Unsecured Small Business Credit Cards for Your Business
Did you know that unsecured small business credit cards can be yours? But first let’s talk about business credit lines.
What’s a Credit Line?
A credit line, or line of credit (LOC), is an arrangement between a bank or private investor that sets a maximum loan balance which a borrower can access.
A borrower can access funds from their line of credit any time, provided they don’t exceed the maximum set in the agreement. And this is also as long as they meet all other requirements of the bank or investor like making prompt payments.
Benefits
Credit lines provide many unique benefits to borrowers such as flexibility. Borrowers can employ their line of credit and only pay interest on what they use, compared to loans where they pay interest on the total borrowed.
Credit lines can be re-used, so as you acquire a balance and pay that balance off, you can use that accessible credit again, and again.
Credit lines are revolving accounts similar to credit cards, and contrast other types of funding including installment loans. In many cases, lines of credit are unsecured, much the same as credit cards are.
There are some credit lines that are secured, and because of this easier to get approval for
Popularity
Credit lines are the most typically requested loan type in the business world. And although they are preferred, authentic credit lines are unusual, and hard to find. Many are also very difficult to get approval for calling for good credit, good time in business, and good financials.
But there are other credit cards and lines which few know about that are available for startup companies, poor credit, as well as if you have no financials.
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Unsecured Small Business Credit Cards and Lines are Very Similar
Credit cards often offer 0% intro rates for up to two years. So they are very helpful for startups especially. Credit lines allow you to take out more cash at a more affordable rate than do cards. These are the main two differences which will affect you between credit cards and credit line.
Investopedia even says that, “lines of credit are potentially useful hybrids of credit cards.”
Both cards and lines are revolving credit. Credit lines are tougher to qualify for as card approvals are generally very quick, many times automated, while line require an in-depth underwriting review.
Lines usually offer lower rates, per Bankrate card rates average 13% while lines average 4%.
Unsecured Small Business Credit Cards
Many of them report to the consumer credit reporting agencies. They all require a personal guarantee from you. You can get approval typically for one card max as they stop approving you when you have two or more inquiries on your report.
Most credit card companies offer business credit cards including Capital One, Chase, and American Express. These have rates much like consumer rates and limits are also similar.
Some of them report to the consumer reporting agencies, some report to the business bureaus. Approval requirements resemble consumer credit card accounts.
Inquiries
Primarily, when you apply for a credit card you put an inquiry on your consumer report. When other lenders see these, they will not approve you for more credit due to the fact that they do not know how much other new credit you have recently obtain.
So they’ll only approve you if you have less than two inquiries on your report within the most recent six months. Anymore will get you refused.
Get Unsecured Small Business Credit Cards with Our Credit Line Hybrid
Here, you deal with a lender who focuses on securing business credit cards. This is a very rare, only a few know of program which few lending sources offer. They can usually get you more approvals than you can get on your own.
This is because they are familiar with the sources to apply for, the order to apply, and can time their applications so the card issuers won’t reject you for the other card inquiries.
Results
The end result of their services is that you often get more cards. Multiple cards generate competition, and this means you can get your limits raised in most cases within 6 months or less of your original approval. Approvals can go up to $150,000 per entity for example, a corporation.
Not only will you get money, but you build your business credit as well. So, within a few months, you can then use your newly established business credit to get even more money.
Rates
The lender can also get you low introductory rates, often 0% for 6-18 months. You’ll then pay normal rates after that, typically 5-21% APR with 20-25% APR for cash advances. And they’ll also get you the very best cards for points.
So this means you get the best rewards. Much like with anything, there are HUGE benefits in teaming up with a source who concentrates on this area; the results will be better than if you try to go at it alone.
Qualifications for Unsecured Small Business Credit Cards
You have to have excellent personal credit right now, preferably 700 or higher scores, the same as with all business credit cards. You shouldn’t have any negative credit reported to get approval.
Guarantors for Unsecured Small Business Credit Cards are ALWAYS Welcome!
You can get approval making use of a guarantor and you can even use various guarantors to get even more money.
A Caveat
With all unsecured small business credit cards above, you should have good consumer credit in order to get approval but what happens if your personal credit isn’t good, and you don’t have a guarantor?
This is when building business credit makes a lot of sense even when you have good personal credit, establishing your business credit helps you get even more money, and without having a personal guarantee.
Get Unsecured Small Business Credit Cards Today
Company credit is credit in a company name, that’s associated with the business’s EIN number. When done correctly, you can get unsecured small business credit cards.
And you can get it with no personal credit check and no personal guarantee. So that’s a thing all other cards above just can’t deliver. You can get three types of company credit cards. The vendor credit offers net 30 terms used to start a business credit profile. With the retail credit tier, get credit cards with high limits at most retail stores.
Then with the bank and fleet credit tiers, get Visa, MasterCard, and American Express cards you can use anywhere. These may be acquired with no credit check or guarantee. Limits are oftentimes $5,000 – $10,000 to begin. And they can even exceed $50,000.
Your company can get credit cards and financing, if you know where to look. Check out how this will help your company get unsecured small business credit cards.
