INDUSTRY
INSIGHT
BUSINESS CARD
PROVIDERS AND
THE GOLDILOCKS
CHOICE
A plethora of cash management options, credit and debit card
programs exist that purport to off er support, fl exibility, funding and a
“friend” to be there when you need it. Most providers of these services
and products off er some sort of solution that can be an asset to you
as a business owner. The question – just as it was for Goldilocks – is,
which solution fits your business “just right”?
By Josh Fiorini
Answering the above question requires some
thought and research, both on the products
and solutions being off ered, as well as on
your own operations and goals. Following is where
you should start your evaluation.
WILL I QUALIFY?
Th is most basic of questions needs to be asked
before you embark on the credit and card
application journey. Too many applications for
credit in a short period of time can hurt your credit
rating, potentially both personally and for your
business, so make them sparingly and do so if you
believe you have a good chance at qualifying.
DOES MY BUSINESS HAVE A CREDIT RATING?
An inquiry to Dun & Bradstreet or a call to the
corporate division of a major card provider will
likely give that answer, which will determine
whether you will be applying for the card solution
with your business’ credit leading the charge, or
your personal credit as the business’ owner. In some
cases, this two can be considered jointly.
As a rule of thumb, if your business has existed
for more than three years and has over $5MM in
annual revenue, it has a chance of being approved
on corporate credit. If your business is under that
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size or age, it is likely you will have to take the risk
of attaching your personal credit. In either case,
make sure your credit score and history are good.
If they are not, focus on building them as your fi rst
priority.
Keep in mind, even if you must personally
guarantee a business card, ensure that it reports to
your business’ EIN as well as your own SSN, so as
to build that business credit history.
FEES VS. FEATURES
Th ere are many card programs out there designed
for “enterprise applications” that off er a wealth of
management tools and reporting options. Some
allow you to issue cards with customized limits
employees or spending restrictions by category.
Many have robust reporting features that allow
you to track spending trends by category, which
can be benefi t budgeting and cash management.
Additionally, some card programs come with travel
services, concierge programs, rental car services
and exclusive benefi ts including preferred access to
event tickets, restaurants and hotels.
Generally, the more comprehensive the features
a card program carries, the higher the annual fee.
Don’t pay for what you don’t need. If you are largescale
business and need a large-scale infrastructure,
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