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Looking for the Best Small Business Credit Card?

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Best Small Business Credit Card

 

As a small business owner it can be a challenge on deciding what the best small business credit card is that best serves the needs of your company. Without a complete understanding of all the types of cards that are available it’s easy to make a mistake.

In this post I hope to provide you with better insight into all the types of business credit cards that are available in the marketplace.

Each card has its own unique purpose and can benefit your business in many ways. So it’s not uncommon that you’ll find several different types of cards that you’ll want to obtain for your company.

Here are the different types of business credit cards you have to choose from:

Business Check Card

This card works like a business checkbook because the limit is the amount of funds you currently have available in your small business checking account. Every time you use it to make a purchase the amount charged is deducted right from your bank account.

You can easily obtain a business debit card from the bank that services your business checking account. Keep in mind that using a business debit card does establish bank history (bank credit) but does not build business credit history.

Prepaid Business Credit Card

These cards provide a convenient alternative to carrying cash and work just like a credit card. You simply add funds to your account and whatever amount you add is available to use for purchases.

You never overdraw on this account and it also allows you to track your company expenses like a business check card. There’s no interest rate or APR and the fees are minimal if any.

Some business owners issue these cards and pay their employees via direct deposit which saves the company money in issuing standard paper checks.

Secured Business Credit Card

These types of credit cards are specifically designed for businesses with no credit or less than perfect credit history.

It requires a security deposit which establishes your card’s credit limit. In most cases a minimum deposit of $500 is required and once you begin making purchases you will receive invoices like a regular unsecured business credit card.

In my opinion these cards are ideal because it helps establish business credit, control spending, eliminates personal liability and protects your personal credit files.

Unsecured Business Credit Card

This card is the complete opposite of the secured business credit card because no security deposit is required. Credit limits are based upon many factors depending on the issuer and can range from personal credit and/or business credit ratings, years in business, annual revenues and so on.

Many of these types of credit cards give your business the opportunity to earn perks and rewards but one of the more important things you should pay attention to is liability and credit reporting.

If your business has established a strong enough business credit rating you may qualify for no personal guarantee business credit cards.

Business Charge Card

A business charge card has all the convenience of a credit card without the high price of interest. When using this card you’ll have to pay your balance in full each billing cycle.

Because you can’t carry a balance, a charge card doesn’t have a periodic or annual percentage rate, so there is no rate for a charge card issuer to disclose.

Finally, one of the new kids on the block is the Merchant Card. With no personal credit check, guarantee, or collateral required it definitely is a card worth looking into.

I couldn’t possibly cover every aspect of these cards in this post but I hope that you have gained a better insight into deciding what the best small business credit card will be for your company.

Looking to obtain business credit cards for your company? 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 secured and unsecured business credit cards, merchant cards, premium vendors, 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. A business credit builder system helping business owners build small business credit. He is a business credit blogger for AllBusiness.com, 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. 

The New Line of Business Credit: Merchant Card

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New Line of Business Credit: Merchant Card

 

Imagine having access to cash for your business at any time without having to provide a personal credit check, personal guarantee or collateral to qualify for it?

What if this line of business credit had no fixed payments and can be accessed anywhere credit cards are accepted?

What if every positive payment you made with this line of credit reported to the major business credit bureaus like Dun and Bradstreet, Experian and Lexis Nexis?

Sound too good be true?

Well, it’s not and I am happy to share with you one of the most innovative cash credit programs that I’ve seen in a long time.

If your business can benefit from an unsecured ongoing access to cash just like a line of business credit than a merchant card may be just what you’ve been hoping for.

Here’s how it works:

The approval process is strictly based on your company’s monthly sales volume not your personal credit. If you’re a new business you can qualify for instant access of $1,000 while other cash availability lines range from $1,000 to $250,000 per location.

This is not a loan so you don’t have to worry about fixed payments because the payback process is automatic and it’s based on your company’s future credit card sales.

Along with a merchant card, you will be setup with a merchant account to handle the payback process while allowing your business to accept credit cards from customers. 

