If your business is saddled with high-interest credit card debt, you may look for another card to transfer your balance and provide yourself with breathing room.
While you can’t transfer your balance to your Revenued Business Card account, you can use it to make payments and reduce your debt. You can also access your funds through a cash draw, allowing you the flexibility to pay your obligations through your business bank account.
What Is a Balance Transfer?
A balance transfer is when the amount you owe on one account is paid using funds from another. It does not reduce your overall liability, but instead, it just moves the balance owed — ideally, to an account with better terms.
Typically, balance transfers occur between two business or consumer credit cards. Business credit card issuers sometimes offer low or 0% interest rates on balance transfers to entice you to make a transfer to them from your higher-interest cards. All you need to do is give them account information for your high-interest card, and they make the payment.
Why Can’t I Transfer My Credit Card Balance to My Revenued Card?
Used wisely, balance transfers can be a powerful financial management tool. Though, because the Revenued Card is not a credit card, it is not structured to receive debt of any kind. Even though it looks and spends like a credit or debit card, it is funded by your company’s future revenue.
Once you apply for the Revenued Business Card, our proprietary underwriting software analyzes your sales and banking activity to establish your spending limit. This limit is fixed but can be increased when you make a request through your merchant portal if your revenue can support it.
Despite not being able to make a traditional balance transfer, you can use your Revenued Card to reduce your high-interest debt.
Using the Revenued Card to Pay Down Balances
You can use the Revenued Business Card to pay off or reduce other balances — including credit card debt, loan principal and interest, or line of credit obligations. When you use your Revenued Card to pay these liabilities, you free up capital and improve your personal and business credit score by reducing your credit utilization ratio.
There are two ways to pay your debt obligations using your Revenued Business Card: through a direct payment or by making a cash draw and using those funds to pay your creditors.
You can utilize the Revenued Business Card to pay merchants and creditors that accept business card payments. If your creditor allows you to provide a card number to make your payments, you can use your 16-digit Revenued Card number.
This transaction reduces your credit card liability and increases your Revenued Card balance. Your factor rate will then apply to this unpaid balance. (Your factor rate is a decimal figure that typically ranges from 1.1 to 1.5. It shows how much the use of your Revenued card will cost.)
You also have the option to access your Revenued Business Card funds using a cash draw. Simply request a cash draw through your merchant portal or associated mobile app, and Revenued will deposit the money into your linked business bank account. Then, you can use your bank debit card or a paper check to spend it.
Use your funds for any business expense, giving you the flexibility to meet any pressing needs your company faces. For example, use the cash for payroll financing, to pay your vendors and service providers, or to reduce your business or personal credit card debt.
Revenued Card’s Transparent Costs and No Hidden Fees
Since the Revenued Business Card is not a credit card, it does not provide a way to initiate a credit card balance transfer. However, you can tap into your Revenued Card spending limit to pay your business creditors and reduce your credit utilization ratio.
With the Revenued Card, your cost is the same no matter how you access your funds. We don’t charge cash draw fees or increase your factor rate when you use your funds to pay down debt. That way, you know how much your funds will cost you, even before they hit your bank account.
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