Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
A credit card specifically designed for business expenses can quickly become a vital part of any business owner’s wallet. A credit card application is a fairly straightforward process, but business owners should be careful to report accurately when it comes to income and revenue. Typically a credit card issuer requires gross annual revenue from the previous year on a business card application. The applicant should report all revenue before taxes and expenses.
Featured Partner Offer
Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card
On Bank of America Small Business New Account's Website
4.3
Forbes Advisor created additional star ratings so that you can see the best card for specific needs. This card shines for this use, but overall the star ratings may differ when compared to other cards.
On Bank of America Small Business New Account's Website
Up to 3% Cash Back
Earn 3% cash back in the category of your choice, 2% cash back on dining purchases and unlimited 1% cashRead More
Annual Fee
$0
Regular APR
18.49% - 28.49% Variable APR on purchases and balance transfers
Credit Score
Excellent Credit(750 - 850)
Editorial Review
For business owners who max out the 50k annual spending on the bonus categories, the rewards are substantial for a no-annual-fee card. Preferred Rewards for Business members can make out like a bandit with the 25-75% rewards bonus. The foreign transaction fee means it’s best to keep this card at home when traveling overseas.
Pros & Cons
- Introductory APR offer on purchases
- 3% cashback rate on the spending category of your choice
- Preferred Rewards for Business members earn a 25-75% bonus
- Foreign transaction fee
- 2% and 3% bonus categories have a combined annual spending cap of $50,000
- No intro APR offer for balance transfers
Card Details
- Get a $300 online statement credit after you make at least $3,000 in purchases in the first 90 days of your account opening.
- Earn 3% cash back in the category of your choice: gas stations & EV charging stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services, 2% cash back on dining purchases and 1% cash back on all other purchases.
- You’ll earn 3% cash back on purchases in the category of your choice and 2% cash back on dining purchases on the first $50,000 in combined choice category/dining purchases each calendar year, 1% thereafter.
- You can earn up to 75% more cash back on every purchase, if you have a business checking account with Bank of America and qualify for Preferred Rewards for Business Platinum Honors tier. That means you could earn up to 5.25% cash back in your selected choice category and up to 3.5% cash back on dining purchases on the first $50,000 in those combined purchases each calendar year, and up to an unlimited 1.75% cash back on all other purchases.
- No annual fee.
- Choose how to redeem your cash rewards-as a deposit into your Bank of America® checking or savings account, as a card statement credit or as a check mailed to you. Cash rewards don’t expire as long as your account remains open.
- To change your choice category for future purchases, you must go to the Mobile Banking app or Business Advantage 360, our small business online banking. You can change it once each calendar month, or make no change and it stays the same.
- 0% Introductory APR on purchases for your first 9 billing cycles. After the intro APR offer ends, a Variable APR that’s currently 18.49% to 28.49% will apply.
- Contactless Cards – The security of a chip card, with the convenience of a tap.
- This offer may not be available if you leave this page or visit our website. You can take advantage of this offer when you apply now.
Get a $300 online statement credit after you make at least $3,000 in purchases in the first 90 days of your account opening.
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
Why Is Business Revenue Required?
Credit card issuers use three things to assess whether the applicant will spend responsibly and be able to make monthly card payments on time:
- Business revenue
- Estimated monthly spending
- Personal income
Issuers also use this information to set a credit limit. The greater the business revenue, the more likely the applicant business will be approved—and the larger the limit.
What Needs To Be Reported?
Most business credit card applications require gross annual revenue from the previous year. This includes any money brought in from sales or services, sales of stock or anything else that brings money into the business. Make sure to not subtract expenses or taxes from the annual revenue (there’s no need to share profits or net revenue).
Be careful not to report sales projections as revenue (unless the issuer specifically states this is acceptable). Usually only revenue that can be verified should be reported.
Small business owners may opt to, or be requested to, report both business revenue and personal income in order to guarantee to the issuer that they’re capable of making monthly payments on their business card. Keep in mind a business card applicant does not need to have a registered business in order to qualify. Sole proprietors (like freelancers or Uber drivers) can also qualify for a small business credit card. Simply report the previous year’s earnings (before taxes) as revenue.
What Should Be Left Out?
Be careful not to report revenue or income that can’t be verified with pay stubs, receipts, invoices or other documents. Credit card issuers may ask for hard proof that shows the applicant earned what they claimed.
Don’t report any personal income that’s not related to the business being reported in the application. For example, if the applicant has a full-time job at a fast food restaurant and the application is for a business credit card for their graphic design side hustle, fast food wages should not be included as business revenue. (The fast food wages can be reported as personal income, however.)
What If an Applicant Doesn’t Have Business Revenue Yet?
Not having any business revenue yet is not necessarily a deal-breaker on a business credit card application. Applicants can enter $0 as revenue as long as they are able to list personal income later in the application. Any income from a part or full-time job, a spouse’s income or profits from the business can all be reported as personal income on the application. The credit card issuer will use this information to determine whether the application will be approved and to set the size of the credit line.
Depending on the issuer, some applicants can enter sales projections from new businesses as revenue. The applicant should call the issuer to ask if this is acceptable. Do not do this without explicit permission from the issuer. Keep any projection documents handy in case the issuer asks for proof.
Above all, don’t lie on the application. This is illegal and could lead to heavy fines or imprisonment.
Find the Best Credit Cards for 2024
No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.
Learn More
Bottom Line
Business owners and sole proprietors can qualify for business credit cards. Report gross annual revenue (before taxes and expenses) from the previous year on the application. Entering personal income can help boost the chances for approval, especially if a new business owner doesn’t have any revenue to report yet. Be careful not to lie on the application, which could lead to serious consequences.
