Instant Approval Business Credit Cards

Wednesday, June 13, 2012 at 9:10pm by Site Administrator

Getting Instant Approval for Business Credit Cards



Business credit cards can simplify finances, extend a line of credit available even in emergency situations, and come with rewards programs allowing you another option for lowering monthly bills. The recession brought tighter rules on who can obtain business credit, and more than ever business owners will find credit tends to be most available when it is required the least. However, it is still possible to access instant approval lines of credit. The right preparations will increase your chances, but it is first necessary to know the chances of gaining instant approval with different types of business credit cards.

Which Credit Options Allow Instant Approval?

Business credit cards come in several broad categories, and each type is beneficial in different circumstances. The most exclusive is a non-recourse account. In case of default, the lender can only go after the assets of the business. Since lenders must take care to manage risks, approval can take some time. The same is true to a lesser extent with unsecured credit cards. These are almost always backed with one or more personal guarantees along with the business credit score. A transparent application with all necessary information handy can increase speed of approval.

Instant approval is easiest to obtain with credit accounts through specific vendors. Credit with a gasoline retailer, an office supply store, national electronics chain, and other large vendors is typically approved within 24 hours and often approved while you are standing in the store. Missing information can lengthen the process. There are several steps any business owner needs to take to both ensure approval and speed the process along.

Formally Establishing the Business for Instant Approval

Upon establishing the business, you will need to obtain two important numbers. The employer identification number (EIN) will be required when making any credit application. It is also necessary when setting up a business checking account, getting a dedicated phone line for your business, and registering for a DUNS number. Once you have an EIN, you will need a dedicated phone line to register for the DUNS. Dun & Bradstreet administers the leading business credit bureau and will provide your DUNS number.

This is important because businesses do not automatically receive a credit record. Lenders can send information to the bureau without you having an established record, but they are unlikely to do so except in cases of default. Once you have a DUNS, you will be able to manually enter in all credit accounts and any services to which your business makes a regular payment. This information is used to compile a credit score, which can speed the approval process.

A business with fewer than six months of credit history is the least likely to obtain instant approval. The process can be sped up by registering the checking account with DUNS. Owners need to take a word of caution when opening a business account at a local bank. Some banks excel at service for small business while others target larger businesses or consumers. Ask to speak with the executive overseeing small business accounts at three banks minimum. Pay special attention to their enthusiasm and the programs they provide to help small businesses succeed.

Opening a credit line with a bank specializing in small business can be accomplished quickly. After the above steps are taken, you will need to compile financial statements into a professional format. These should include current debts and assets, such as accounts receivable, inventory, and any valuable equipment. It is best to have at least six months of credit history and a FICO score of at least 650.

Judging Instant Approval Options: Shop Around

Just because you can get a line of credit does not mean it will be beneficial for your business. Comparing the details of several accounts can be tedious at first, but it is much easier to scan these with practice. Details will be more or less important depending on your type of business and the planned use of the account.

An introductory APR and grace period of three to 12 months are used to entice new clients. The APR after this period should be expressed as a range of somewhere between 10 to 20%. Look for annual fees, balance transfer charges, and participation fees. Rewards programs can be great, but you’ll need to assess its usefulness in terms of your expenses. An oil company card offering 2% cashback on gas purchases is not the best choice when you can apply for a credit card providing 3% cashback on gasoline.

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