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When reporting annual revenue on a business credit card application, issuers typically want to know verifiable total revenue for the previous year. While it's tempting to inflate the totals or include projections, you don't need large revenue amounts to get approval.
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What is annual business income?
Annual business revenue is the total income generated by a company during a year from products sold, services performed, fees received, interest, or dividends, before tax deductions and operating expenses.
How to report business card revenue
It's important to stick to the facts when reporting your business's annual gross revenue on your business credit card application. But don't sell yourself short. Here's what to do.
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Determine the annual total revenue. This is your income before taxes and other expenses are deducted. This is different from profit, which is revenue minus costs. Total revenue may include several sources of business income, such as sales of business products and services, surplus equipment and assets, and even business inventory.
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Excludes personal income. For example, if you have a full-time job and sell items on eBay as a side hustle, your income from your full-time job should not be considered “income.” Instead, include it in the “Income” field on your application.
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Withdraw your earnings from the appropriate time frame. Numbers must be from the previous year. Generally, this means that sales forecasts should not be reported as revenue, but depending on the issuer, this may be OK if the business is new.
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Please make sure you have all the information available. If you can't confirm, please don't report it. In some cases, issuers may ask for documentation to support the numbers they report, so it's best to stick with what you can prove.
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Update your revenue information as needed. Your company's revenue can affect your credit limit. If your verifiable annual earnings improve after you're approved, be sure to update that information with your issuer, especially if you need a business credit card with a higher limit.
🤓 Otaku Tips
Is your business generating a lot of revenue? Consider business credit cards. These cards are only available to corporate businesses, and approval is based on factors such as annual revenue and bank balance rather than personal credit. For eligible businesses, corporate cards can offer greater purchasing power without a personal guarantee.
Can a new business get a credit card without any revenue?
New businesses can obtain a business credit card even if they are not yet generating revenue. If your business has no actual revenue, just enter $0 in the annual revenue field. Instead, issuers look at your personal income and credit score to determine approval and credit limits.
You may be a sole proprietor if:
