How to open a business credit card

Nov 25, 2024 | 5 minute read

Here’s advice from professionals on how to apply for a business credit card.

When you’re setting up your business, there’s a lot to think about, and getting a business credit card should surely be on your list. A reliable way to pay for purchases, business credit cards can give you an essential line of credit that streamlines your budget and expenses with a single source of funding. Set your company up for long-term success now by learning more about the benefits and how to apply.

Advantages to consider before opening a business credit card

Having a business credit card offers many benefits. One of the most important is that a business credit card keeps business financials separate from your personal expenses. This builds business credit and can help eliminate the complicated process of tracking and dividing up costs. Small business credit cards are also a powerful tool for improving your business’s cash flow. They allow you to make faster, more secure payments for ongoing services and one-time purchases while also extending cash flow, since you don’t need to make payments until your credit card bill is due. “Business credit cards can add tremendous value to the operating cycle,” says Jackie Thorson, vice president of business credit card sales at U.S. Bank. “They enable more fluid cash flow that, in turn, creates more purchasing power, so you have the ability to buy needed goods and services.” In today’s economic climate, ready access to cash is particularly important for managing expenses, staying competitive and preparing for what’s ahead. Another potential perk, rewards, can be earned over time. When you use a business credit card for everyday purchases, you can use those earnings to reinvest in your business – helping improve your bottom line and enabling growth.

When to apply for a business credit card

If you’re in the initial stages of  launching your business, you’ll have many priorities. These might include creating a website, hiring staff, and exploring real estate for a brick-and-mortar location. Rather than waiting to complete these steps, it’s best to apply for a business credit card as early as possible.

Starting early will play a positive role in your access to financing in the long run. “There’s a good chance you want to grow your business, and that may require getting a loan or line of credit in the future,” explains Thorson. “Using a business credit card will help you establish business credit, which is incredibly important early on.” If you take steps today to make your business credit-worthy, you may have a much easier time accessing the purchasing power you need to fund an expansion, purchase new equipment or even hire a lot of new staff.

What to expect from the application process

When you’re ready to get started, you can apply online, make an appointment to apply in person at your local U.S. Bank branch or choose the text-to-apply process. Both digital options require a simple one-page application. Or, if your business has complex finances, schedule an appointment with a trusted banking partner like our Business Card Consultants, who can help you navigate the process. The Business Card Consultants can take a close look at your business, uncover specific ways to improve how you manage money and provide you with a recommendation for the best business card to fit your needs.