Before it used to be much simpler for a small business owner to obtain a small business credit card if he requested it from the bank he did business with. In today’s economy banks are holding fast to strict guidelines when it comes to issuing small business credit cards. In some instances the credit rating of the business owner must be looked at and if you have a poor credit rating the bank will turn you down. Even so there are a variety of other options which business owners can turn to get a credit line for their businesses even with bad credit.
If you attempt to obtain a small business credit card from the bank that you do business with and get rejected it is possible to seek acceptance from smaller banks who’ll think about options in alternative to your credit score. Although it may have gone unnoticed your business might have accumulated a credit rating by itself based on credit cards that you have in the business name, payment history for bill payments, on time payments to vendors and other factors. If your company has built up a good credit rating you will definitely are eligble for some small business credit cards.
If the smaller banks turn down your application or maybe you weren’t impressed by their programs you could turn to lenders that focus on providing small business credit cards to businesses with bad credit. Expect to pay higher interest rates if you’re accepted into their programs but many of them will lesser the rates if you develop a reputation for timely payments. You can also avoid the excessive rates of interest if you pay off your account balance before the end of the grace period.
Small business credit cards go a long way in helping business owners pay bills or pay unanticipated business expenses that so often develop in small businesses. The incentives provided with the programs are also a big help to these up and coming businesses. The rewards can provide discounts on necessary business expenditures however these rewards have a price; the high interest rates and annual fees that you’ll be expected to pay. Avoid the fees as much as you possibly can to obtain the advantages of the rewards.
If rewards aren’t the main issue in your mind and you need a line of credit for your business then you can examine a home equity loan if you didn’t qualify for small business credit cards. Using your home as your collateral it will be possible to get a loan at a lower rate of interest than you would obtain with major credit cards.
If you spend time looking into your options it will be possible to obtain a small business credit card from loan companies who will extend the service to business owners with credit that’s less than desirable. This will help you to meet your business expenses in a tough economy and reap a few rewards while you do so.
Be prepared to take the time and examine the programs along with the rates of interest and fees that they charge so that you get the best possible deal that won’t amount to a fortune or place you in financial hardships at a later time.