If you have bad credit and are trying to run a business, you may be starting to feel the walls closing in. That’s because it can be hard to find business funding with bad credit. For sure it’s not easy to get a loan. It can even be difficult to access business cards for bad credit. Is it even possible to find business cards for bad credit?
It is possible to get business cards for bad credit. The problem is, there are not a lot of them out there. Not only that, but those that are available don’t have the best rates or terms, and credit limits may be quite low. The result is, you could end up in worse shape than you are now. The question then becomes, how do you meet your business goals with bad credit, period. Forget about finding business cards for bad credit, how do you fund your business at all if your credit is bad?
It Is Possible, but You Need Expert Help
Here’s the thing. Before you can find business cards for bad credit or any other funding, you need to understand your goals, what funding is available to help you meet those goals currently, and how to improve credit so that more options are available.
Most options you can access yourself, but in the time it takes to do so your business could implode. It is far more effective and efficient to seek the help of a business credit expert who can help you navigate the business credit landscape. But, first thing’s first. If you are looking for business credit cards that you can get with bad credit, here you go.
Brex Card for Startups
The Brex card for startups is one of the few true options if you are looking for business cards for bad credit. Even a FICO as low as 300 may qualify. There is no annual fee, and you can apply with your EIN rather than your SSN. There is no personal guarantee requirement.
The only catch is, not all industries qualify, and some industries require more paperwork than others.
Wondering how they are able to verify creditworthiness if a business has bad credit? They look at the business’s cash balance, spending patterns, and investors.
Not only can you get this card with bad credit, but they even offer rewards. For example you can get 7x points on rideshare and 4x on travel. Likewise, get triple points on restaurants and double points on recurring software costs. Get 1x points on everything else.
Capital One Spark Classic for Business
If you have fair credit, you may be able to get the Capital One® Spark® Classic for Business. It also has no annual fee, but there is no introductory APR deal. The regular APR is a variable 26.99%. In addition, you can earn unlimited 1% cash back on every purchase for your company, with no minimum to redeem.
While this card is available if you have fair credit scores, beware of the APR. If you can’t pay on time and in full, skip it.
You See The Problem?
You see the problem here. This is only 2 cards. There may be more out there, but they are few and far between. It is virtually impossible to access all the funding you need to meet business goals with just 2 credit cards. You need to know your other options for funding your business if you have bad credit, and how to improve credit so you can access more options.
Even better would be to access more options and build your business credit at the same time. That is exactly what a business credit expert can help you do.
Why Can’t I Do it Myself?
It’s true, you can apply for a business credit card with bad credit on your own. As a business owner, you are perfectly capable of filling out a credit card application. However, with a business credit expert, you can supply your information one time and let them find options for you that you didn’t even know were in existence.
This will include not only credit cards, but other options as well. With just a little information on your business and assets, a consultation with a business credit expert could get you on track to not only funding your goals, but building credit and fundability so that you can get even more money for your business.
Of course, it’s possible you can find these options for yourself as well. However, the time it takes to figure out which one you qualify to get, whether they are right for your business, and whether they will actually help you meet your goals, is substantial. In that time, a lot of money can be lost from your business. In fact, you could lose the business itself.
What Are These Other Options?
So, say you employ the help of an expert. What can they actually help you with. Well, first, they will help figure out what options you have right now, even with bad credit. The main goal is to help you meet your business goals and build your credit at the same time. One of the fastest, easiest, and most effective ways to do this is the credit line hybrid.
Credit Line Hybrid
A credit line hybrid is unsecured business financing. It allows you to fund your business without putting up collateral, and you only pay back what you use.
It is not as hard to qualify as you may think. You do need good personal credit. That is, your personal credit score should be at least 680. In addition, you can’t have any liens, judgments, bankruptcies or late payments. Furthermore, in the past 6 months you should have less than 4 credit inquiries, and you should have less than a 45% balance on all business and personal credit cards. It’s also preferred that you have established business credit as well as personal credit.
How does this relate to getting business funding with bad credit? Here’s the secret. If you do not meet all of the requirements, you can take on a credit partner that meets each of these requirements. Many business owners work with a friend or relative to fund their business. If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding.
The best part of this type of funding is that it reports to your business credit report, regardless of whether you use your personal credit to apply or that of a credit partner. That means, you get your funding and build your business credit at the same time.
If this still isn’t enough funding, there may be even more options for accessing funding funds with bad credit, depending on your specific business.
Account Receivable Financing
To get this type of funding, you have to have open receivables from another business or government agency, not individuals. In addition, you need to have been in business for at least one year. The minimum credit score is just 500.
You can get up to 80% of receivables advanced in as little as 24 hours.
Merchant Cash Advance
If you accept credit cards as payment, you may qualify for a merchant cash advance. You only need a credit score of at least 500. To qualify, your business must bring in $100,000 or more per year in credit card sales. Typical approval amounts equal one months’ credit processing volume. In addition to the application, you’ll need 3-6 months bank and merchant statements.
Business Revenue Lending
Another option is business revenue lending. Again, the minimum credit score is 500. Your business must earn annual revenue of $120,000 or more, and it must do more than 5 small transactions each month. If your business brings in at least $15,000 monthly, then 6 months in business is acceptable. You will have to fill out an application and provide 6 months worth of bank statements.
Don’t Let Your Bad Credit Hold Back your Business
You can find business cards for bad credit. It is possible. Not only that, there are other options for business funding with bad credit. Bad credit doesn’t have to stop you, but you shouldn’t let it ride either. You need to work to improve it. It will help you improve your business in the future.
A business credit expert can help you not only find business cards for bad credit, but they can help you find and get approved for these other options as well. At the same time, they can work with you to build your business’s fundability and business credit, so that you can run and grow your business like you want.