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                    Contact us today:

                    FINANCE SOLUTIONS OF AMERICA, LLC

                     

                    954-734-9669 or email us at finsolamerica@gmail.com