Applying for Business Credit Cards with Instant Pre-Approval

Applying for a new credit card invites unnecessary fuss, and that's why business credit card pre-approval is gaining so much popularity. You don't need to wait days or weeks for your card's pre-approval to take advantage of a particularly appealing reward or perk. The business credit card pre-approval can secure credit faster and optimise financial management with minimal disruption to operations.

In this article, we'll learn about instant approval of business credit cards or at least nearly instant approval. We'll also reflect on what's instant pre-approval, its importance for business credit cards, eligibility criteria for pre-approval, the role of soft credit pulls in pre-approval, the difference between pre-approval and final approval processes, types of business credit card approvals, drawbacks of these instant approval business credit cards, and last but not least, how new businesses can get a business credit card?

What is Instant Pre-Approval?

Instant pre-approval is a quick evaluation process where the lender/financial institution immediately decides your credit card or loan eligibility. Within a few seconds or minutes of applying, you receive feedback on whether or not you meet the initial criteria for approval. While this process speeds up your application process, it's important to note that pre-approval is not a final credit approval guarantee but rather an indication of likely eligibility.

✍️Key Takeaways:

• A pre-approval letter doesn’t guarantee eligibility for a specific loan amount or interest rate.
• Pre-approval from your credit card provider can be a helpful tool for determining which card you're likely to qualify for. However, it does not guarantee approval.
• Lenders use pre-approval letters, also known as conditional approval, for credit cards and other financial products as a marketing tool.
  

Role of soft credit pulls in pre-approval

Pre-approval often involves a soft credit pull, which allows the lender to check your credit report without impacting your credit score. This gives the lender a general overview of your creditworthiness, including your credit history and financial behaviour. Since soft credit pulls do not affect your credit score, they are used as a preliminary step in the pre-approval process, making it a risk-free option for consumers.

Difference between pre-approval and final approval processes

Pre-approval is a preliminary assessment based on limited financial data, including soft credit checks. It tells you whether you will be approved but does not guarantee it. 

For final approval (final step), the financial institution will conduct a more detailed review, typically involving a hard credit inquiry and verification of other financial information, such as income and debts. Only after this will there be a more thorough review regarding the official approval of your credit card or loan. This two-step process ensures that the lender can assess your overall financial stability during pre-approval and your comprehensive financial data for final approval.

Importance of Instant Pre-Approval for Business Credit Cards

Instant pre-approval for business credit cards provides quick access to credit, allowing businesses to manage cash flow and cover urgent expenses without delay. The streamlined process eliminates lengthy paperwork, enabling faster approval decisions. This flexibility supports business growth by ensuring financial readiness for operational needs and strategic investments. Moreover, the benefits you get include the following:

• Builds Business Credit Profile: By quickly obtaining and responsibly using business credit, companies can build their credit score, improving their chances of securing larger loans or better terms in the future.
• Confidence in Financial Planning: Pre-approval clarifies business owners' borrowing capacity, allowing them to plan ahead confidently and make strategic growth decisions.
• Improved Cash Flow Management: With instant access to credit, businesses can smooth out cash flow fluctuations, covering operational expenses during lean periods while waiting for revenue.
• Financial Flexibility: Instant pre-approval allows businesses to make immediate purchases or investments, helping them stay agile and responsive to market demands.
• Quick Access to Credit: Businesses can obtain credit faster, allowing them to address urgent financial needs, manage cash flow, or seize growth opportunities without delays.

These benefits make instant pre-approval a powerful tool for supporting business growth and operational efficiency.

Eligibility Criteria for Pre-Approval

Pre-approval for a loan or credit card depends on several factors that lenders use to assess your business's financial stability and trustworthiness. Here's how it typically works:

Common Requirements for Businesses to Qualify

Lenders usually require businesses to meet basic requirements, including consistent revenue, a minimum period in operation (often 1-2 years), and a robust business structure. These lenders want to ensure your business can repay the loan or manage credit responsibly. Financial documents like bank statements or tax returns may also be requested to prove stability.

Impact of Personal and Business Credit Scores

Your personal and business credit scores play a critical role in pre-approval. Lenders often rely on your credit score if you're a startup or lack an established credit history. A good credit score indicates that you're responsible with credit, increasing your chances of pre-approval. The business credit score becomes equally important for well-established businesses, reflecting how well your company manages debt.

Variability of Criteria Across Different Lenders

Not all lenders follow the same criteria. Traditional banks may have more stringent requirements, focusing heavily on business history, credit scores, and revenue. Online lenders or alternative financiers might be more flexible, prioritising cash flow or recent financial trends. Each lender has its own unique process, so it's critical to understand their specific requirements before applying.

Knowing these factors can help you prepare for a smoother pre-approval process and increase your chances of success.

Types of Business Credit Card Approvals

1. Pre-Approval

A pre-approval business credit card offers a higher chance of getting approved for a card but doesn’t guarantee it. It’s based on a quick assessment of your credit and business details, usually involving a soft credit check.

