In earlier times it used to be quite easy for a small business owner to secure 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 giving small business credit cards. In some instances the credit rating of the business owner needs to be looked at and if you’ve got a poor credit rating the bank will turn you down. Even so there are a number of other choices which business owners could resort to acquire a credit line for their businesses even with bad credit.
If you try to acquire a small business credit card from the bank that you do business with and get denied you can seek approval from smaller banks who’ll consider options in alternative to your credit rating. Though it could have gone unnoticed your business might have built up a credit rating on its own based on credit cards that you have in the business name, payment history for bill payments, on time payments to vendors as well as other factors. If your company has built up a favorable credit rating you’ll definitely are eligble for some small business credit cards.
If you fail to obtain the credit cards from small banks or are not thrilled by the programs supplied it’s possible to turn to loan companies online that are willing to supply small business credit cards for bad credit consumers. The interest rates will be high to begin with but you can avoid them if you pay off your account balance prior to the end of the grace period. Furthermore many of them might be willing to lower the interest rates on small business credit cards so long as you make your payments on time.
Small business credit cards go a long way in helping business owners pay bills or cover unexpected business expenses which so often develop in small businesses. The benefits offered with the programs are also a big help to these up and coming businesses. The rewards can offer discounts on necessary business expenditures but these benefits come with a price; the high interest rates and annual fees that you will be expected to pay. Avoid the fees as much as you possibly can to obtain the advantages of the rewards.
If you are not concerned with the rewards but simply require a line of credit for your business you can sign up for a home equity loan if your credit doesn’t qualify you for small business credit cards. If you use your home as collateral you might be able to get a line of credit with a lower interest rate than credit cards.
With some work it will be possible to obtain a small business credit card for your business from loan companies that are prepared to extend them to business owners with bad credit. This can be a pleasant relief to fulfill your expenses within this challenging economy and with the rewards you can reap substantial savings for your business.
It is important that you examine the programs and the interest rates that exist and choose the one with the best possible balance of fees and rewards for an individual with bad credit. When you are accepted pay on time to be entitled to much better programs with lower interest rates.