Small-Business Credit Cards

What Lenders Look For

Most small-business credit card lenders will tell you it's not the size of your business that counts when they consider you for credit. "Size is not the issue," says Berger. "Over half of our corporate card users have only two or three employees. The issue is payment history. We look at the owner's personal and business credit history."

Defaults on payments, serious delinquencies, and any unresolved judgments or other derogatory information will seriously hamper a small-business owner's ability to get credit.

"Although we require that a company has been in business for about three years, the key thing we look for is a good credit record," agrees Chanaud. "We look most closely at the principal owner's credit history."

Like this article? Get this issue right now on iPad, Nook or Kindle Fire.

This article was originally published in the January 1997 print edition of Entrepreneur with the headline: Small-Business Credit Cards.

Loading the player ...

Seth Godin on Failing Until You Succeed

Ads by Google

Share Your Thoughts

Connect with Entrepreneur

Most Shared Stories