A corporation can hold a business credit card in its own name. As a result, the corporation must meet individual requirements, separate from any business owners, in order to qualify. The corporation will be evaluated across many different areas to determine if it is credit worthy.
Credit Score
If the corporation has been in existence for some time, it will have an independent credit score. This shows how the business has performed in making payments on other loans and to other vendors. A good score is essential.
Assets
If the business has assets, they will be owned by the corporation as a legal entity. These assets can include office space, technology, manufacturing equipment and real estate. These assets can be used as collateral to help qualify for a business credit card.
Business Plan
Often, a young business will have insufficient assets and credit to qualify. As a result, the business plan will become much more important. A bank can evaluate a company's likelihood to succeed based on the business plan presented. The bank will take a calculated risk on a corporation that shows promise of profits in the future. In particular, a corporation that has raised investor funds through a business plan will be given larger limits.
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