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What is the Easiest Business Credit Card to Get?
The use of business credit cards can be a convenient way to get access to funding. The ability to increase purchasing power, withdraw cash, and have the flexibility to carry a balance makes it an extremely powerful financial tool. However, like any source of credit, it comes at a price and must be managed properly.
As a business owner you have probably received a fair share of credit card offers in the mail.
You may have even considered applying but couldn’t decide which type of card would be best suited for your business. As you know there are many types of business credit cards with various functions, features and benefits. Similar to a personal credit card, a business credit card has interest charges which you incur if you carry a balance after each billing cycle.
The set credit limits are based on the strength of your personal and business credit ratings. A major advantage with business credit cards is that you may acquire much larger credit limits compared to personal ones. This is especially important since your company may need to make large purchases for such things such as equipment or inventory.
Business Credit Card Advantages
Here are seven reasons why you should consider getting a small business credit card.
- Easier Approval - It can be easier for a business owner to get approved for unsecured business credit cards, as opposed to a traditional bank line of credit or small business loan.
- Flexibility – Business credit cards offer much greater flexibility then a term loan. Rather than fixed monthly payments a business owner has several options during each billing cycle.
- Financial Backup - A credit card for the business can provide you with a much-needed economic "pillow" when amounts owing are behind or sales are slow and also business is short on cash money.
- Online Purchases – Most business owners will need to make purchases online or pay invoices online with vendors, professionals as well as
suppliers. Using a business credit card allows a company to handle its online payment and purchase transactions.
- Financial Recordkeeping – On top of receiving a monthly statement, most company credit cards provide cardholders with online tools to manage their account, as well as a year-end account recap which could help an accountant track, categorize as well as take care of expenditures. It could simplify accounting and also provide a simple way to keep track of employee spending.
- Benefits & Rewards – Business credit cards provide a wide array of rewards and incentives such as discount rates, travel rewards, car rental discounts and more. Some cards offer cash back awards based on a percentage of the company’s purchases.
- Build Business Credit – With the right type of business credit card – meaning the card issuer reports to the business credit agencies - can be an excellent way to start establishing a favorable credit file for your business. That, in turn, can help you be more likely to get an additional credit line, and also at a possibly reduced rates of interest, in the future.
What is the easiest business credit card to get?
There basically two major types of business credit cards, secured and unsecured. With a secured business credit card your company is guaranteed approval since you are pledging collateral to secure the line in the form of a security deposit. With an unsecured card you’re approval will be primarily based on the strength of the personal guarantor and the company’s credit ratings.
With unsecured business credit cards the typical credit score range for pre-approval is in the 680+ range. Other factors that are taken into consideration are credit utilization ratios (preferably 50% or below), inquiries, new credit and length of history.
Before applying for a business credit card be sure to check your personal and business credit ratings and if your scores are low consider opening up a secured business credit card to start establishing positive business credit history.
Category: Business card