Whether it’s a loan, a business credit card, a line of credit, or alternative financing, it’s vital to ensure the funding option you select aligns with your business’s goals and remedies its financial pain points. Your company may be struggling, but that doesn’t mean it should have to pay exorbitant interest rates or finance charges.
Many predatory companies take advantage of struggling companies with self-serving disclosures, hidden fees, and lock-ins. Understanding the options out there and choosing an uncomplicated funding product with fair pricing and transparent terms can save you a lot of heartache in the long term.
Let’s look at the Revenued Card and some other funding options on the market and how they may or may not work for your business. Then you will better know how to answer the question, “Is the Revenued Business Card right for my company?”
Methods of Financing
In the pursuit of securing funds to shore up your bottom line, you have likely run into one of the following financing methods: merchant cash advance (MCA), unsecured credit card, and secured credit card. All share traits with the Revenued Card but are different in crucial ways.
Merchant Cash Advance (MCA)
An MCA is a cash advance of your company’s future revenue. When your business demonstrates steady sales, a portion of your future sales can be bought by an MCA provider at a discount. The MCA provider takes in a percentage of each debit and credit card transaction while you receive a lump sum of cash upfront. The provider continues taking a cut of your transactions until the advance receivables purchased are returned at the agreed-upon rate.
Yet the payments for an MCA can be higher than for other funding products. Additionally, you are required to start paying for your MCA funds as soon as they hit your account — whether or not you are using them. If you are not ready to spend when the money is deposited, this option could be unnecessarily expensive.
Unsecured Credit Card
Most business credit cards are unsecured, which means the lender does not require you or your company to put up assets as collateral. This is a riskier arrangement for the card-issuing company since it is costly to recover the funds if you rack up debt and walk away without paying.
Because of this additional exposure, credit card issuers typically require strong credit history and a relatively high score to open the account.
Secured Credit Card
Secured credit card companies require a security deposit to open an account. The card issuer places this security deposit into a separate account and extends the cardholder a credit line up to the deposit amount. If the cardholder defaults on their agreed-upon payments, the issuer can use the security deposit to cover their losses.
You may discover that secured credit cards are not right for your company. They can charge higher-than-average interest rates, require cash as collateral, and they often come with application fees, annual fees, and additional “processing” fees.
Reasons the Revenued Card Is Right for Your Company
The Revenued Business Card includes many of the same benefits as the financing methods detailed above — without the drawbacks. Revenued Card advantages include:
- Approval for subprime borrowers — You don’t need stellar credit to be eligible for the Revenued Card. For example, whereas the Spark Card requires a minimum personal credit score of 630 to qualify, Revenued can approve you with credit scores below 600
- We aren’t concerned with your FICO — As long as you have the necessary cash flow to sustain our card, we don’t look at your FICO score.
- No charge until you use the funds — Unlike an MCA, you control when and how much of the available financing you need to use. There is no cost for the untapped portion of your spending limit, and you only pay for what you need.
- No upfront cash deposit — If cash flow is restricted, you probably don’t have the extra funds to set aside for a secured card. With the Revenued Card, you don’t need a security deposit.
- Convenient payment card — Like a credit card or secured card, you will receive a physical card that can be used to pay online or brick and mortar retailers or suppliers with credit card processing capabilities.
- Cash draw option — When a card won’t work, and you need cold hard cash, you have the choice to make a cash draw through your mobile app or online portal.
- Online merchant portal — Receive access to your account 24 hours a day. Here you can review your daily balance, check your daily payment schedule, request a spending limit increase, and more.
How the Revenued Business Card Works
First, fill out our step-by-step online application — within minutes you will know if you qualify, and you may be fully approved the next day. Once you sign the documents and the terms are finalized, you will be given a business card you can use as a debit or credit card for company expenditures.
Your agreed-upon factor rate and spending limit are set based on your sales and banking activity. Borrowing cost calculations are always transparent and trouble-free, so you can use your card with confidence, knowing you won’t be blindsided with hidden fees or prohibitive lock-ins.
If business picks up and you don’t use your card, you will not be charged for the unused portions of your spending limit.
The Revenued Business Card Is Right for Your Company
With financial institutions maintaining a tight grip on their purse strings, business owners find it challenging to acquire the funds they need to keep their companies growing.
According to the Small Business Administration (SBA), small firms with poor credit struggle the most. Twenty percent of applicants for small business loans are turned down due to poor business credit.
The Revenued Business Card is the right solution for your company. As long as your business has $10,000 in monthly sales, has been operational at least six months, can keep $1,000 in its associated business bank account, and maintain a positive bank balance, you can qualify.
To discover if you qualify for the new Revenued Business Card, fill out our online form or call (855) 943-5363.
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