There are common criteria that financial institutions and banks consider before a business credit card/limit increase can be granted:
Furthermore, as a sole proprietor, mismanaging your personal financial affairs may impact the final decision from the bank. Part of this reason is because a sole proprietor is not recognised as an independent legal entity and the owner is legally liable for all the business’ debt. Directors associated with the business also need to have good credit records.
A business credit card forms part of several unsecured credit products offered by banks to help businesses manage daily operations, working capital and cash flow shortages. Before applying, ensure that you are choosing the right form of credit for the business’ needs.