A business credit card is a necessary financial tool for any company. If you are looking to buy equipment, meet operating expenses, or make repairs, a business card is probably one of the first places you might turn.
However, if you run a small or medium-sized business, you know it can be challenging to qualify for credit or get funding. The length of time your firm has been operating or poor personal credit can prevent you from getting a business card.
Even if you manage to get funding, you may be over-leveraged and wary of taking on additional debt. You might look into a merchant cash advance (MCA), but the high cost could make you think twice about it.
Another possibility is a card that provides you with the flexibility and convenience of a credit card but with marked distinctions. Unlike anything else out there, let’s look at the difference between the Revenued Business Card and other business cards.
Qualifying for a Business Card
To qualify for most business cards, especially when it comes to newer companies without adequate revenue history, you will need to offer personal guarantees based on your consumer credit score and other income sources. Your credit report will be pulled in the approval process, and the inquiry could negatively impact your credit score.
In fact, according to the 2019 Federal Reserve’s Employer Firms Report, a majority of business credit applicants depend on their personal finances to meet fiduciary requirements.
- Personal credit scores — 86% needed to include or depend entirely on their personal credit score to qualify.
- Personal guarantee — 58% had to make a personal guarantee to obtain financing for their business.
- Personal assets — 31% put up personal assets as collateral for the business debt.
You might qualify for a secured business credit card instead, which would allow you to build credit and possibly acquire credit cards with better terms down the road. However, secure cards require a deposit that acts as collateral, so that may not be an option if your business is short on funds. Additionally, your credit limit is only as high as your deposit so that you could be left without the spending power you need when opportunities arise.
If your personal financial situation is not strong enough to support your business card application, most banks will probably deny your credit request. According to the Federal Reserve survey, the top four reasons for business credit denial are:
- Credit scores too low
- Personal and business debt levels already too high
- Not enough collateral
- Insufficient credit history
These factors are not even a part of the equation when you apply for a Revenued Business Card.
The Revenued Business Card Difference
Many small business owners find it challenging to acquire enough money to meet a growing company’s requirements. According to the Federal Reserve’s report, fifty-two percent of employer firms utilize credit cards as a source of outside funding for their companies.
Many start-up founders are recent grads, are new to the U.S. with little to no credit history, or have maxed out credit lines trying to get the company up and running. Obtaining a business card or a credit line becomes out of the question. The reason? Most business card underwriters consider a business owner’s credit score and personal guarantee before granting money.
This is one of the main differences between the Revenued Business Card and other business cards. Its funding amount limits are based mainly on your firm’s cash flow. Your FICO score and credit history have no bearing on qualification. Come to us with a subprime credit history, and you’ll still walk away with funding. Your business is usually eligible for the Revenued Business card as long as it maintains an average daily bank account of $1,000 and performs a minimum of $10,000 per month in sales.
Moreover, your company must:
- Be U.S.-based.
- Have been operational for at least six months.
- Not be operating out of a personal account. You must have a business account.
- Not have a negative balance for more than three days in a month.
Types of Business Cards
Let’s look at the different types of business cards available.
Business credit cards are considered revolving credit accounts and allow cardholders to hold a balance over time. To keep the card current and in good standing, you must make a minimum monthly payment.
Business credit card features:
- Affects credit utilization ratio
- Can be issued to applicants with moderate credit scores
- Used to build a credit history
- Strict spending limit
Charge cards are required to be paid off each month. There are usually no preset spending limits, and business owners are supposed to pay off their balances prior to the close of each billing cycle or the next one.
Charge card features:
- Does not affect credit utilization ratio
- You must have good to excellent credit to qualify
- Can be used to build credit history
- No spending limit
The Revenued Business Card is unique because its funding model is adjustable enough to underwrite businesses in any industry with limited revenue, operating history, or profitability.
The Revenued Card features:
- Does not affect credit utilization ratio
- You can have subprime credit to qualify
- It doesn’t require a personal guarantee
- The Revenued Card usually has a higher funding limit than your personal card and can deliver more funds at a lower cost than other alternative financing options.
Using your Revenued Business Card is simple. Shortly after being approved, you will receive a card number you can use to access your cash. Use your Revenued Card in place of a credit card or debit card to cover business expenses and bills.
Experience the Revenued Business Card Difference
Traditional business cards are often not an option for many business owners like you. A low credit score or lack of credit history can prevent you from getting a card; however, the Revenued Card is different. We understand that poor credit does not reflect who you are as a person and should not prevent you from having access to the money you need to grow your company.
Experience the difference and start your application today by calling +1 (877) 662-3489 or email at [email protected] form for additional details.
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