Here’s Why You Might Need One
A secured business credit card has many advantages for you as a small business owner or self-employed person. A business secured credit card is a credit card account where you put up matching funds into your account-in other words, a secured business credit card is pretty much a debit card, but you get to build your credit rating with it.
More specifically, a business secured credit card is like a debit card that enables you to build up your business’ credit rating. This can be very important to your business.
You want your business to show off good credit in order to attract more clients (and possibly potential investors). You also may need business loans in the future, and with good business credit you’re more likely to get them, higher limits on them, and lower interest rates.
If you have started up a small business and you have some employees, you can give a secured business credit card to each one of them if you so desire. Of course, you’ll want them to be trustworthy and responsible with their cards’ usage but once again permitting each one to use a business secured credit card helps your business establish its credit for future benefits.
It also can help your employees be more productive. For instance, a secured business credit card in the wallet of each of your salesmen could mean more business “power lunches” with prospects to help “wow” them and secure more sales.
Having a company secured credit card can also save you a great deal of money on supplies. Finding wholesale suppliers for your business’ supplies on the Internet is nearly always the cheapest way to go, and the vast majority of these suppliers won’t accept payments by any other method except a credit or debit card.
You’ll find a similar situation in the case of vital equipment breakdown. Imagine if your computer got sizzled. You’ll need to immediately purchase a new one or rent one while yours gets repaired (which you will also have to pay for). Your secured business credit card is what you’ll want in that situation.
Likewise if something urgent or unexpected comes up travel-wise and you suddenly find yourself needing to rent a car or purchase an airline or train ticket. The business secured credit card is your ideal choice here.
We’ve talked now as if you just started up a business recently, but what if you’ve had business misfortunes or failures in the past? You can forget about getting an unsecured business credit card, for now. But anyone who’s not a felon can get a secured business credit card. With this you can overcome past black marks, make your current business look better, and of course re-establish credit so that you can one day get more lines of unsecured credit for your business.
The most important thing for you to do as you look for a secured business credit card to go with is, as you might have imagined already, the fee structure. Look carefully at any application fees, initial cost fees, and APR. In addition to looking carefully at the fees, look at competing rewards systems.
Some lenders are going to cater more to those seeking a business secured credit card than others are. As with your own industry and any industry, lending banks compete. The simple truth is that unsecured credit cards get the vast majority of lenders’ marketing business-they make more money from these. However, there are smart, highly competitive lenders who believe that if they offer you a good secured business credit card, down the road they’ll get other, more lucrative business from you.
You also need to look into whether or not the issuer of the card reports to major US credit bureaus. This factor is another important one.
Most of the issuers of these secured business credit card offers want your attached savings account to equal 100% of your credit limit. But, in certain situations, some might demand that you put in more than your credit limit. This is yet another factor for you to consider.
If you have a business of your own, get yourself a secured business credit card. Build your credit, secure your business future.