Guide to business credit card limits & how to increase them

When you first get a business credit card, you’ll see that it usually comes with a credit limit. Similar to a personal credit card, that limit is the most you’re allowed to spend. These limits can vary widely, often ranging from $10,000 to over $100,000, depending on what your business qualifies for. Some lenders even offer business credit cards with no preset spending limits, giving you more spending flexibility.

Several factors can influence your business credit card limit. Understanding how it works can help you use it to your advantage—whether it’s by boosting cash flow, earning rewards or covering business expenses.

What you’ll learn:

• A business credit card limit determines how much you can charge to your business credit card.

• Your personal credit, revenue and business’s financial health are all factors that can impact your business’s credit limit. 

• In some cases, lenders may increase your business credit card limit automatically. You can also request an increase yourself.

• Prospective cardholders should consider how they plan to use their business credit card when exploring options and their potential credit limits.

A business credit card limit is the maximum amount the card issuer allows you to spend. So if your business credit card limit is $25,000, that’s how much you can charge to your account—whether it’s all at once or spread out over multiple months and purchases.

Similar to personal credit cards, business credit card limits can vary depending on your qualifications. Some factors that may influence your limit include:

Lenders look at your full financial picture, including your business’s assets, liabilities, current debt and cash flow. If your finances are in good shape, it shows your business is stable and can handle credit well. Keeping your cash flow positive and your debt low can go a long way in helping you eventually qualify for a higher credit limit.

Your revenue gives lenders a good idea of how much money your business regularly brings in. If your revenue is steady or growing, it demonstrates how your business is reliable, with room to grow. That kind of consistency can help you qualify for a higher credit limit—and suggests you’re likely able to cover expenses and keep up with payments.

What if your business is just getting started and you don’t have a long credit history? In cases like that, lenders often look at your personal credit score. Having a strong personal credit profile—where you make payments on time, keep credit usage low and have a good credit mix—can help strengthen your application and improve your chances of getting approved for a higher starting limit.

There are a few reasons you might consider a higher limit. Maybe you’re managing seasonal cash flow changes. Or you’re planning for a big purchase. You could be looking to earn more rewards or just want a more flexible financing option than a loan or crowdfunding. 

In some cases, lenders may allow you to increase your business credit card limit either automatically or by request.

The process to increase your business credit card limit can vary, but here’s a general look at how it could work:

1. Review your current credit limit and usage. Before requesting an increase, take a look at your current credit limit along with how much you’re spending each month. This can help you determine how much of an increase you’ll want to ask for.

2. Contact the credit card issuer. Call the customer service number on the back of your card to ask for the increase. Just keep in mind that approval will likely depend on your company’s financial health and growth.

3. Provide the necessary financial information. Make sure you have your updated business financial statements, proof of assets, tax returns or sales and revenue projections ready to back up your request.

4. Discuss the terms. Let the issuer know how much of a credit limit increase you’re looking for and why it would benefit your business. And don’t forget to check the fine print—like any interest rates, fees or other terms that might come with the increase.

Your credit card issuer may also automatically increase your credit limit after several months of on-time payments. That said, you can always request an increase yourself to help manage business expenses. Just remember—approval isn’t guaranteed.

If you aren’t able to increase your business credit card limit—or you’re simply interested in a card with different benefits or no preset spending limit—it might be worth opening a new business credit card. Getting a new business credit card may allow you to tap into new perks like cash back or travel rewards and give your business more flexibility as it grows and starts taking on larger expenses. Depending on the card issuer, it could also offer payment solutions that make it easier to manage your business expenses.

Before deciding to go with multiple business credit cards, think about whether you can responsibly manage them. Are you comfortable with extra fees such as annual charges? Take a moment to weigh the pros and cons before choosing what’s best for you.

A higher credit limit on your business credit card can make it easier to cover expenses—and allow you to earn some great rewards. If you think an increase could help support your business goals, consider contacting your credit card issuer. Just be prepared to provide some information about your company and why you’re asking for the increase.

Capital One offers options for companies looking for higher credit limits and for those in search of a fixed credit line—all with benefits like one-time cash bonuses, low introductory APRs, unlimited cash back or bonus miles. Compare Capital One business credit cards today. Before applying, see what you’re pre-approved for without any impact on your credit.