2. Guaranteed Approval

Guaranteed approval is often offered to those with poor or no credit. These are generally secured cards that require a deposit. While approval is almost inevitable, the credit limits are lower, and you must meet minimum requirements like income.

3. Instant Approval

With instant approval, you get an immediate decision within minutes after applying for a business credit card. This type of approval is based on your creditworthiness, and the criteria can vary by lender, but not all applicants qualify for instant use of the card.

These business credit card approval types cater to different credit profiles and business requirements, helping you find the best fit based on your financial situation.

Top Business Credit Cards with Instant Pre-Approval

Here are some of the top business credit cards with instant pre-approval available in the UAE, along with their key features, pros, cons, and other details to help you choose the right one for your business:

1. Emirates NBD Business Credit Card

• Best for: Flexible cash management with travel perks.
• Features: High credit limits, Plus Points, and 75% cash advance.
• Pros: Free for life, airport lounge access, easy installments.
• Cons: Limited discounts, capped grocery rewards.

2. CBD Business Credit Card

• Best for: Extended interest-free credit periods (up to 52 days).
• Features: High credit limits, cashback options, and international spending discounts.
• Pros: Free for the first year, exclusive lifestyle offers.
• Cons: High minimum income requirement.

3. RAKBANK Titanium Business Credit Card

• Best for: Businesses with high international transactions.
• Features: 90% cash advance limit, cashback on local and foreign spending.
• Pros: Zero annual fees, extensive travel perks.
• Cons: Requires a minimum of five years of business operation.

4. Emirates Islamic Bank Business Credit Card

• Best for: Frequent travellers seeking to maximise miles and lounge access.
• Features: EI SmartMiles, unlimited lounge access, travel insurance.
• Pros: 750+ airport lounges, bill payment facilities.
• Cons: Limited local rewards outside of travel benefits.

5. ADCB Business Platinum Credit Card

• Best for: Simple cashback benefits and lifestyle perks.
• Features: 1% cashback on all purchases, premium lounge access.
• Pros: Dining and spa offers “Buy 1 Get 1 Free” deals.
• Cons: Limited cashback rate and additional fees on late payments and cash advances.

Read More: Points. Miles. Cashback. Confused by corporate card perks?

Drawbacks of Instant-Approval Business Credit Cards

The challenges make it important to consider the long-term costs carefully before opting for an instant-approval business credit card. Here is a list of drawbacks to take into consideration:

1. High Interest Rates: If you carry a balance from month to month, instant-approval cards often come with higher interest rates, increasing your costs over time. When a lender makes getting a credit card easier, they accept a higher risk of loss. Consequently, these lenders increase interest rates to ensure they're getting paid for this extra risk.

2. High Fees: These business cards may have higher annual fees, cash advance fees, and other charges, including foreign transaction fees, balance-transfer fees, late-payment fees, and returned check fees, which makes them costly to maintain.

3. Damage to Credit: Using your personal credit score for the application and carrying high balances can negatively affect your credit score. If your business can't pay its debts, you will be personally responsible for it, so it's best to keep personal and business finances separate.

4. Limited Credit Limits: Instant-approval cards often offer lower credit limits, which can increase your credit utilisation ratio and potentially harm your credit score. If you have a lower credit limit, it will force you to use over 30% of your available credit, which can negatively affect your score.

In short, some instant approval credit cards have lower credit limits, limiting your ability to make larger purchases. This can be a drawback if your business has higher expenses, as the card may not provide enough credit to cover all your needs. It’s important to consider your business’s spending requirements before choosing a card with a lower limit.

Therefore, consider Alaan as your one-stop solution:

Why Choose Alaan Over Traditional Business Credit Cards?

Alaan goes beyond what traditional credit cards offer by providing a smart, all-in-one solution for business expenses. With features like automatic receipt matching, real-time tracking, policy compliance, and detailed analytics, Alaan helps businesses streamline spending, control costs, and maximise financial efficiency—without the hassles of conventional banking constraints.

Reason to Use Alaan: Our Corporate Card offers seamless expense management, unlimited cashback, and real-time visibility, all with no annual fees and unlimited card benefits.

Key Features: The card offers pre-approval with instant access to credit, no hidden fees, and simplified spending management.

• Annual Fee: No annual fee
• APR: N/A
• Foreign Transaction Fee: No transaction fee
• Rewards: Earn up to 2% cashback on all foreign exchange transactions with no cap.
• Welcome Bonus: 112,500 AED; Sign up today to get yours. 

Schedule a demo today to get more information on your welcome bonus!

👍Pros:

• Up to 2% unlimited cashback on foreign exchange spend.
• No annual fees or minimum balance requirements.
• Unlimited virtual and physical cards for employees.
• Real-time expense tracking and automated receipt management.
• Seamless integration with accounting platforms like Intuit QuickBooks, Xero, Oracle NetSuite, Microsoft Dynamics, and more.
• Customisable spending limits for each employee.