Already have a merchant account?

No problem, your rates and fees will remain the same while your merchant card will give you the access to cash for your business anytime you need it.

Here are a few of the major reasons you should consider a merchant card:

  • No personal credit check
  • No personal guarantee
  • No collateral
  • Simple and automatic payback process
  • Reports to major business credit bureaus
  • Can be used at any location that accepts VISA®/MasterCard® or any ATM
  • Will not affect your ability to obtain loans or other credit cards

This program is a no brainer in my book and with a 95% approval rate there is really no reason not to have a merchant card at your disposal.

If you are striving to build a solid business credit rating without relying on your personal credit or personal guarantee than apply for your merchant card today.

Ready to apply for a merchant card for your business? 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 merchant cards, premium vendors, business credit cards, 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. A business credit builder system providing business credit with no personal guarantee. He is a business credit blogger for AllBusiness.com, 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. 

Startup Business Financing:Finding Funding for your New Small Business

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Startup Business Financing

 

Having a tough time finding funding for your new small business? It’s no secret that one of the main reasons businesses fail is lack of capital.

So to help better prepare yourself for success in your new business venture I’ve put together a few tips and funding options you may find useful.

One of the key things you should first determine is how much funding you need to not only start your business but also stay in business too. Don’t make the mistake of underestimating these numbers by projecting unrealistic revenues from future sales.

Next, plan a short term and long term startup business credit strategy which consists of funding the launch of your business (short term) and building your business credit files (long term).

Starting a new business involves risk and limiting the use of your personal credit and personal guarantee should be a priority for you.

Unfortunately, many business owners fail to build business credit separate from their personal credit right from the onset. As a result they find themselves back peddling and end up relying on their personal credit to finance the growth and expansion of their business.

Only after they exceeded their personal credit capacity do they realize that building business credit should have been part of their overall strategy. Don’t let this happen to you!

Some of the more popular options you have for startup business financing (short term) include:

P2P Loans

Microfinance Loans

Social Loans

Loans for Small Business

Business Credit Cards

Startup Business Grants

By also building your business credit files (long term) your business will be in a position to qualify for its own financing at much larger amounts without using your personal credit or personal guarantee.

Some of the funding sources that result from building business credit (long term) include:

Vendor Credit Lines

No Personal Guarantee Business Credit Cards

Business Line of Credit

Equipment Leases

Fleet Programs

Remember, you can obtain 10 to 100 time’s greater business financing with a strong business credit file than you could using your personal credit.

When you compare business credit vs. personal credit there are many serious things to consider including protecting the corporate veil.

Finding funding for your new small business can seem like a serious challenge in today’s economic environment especially if you resort to conventional means. There are many creative business financing options available so don’t get discouraged.

Part of building a successful business is putting a sound business financing strategy in place for both the short term and long term needs of your business. By doing so you can overcome one of the most common factors that cause businesses to fail which is lack of capital.

Ready to start building business credit for your startup? 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, business credit cards with no personal guarantee, 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 ($597 value) =>

About the author

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. A step-by-step business credit building system providing business credit with no personal guarantee. He is a business credit blogger for AllBusiness.com, 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. 

Business Credit Bureau:Equifax Launches Small Business Program

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Business Credit Bureau – Equifax

 

In a recent press release Equifax announced the launch of a small business program that now allows you to order your small business credit report.

This is great news for business owners because up until now the only way you could obtain a copy of your report was if your company was declined credit based on a member pulling your report.

Here is a brief overview of the press release:

Equifax Inc. (NYSE: EFX) today announced the launch of its Small Business initiative with services to help businesses understand, monitor and strengthen their own credit performance as well as the credit health of the companies they’re doing business with.

Through Equifax’s new Small Business website (equifaxsmallbusiness.com), customers can purchase the Business Credit Report, to easily and cost-effectively check the credit reports of nearly 25 million firms, supplying smaller companies with the type of information to help reduce losses, establish business credit, and benefit from profitable business relationships.

