If you are a small business owner looking to use an unsecured business credit card to fund your endeavors, you may run into trouble if you have poor credit. That’s because business card companies demand good to excellent credit and lack provisions for co-signers. You can work toward improving your credit, but that can take time, and if you start with no credit, it can take a year or more to build it up.
Additionally, if your business is hurting and you have limited capital or revenue, adding credit card debt could push you to the tipping point. The Revenued Business Card is an alternative financing solution created to help businesses like yours succeed. We offer access to capital based on your sales record, not your FICO score.
If you’re considering applying for the Revenued Business Card, first determine your eligibility. Look at the following factors to increase your chances of qualifying for the Revenued Business Card.
Ensure Your Business Is Based in the U.S.
A U.S. entity is a company incorporated in the U.S. — or unincorporated with its principal place of business in the U.S. You would need to have a U.S. street address for legal service of process and tax matters and an employer identification number (EIN) issued by the IRS.
For example, if you have a business incorporated in the U.S. but are wholly owned by a company in the United Kingdom, it could be considered a U.K.-based business. You would need to move central operations to the U.S. to be eligible for the Revenued Card.
Know Your Sales Numbers
Because the Revenued Business Card is not a credit card, our underwriters look primarily at your sales figures, and you must have at least $10,000 in sales per month to qualify for a card.
If you are hovering under $10,000, consider these tips:
- Nurture your loyal relationships — Listen to your customers’ needs, understand their pain points, and do your best to solve as many of them as you can.
- Leverage the internet — Social media and networking sites allow you to reach a more extensive customer base for little money. Make sure your website is ranking on Google and other search engines by creating informative content with strong SEO (search engine optimization).
- Measure your efforts — You are a small business, so time and money are limited. Therefore, pick the marketing efforts you invest the most in and measure those. Track your sales success with key performance indicators (KPIs) like revenue, cash activity, and customer retention.
Set Up a Business Bank Account
Opening a business account is essential for your taxes, tracking expenses, managing employee pay, and increasing your chances of qualifying for the Revenued Business Card. Here are ideas for establishing a business account:
- Decide on the accounts you may need — Depending on the depth of your business, you may find it easier at tax time to have different accounts for different finances. For example, you might find it beneficial to set up separate accounts for income, payroll, and taxes.
- Ensure your paperwork is in order — Before you head to the bank or credit union, understand their requirements and any paperwork they need. If you are a sole proprietor, you will probably only need your social security and tax identification numbers. If you are an S- or C-corporation, you will need to provide articles of incorporation.
Once your business bank account is set up, your Revenued Business Card merchant account can be established.
Monitor Your Bank Account Balance
To improve your chances of getting and maintaining the Revenued Business Card, you must maintain an average daily bank account balance of at least $1,000.
An average daily balance allows you to drop below the minimum for a short time. Your account records will be recorded at the end of each business day. At the close of your statement cycle, Revenued will average those balances by adding them and dividing that number by the number of days in the statement cycle.
Keep an eye on bank fees like overdraft or non-sufficient fund charges, which can add up to around $35 on average. Your bank may offer ways to avoid monthly costs. Take advantage of offers like paperless statements, direct deposits, or using online services to reduce charges.
Keep Your Bank Account Positive
If your business relies on invoice-based payments, your bank balance might go negative while waiting for the money to land in your account. As long as your account doesn’t slip into the red more than three days in a month, you are golden to qualify for the Revenued Business Card. Ways to improve your chances:
- Create a budget — To stay out of the red, make sure there is more money coming in than going out. To help you monitor your cash flow, draw up a budget with your earnings in one column, and expenses in another. Creating a budget helps you exercise effective cash management and ensures you know where you stand regarding cash flow.
- Keep spending in check —Make sure you are only purchasing items necessary to keep your business running smoothly and grow your business. When you receive the Revenued Card, you can track how you spend your funds and monitor your daily spend limit through the merchant portal online or via the mobile app.
- Boost your cash flow — Identifying ways to increase cash flow will create a financial cushion to keep your business from slipping into negative territory. Purchase supplies in bulk or identify places to raise prices without overcharging your clients.
Stay Operational for at Least Six Months
To obtain a Revenued Business Card, you need to be in business for at least six months. The tips we have given above will help you make it to the half-year benchmark. Making it another six years is more of a challenge, but you can do if you:
- Establish realistic financial goals
- Put your customers first
- Learn to manage your cash flow
- Keep your expenses low
- Make mistakes
- Learn from your mistakes and move on
Revenued Cares About Your Business, Not Your FICO Score
Be sure to do the things listed above to increase your chances of qualifying. Once you are approved and start using the new Revenued Business Card, you will wonder how you ever did business without it. To find out if you qualify, complete our online form or call (855) 943-5363.
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