Also, the Founder and CEO of DIY Advertising, Anton Trenin, explained how they were struggling with cards previously,

Alaan to the Rescue!

These challenges highlighted the need for a more efficient corporate card and expense management system. Custom spending limits with Alaan cards were a rescuer for DIY Advertising as the company can manage its finances more effectively. Speaking on custom limits, Anton said,

The cards even helped DIY Advertising offer its finance team real-time visibility of expenses so they can track and manage ad spending across different platforms. This ensured budget adherence, detected anomalies, and prevented overspending. 



Read More: Points. Miles. Cashback. Confused by corporate card perks?

Getting a Business Credit Card for New Businesses

Below are some factors that help new businesses in getting business credit cards:

Qualifying with a Personal Guarantee

For new businesses, securing a business credit card often requires a personal guarantee from the business owner. This means that the individual is personally responsible for repaying any debts incurred by the business. Lenders typically request a personal guarantee because new companies may not have an established credit history. By providing a personal guarantee, the business owner assures the lender that they will repay any borrowed funds, even if the business cannot.

The personal credit score of the business owner becomes crucial in this process. If the personal credit score is high (usually a FICO score of 690 or above), the chances of qualifying for a business credit card increase. This guarantee acts as a safety net for lenders, ensuring that even if the business fails, they will still personally recover the owed funds from the business owner.

Importance of Obtaining an EIN

An Employer Identification Number (EIN) is a unique nine-digit number the FAT (Federal Tax Authority) assigns to identify a business entity for tax purposes. Obtaining an Employer Identification Number (EIN) is essential for separating personal and business finances; also, it’s often required when applying for business credit. Here’s why:

1. Separating Business and Personal Finances: An EIN allows you to keep your business finances separate from your personal finances. This separation is important for building business credit and protecting your personal assets from any liabilities the business may incur.
2. Building Business Credit: An EIN is a key step in establishing your business credit profile. Lenders and credit card issuers use the EIN to track your business’s financial health, helping build your business credit score over time.
3. Required for Business Applications: Many lenders and credit card issuers require an EIN when applying for business credit cards. It acts as a formal identification number for your business, similar to how a Social Security Number works for individuals.
4. Professionalism and Credibility: An EIN gives your business a more professional appearance. It signals to financial institutions that your business is legitimate, increasing your chances of credit approval.

Unlike traditional credit card providers, Alaan simplifies the process, making obtaining a card easier for new businesses. With fewer barriers and a streamlined application process, you can get started without needing complex personal guarantees or extensive credit checks. Here’s how to get started!

Steps to Build Business Credit from Scratch

You can start by making small purchases with the business credit card, paying on time, and ensuring all payments are reported to business credit bureaus. This helps establish your business credit profile over time. Here’s how:

1. Incorporate Your Business and Obtain an EIN
   Start by legally registering your business as a corporation or an LLC to separate your personal and business finances. Then, obtain an Employer Identification Number (EIN) from FAT. This is essential for tax purposes and is required by many lenders to identify your business.
2. Open a Business Bank Account
   Once your business is legally established, open a business bank account. This is crucial for tracking cash flow and creating a clear separation between personal and business finances. It will also help establish a financial history or record for your business.
3. Apply for a Business Credit Card
   Use your EIN to apply for a business credit card. Even if you have a new business, some credit cards are designed specifically for startups only. Regularly using the card and paying off the balance on time will help establish a credit history.
4. Establish Trade Credit
   Work with trade credit vendors and ask them to report your payment history to business credit bureaus. This will help establish your business’s creditworthiness. Paying on time or early will strengthen your credit profile.
5. Monitor Your Business Credit Report
   Regularly check your business credit report with agencies like Al Etihad Credit Bureau (AECB) and Dun & Bradstreet. Monitoring your credit report even allows you to assess financial risks and make it error-free. Overall, it gives you a better understanding of how to improve your credit score.
6. Pay Bills on Time
   Timely payment of all business-related bills, whether loans, credit cards, or vendor accounts, is key to building a strong credit history. Late payments can negatively impact your business credit score.

By following these steps consistently, you’ll establish a strong business credit profile, which will be crucial for securing financing, negotiating better payment terms, and growing your business.

The Final Word

Instant pre-approval for business credit cards helps your business quickly access credit and avoid time-consuming procedures. This is ideal for managing urgent expenses and maintaining cash flow. It offers a simple way to build your business’s credit profile early.

Choosing the Right Business Credit Card pre-approval is Important for you

When selecting a card, compare credit limits, rewards, and fees. For businesses in the UAE, cards like the RAKBANK Titanium or Emirates NBD Business Credit Card provide flexibility and perks such as cashback and lounge access. Choose a card that fits your spending habits and financial needs.

Explore Better Corporate Card Options

You should explore various instant pre-approval credit cards that offer rewards and low fees. Platforms like Alaan simplify expense management, allowing your business to track and reconcile petty cash in real-time. Explore Alaan cards today and streamline your business finances.

Want to reach out to our experts? Book a demo today to achieve your desired ROI!