Business credit cards are a great way to allow your business to expand and reap the benefits of being a part of an ever-growing economy. In order to qualify for business credit, however, you'll need to get a DUNS number. A DUNS number is simply a number that the bank will provide you with on request. The DUNS number is not given out to everyone with a business credit card, but it can be used to help simplify the approval process.
Duns number requirements vary from business to business. Usually you'll have to own a certain amount of property, at least five thousand square feet of space or lease office space to function as a business. Some banks only want business credit card holders who own a minimum of five thousand square feet of space to function as a business. If you happen to own property and don't qualify for business credit, a DUNS number will not be a factor in qualifying for business credit.
When you apply for a business credit card, they'll ask you to provide information about your business. This includes Duns number, the nature of your business and the amount of money you expect to make in a year. Most banks require you to maintain a balance above a certain amount in order to obtain business credit. In order to maintain that balance, you may need to add money to your business checking account. The checking account should not be the family's primary checking account as this can cause problems later.
When you apply for a business credit card, it's important that you read the terms and conditions. See if there is a minimum balance requirement. Determine if there are fees associated with the business credit card. Be sure to read through all of the terms and conditions before you agree to them.
Business credit cards can help you establish long term business relationships. Before you get a business credit card, see if it's possible to open a savings account for your business. If you want to get a business credit card, you should also have an interest-bearing checking account that is separate from your personal checking account. If you want to use your business credit card for a specific purchase, make sure that you are able to pay for it. For example, if you're going to buy office stationery, you need to have the money in your checking account before you can buy it.
Business credit cards are a great way to help build your business. If you run your business out of your home or garage, you may not qualify for standard credit. However, if you have a garage or a store front, you can get business credit with Duns number. Keep in mind that you will need to keep good . . . . . . records of your expenses so that you don't get into trouble later on. When applying for business credit, Duns number is one of the things you need to consider.