What Types of Business Credit Cards are available?

As a small business owner, it can be quite a challenge deciding what the best type of business credit card to get for your business. When looking for the best types of cards for your business, you will first want to know about the different types that are available today.

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

A Secured Business Credit Card is specifically designed for businesses with no credit or less than perfect credit history and is very similar to prepaid cards. An initial security deposit is required which establishes your card’s credit limit. In most cases a minimum deposit of $500 is required by the card issuer. The bank then holds your deposit as security in the event you fail to pay your credit card bill. Once you begin making purchases you will receive invoices like a regular credit card.

An Unsecured Business Credit Card works just like a normal, revolving, unsecured consumer credit card. 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. These credit cards give your business the opportunity to earn incentives and rewards.

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.

If you plan on paying your balance off each month, a card offering travel mile rewards or cash back bonuses may be the best business credit cards; however, if you plan on maintaining an ongoing balance, a low introductory or standard APR might be a better option.

Remember, just because a card issuer offers all kinds of perks and rewards doesn’t mean it’s necessarily the best card. Always read the fine print so you completely understand the terms and conditions and fees associated with the card.

One of the most important factors in deciding on business credit cards, is to absolutely know that you WILL be building your business credit with these creditors. 90% of business creditors DON’T report to the bureaus, therefore, you’re not building your business credit!

It’s also important to note that even though business credit cards are not covered under the CARD Act, certain issuers are extending the CARD Act protections to its card holders. This is just another factor to consider when applying for a business credit card for your business.

Expert Credit Consultants, LLC specializes in establishing business credit and funding using our exclusive Business Credit and Financing Suite as well as consumer credit restoration and optimization. www.ExpertCreditConsultants.com.

Top 5 Business Credit Benefits

Imagine having the ability to access $50,000, $100,000, even $250,000 for your business. Now imagine doing this with NO personal credit check and NO personal guarantee.

Your success in business will more than likely be determined based on your business credit profile and score. With a good business credit profile you will have near unlimited borrowing power – unlike personal credit.

Without having a good business credit profile it will be a difficult path to success without having access to working capital and funding. This is why almost all Fortune 500 companies use their business credit to secure funding. It's not that they need the money to operate. Successful companies use funding as leverage to grow their business.

Business Credit is the best kept secret in business. Over 90% of all business owners know nothing about business credit or business credit scores. But when you do discover the power of what business credit can do for you and your business you will be floored at how easy it is to get money and grow your business.

1-One of the many benefits of business credit is that you can obtain funding with no personal credit check. With a strong business credit profile, lenders will lend you money based on your business credit, not your personal credit.

This is excellent if you have personal credit issues as you can still qualify for funding. Even with exceptional personal credit, business credit gives you DOUBLE the borrowing power.

2-You can get approved for much higher funding amounts using your business credit than you would if you used your personal credit to qualify.

3-Another great benefit of business credit is there is no personal guarantee required for much of the funding you obtain. This means you can be approved with no personal liability.

So if you ever do default, the creditor can't pursue your personal assets like your home or personal bank accounts.

4-Business credit adds more value to your business and gives your business credibility. Stakeholders, partners, lenders, even potential buyers of your business will see more value in your business if you have a strong business credit profile established.

5-Most importantly, by having a good business credit profile, you have security. It is much easier to run your business when working capital is easy to come by. Any business with a $150,000 credit line available will have a much better chance of growth than if $0 was available.

Through the Business Credit and Finance Suite, you will be able to secure well over $50,000 in business credit within months.

There is no excuse for not getting the funding you need. But you need to position your business for funding BEFORE you really need funding.

Expert Credit Consultants, LLC specializes in establishing business credit and funding using our exclusive Business Credit and Financing Suite as well as consumer credit restoration and optimization. www.ExpertCreditConsultants.com.