Google Credit Card for Small Business

Could your business use a line of credit on your next Google advertising campaign?

While companies like Amazon.com and Macy’s Inc have offered credit cards to its customers for years in order to increase sales now the internet giant Google is jumping on the credit granting bandwagon.

The new Google credit card for small business owners is Google’s first push into the business credit industry.

According to a Reuters Report Google is sending email invitations next week offering this new credit card to a select number of business customers.

The card carries a MasterCard logo with an 8.99 percent APR and will be issued through World Financial Capital Bank. Even though the card is in the “beta” test stage it will be interesting to see how competitors like Microsoft Corp, Yahoo Inc, and Facebook react.

Even though Facebook ads took the online advertising industry by storm Google continues to stay ahead of the game and stay competitive with this fresh approach.

Will these internet juggernauts come out with their own version of vendor financing for their business customers?

Only time will tell but with Google having first mover’s advantage I wouldn’t be surprised to see other similar versions being introduced into the marketplace from these competitors.

During the test phase Google credit card cardholders will only be able to purchase Google ads with the card. The line of credit was designed to help small and medium-sized businesses that advertise on Google but who often don’t have the funds to support a heavy ad campaign says Claire Johnson, vice president of global online sales for Google.

This idea could not have come at a better time as many small businesses are cash-strapped and need creative ways to grow and market their products.

Now when it comes to getting approved Google stated that it will evaluate a customer’s creditworthiness through a combination of internal methods and consulting with a financial partner.

It’s keeping quiet on the amount of credit limits being offered but suggested that it may be based on previous monthly expenditures.

Brent Callinicos, Google’s Treasurer, stressed that the main motive for the card was to provide loans to Google customers in an economic environment in which getting credit can be tough.

One popular perk missing from the Google credit card is the ability to rack up airline miles with purchases. But Callinicos said he did not think the omission will hurt the card’s appeal.

“I think if you had the choice of an 18 percent credit card and miles versus an 8.99 percent credit card and no miles, it’s a pretty easy choice,” he said.

Hopefully this new business credit card will report to the business credit agencies so not only can you grow your business using an Adwords business credit card but also build your company’s creditworthiness too!

It’s all about helping small business owners who are struggling to grow in a tough economy. It is the right thing to do and it’s simply smart business. Let’s hope more businesses like Google introduce new B2B financing programs so small business owners can get the help they desperately need.

What other B2B financing programs would you like to see introduced?

Looking for other sources of business credit? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value) =>

About the author

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for AllBusiness, a subsidiary of Dun and Bradstreet and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in American Express Small Business, Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.