The reports, available via credit card individually or in discounted multi-packs of five, help customers evaluate a potential partner or supplier as well as gain valuable insight into their own business credit score. Unlike others in the industry, Equifax has an exclusive partnership with the Small Business Financial Exchange (SBFE), an organization made up of more than 400 small business financial institutions with a database on more than 24 million companies. This exclusive relationship allows Equifax to combine this unique information with its own distinctive data to offer the most comprehensive, relevant and predictive industry information in the United States.

“Equifax is dedicated to supporting this important segment of the business population by giving them easy access to the same comprehensive business credit data available to larger corporations,” said Dan Csont, Chief Marketing Officer, Equifax Commercial Information Solutions. “With a minor investment, a small business can prepare itself for large opportunities and mitigate risk.”

Equifax Business Credit Reports which are simple to obtain, easy to use and interpret include:

  • A trade and lending summary showing a company’s financial and non-financial obligations.
  • A public records summary detailing any judgments, liens, or business registration with secretaries of state.
  • Three scores to help evaluate a company’s credit risk, payment history and likelihood of business failure.

To help keep an ongoing, watchful eye on critical partner, supplier and customer relationships, Equifax also offers Business Credit Monitoring and Alert services. This service tracks a company’s credit report and sends a daily email if significant changes occur to it. Businesses also use the service to monitor their own business credit scores to help manage their own commercial credit.

To view the press release in its entirety titled Equifax Launches Small Business Program visit the Equifax web site.

SOURCE Equifax Inc.

With Experian launching its new Triple Score Business Credit Report and Dun and Bradstreet joining forces with Transunion and now Equifax announcing its own small business program it’s clear to me that business credit is finally getting the much needed attention it deserves.

Ready to get your business listed with the major business credit bureaus? 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 premium vendors, business credit cards, 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. A business credit solutions membership helping business owners obtain business credit. He is a business credit blogger for AllBusiness.com, 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. 

Business Debit Card: More Than a Checkbook and Better Than an ATM Card

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Business Debit Card

 

Opening a small business bank account is a vital part of running a business. I’m sure you’re familiar with online banking and overdraft protection but let’s cover the key advantages of the business debit card also known as the business check card.

While checkbooks will always play a part in your business the faster and more convenient way to make company purchases, track expenses, and manage finances is with a business debit card.

This card works like your business checkbook and each time you use the card to make a purchase the amount of the purchase is deducted right from your account. Basically the limit on your business debit card is the amount of funds you currently have available in your business checking account.

Now keep in mind some banks will provide overdraft protection and may even offer an unsecured business credit card that you can link to your account. This comes especially handy when you may not have enough funds to cover a debit card purchase.

For example, let’s suppose you have a $500 balance in your small business bank account and have an unsecured business credit card linked to that same account with a $1,000 limit.

You go to the store and purchase a computer for $900 using your business debit card. Since you only have $500 in your account the unsecured credit card picks up the difference of $400 by tapping into the $1,000 limit you have available therefore allowing the transaction to go through.

Another advantage that comes with a business check card is convenience. Each bank that offers a business debit card will either carry the Visa or MasterCard logo allowing you to use your card anywhere Visa or MasterCard is accepted which is pretty much everywhere.

This again comes in handy if you travel because you don’t have the hassle of getting out-of-town checks cashed. You also don’t have to deal with providing two pieces of identification or waiting for check approval.

Maintaining good records is another major plus that comes from using a small business debit card. When you use the card each and every transaction appears on your statement so you can easily track your business expenses which make it a lot easier on your bookkeeper too!

Finally, a business debit card also has all the advantages of an ATM card so you can make cash withdrawals at thousands of locations. When you apply for your debit card the bank will issue a personal identification number (PIN) to help protect the account and prevent unauthorized use.

Even though using a business check card does not build your business credit files it does play a key role in your bank credit and banking history. So use your debit card responsibly and avoid mismanaging your account at all costs.

Ready to start building bank credit and 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 premium vendors, business credit cards, 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. A business credit building program helping business owners establish business credit. He is a business credit blogger for AllBusiness.com, 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. 

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