Unsecured Business Credit Card
See our picks for the best cards some with limits as high as 25 000.
Unsecured business credit card. A non traditional business line of credit is in the form of a business credit card which you can use for purchases or cash withdrawals from an atm. In contrast secured credit cards require a deposit of at least 200 300 and the deposit amount becomes the account s spending limit. Secured business credit cards are an effective solution for many business owners because they usually have higher approval odds than unsecured cards. We compared popular secured cards to see which.
Although going all in on a small business loan can be a big step that not every company is willing to make a business credit card is a smart decision for almost all small businesses that. A business owner can obtain funds for financing a start up business to pay a franchise fee to purchase equipment or for. Remember just because a business credit card has your company s name on it doesn t mean it s a true business credit card. A secured business credit card can help you build your business credit scores.
If your credit is fair or poor qualifying for this type of card will be. You have a credit limit you spend up to that limit and then you pay back your balance. If you have excellent or good personal credit you probably can get an unsecured business credit card even if your business does not have its own credit profile yet. Unsecured business credit cards require no personal guarantee.
In my opinion these cards are the worst type of cards to acquire as a business owner because your company s revolving unsecured debts show up only on your personal credit and it does nothing to build your business credit reports. An unsecured credit card is a credit card with a credit line that is not secured by collateral such as a refundable security deposit. Unsecured credit card financing is an alternative to an unsecured bank loan or an sba loan. If you re diligent about paying your bills on time an unsecured business credit card can be a cost effective financing tool for your business.
While both types of lines are unsecured and offer the flexibility we want one of. With no money down an unsecured business credit card can provide short term funding that frees up thousands of dollars in cash flow.