Business Credit Card

Though not necessarily a “loan” in the traditional sense, a business credit card can help you obtain financing without the hefty process of loan approval.

Business credit cards are a popular choice among entrepreneurs who have limited business history and don’t qualify for lower-cost financing, such as bank lines of credit. 65% of small businesses use them on a regular basis. Business credit cards, like personal credit cards, provide a revolving line of credit that you use for business expenses. A business credit card should not be tied to your personal credit – because maxing out personal credit cards for business expenses can kill your personal credit scores. But if you pay your bills on time, business credit cards can actually help build your business credit profile. Most major credit card companies provide business credit card options.

The required credit score will vary based on the company extending the credit card, so you may be able to find a business credit card that will work with your current credit situation. If you are not in position to qualify for a business credit card, you can look into getting a secured credit card that requires a deposit or collateral up front. In most cases, this deposit must be made in cash, although some lenders will accept collateral in the form of homes or cars. A secured credit card or secured business credit card can be a valuable tool to build and repair your credit.

Features: 
  • Less stringent approval criteria
  • Quick turnaround time
  • Rewards like cash back or 0% intro. interest rate
  • Interest paid may be tax deductible (unlike personal cards)
  • May help build business credit score
  • Can use for any business need
  • No collateral required
Things to consider: 
  • Higher interest rates than bank credit lines (13% – 25%)
  • Variable interest rates could move higher
  • May have annual fee
  • Limited funding amount (max usually $20,000)
Credit Score Requirements: 
Good
Annual Interest Rates: 
13% – 25 %
Turnaround Time: 
1 – 3 weeks

Loan amounts

Loan range: 
$250-$250 000