Montreal, Québec · Member since 2016 · 133 posts · 19 votes
Good day,
I recently opened a business bank account and mention to the banker that I would like to obtain a business credit card in order to avoid using my personal credit card for online business expenses. The agent got back to me a few days later stating that it was refused because my business must be over 2 years old. The only way of getting a corporate credit card would be to provide collateral and apparently that would be extra charges.
That being said, has anyone encountered similar road blocks and if so, can you please advise how I can counter this obstacle?
Investor · Redding, CA · Member since 2016 · 180 posts · 102 votes
9y
You may be able to get a secured credit card in your business name where you put down X amount in cash and use it like a credit card. That helps you establish credit while you're going through the waiting period. Chase bank used to offer something similar to that.
Montreal, Québec · Member since 2016 · 133 posts · 19 votes
9y
Yes, that's exactly what I was thinking but the banker is not responding to my email asking him what the process would be. Not sure if he thinks I don't have the money or that I am a tire kicker. He will be up for quite a surprise if I decide to take the mortgage with another bank when comes time to purchase my first property
Real Estate Agent · Buena Park, CA · Member since 2016 · 743 posts · 424 votes
9y
You should talk to a small business advisor about all the steps you have to take to establish a successful small business including establishing business credit.It usually takes two years of successful business transactions and ownership of assets to establish a line of credit.Especially if you are land lording several properties,you need to prove you can pay the companies bills on time and without fail.
Montreal, Québec · Member since 2016 · 133 posts · 19 votes
9y
His initial solution was to use my new personal credit card which they sent to me. Why would I use my personal for business? Like, how will they evaluate my company's paying capabilities if I use my personal card? It's a bit frustrating
Montreal, Québec · Member since 2016 · 133 posts · 19 votes
9y
@Brandon Battle Oh yes, I fully understand that. My only concern is when purchasing online products or services such as my book keeping/ property management software or website creation/hosting... all those require credit cards.
Investor · Saint Hippolyte, Québec · Member since 2016 · 2 posts · 0 votes
9y
I successfully got a credit card for my business after only a couple months. I got through the bank were I have my personal stuff . I had to open a business account with them, and I can tell you it wasn't as fast as when its personal but it's definitely not impossible.