In earlier times it would have been quite simple for a small business owner to get a small business credit card simply by requesting it from the bank that they did business with. With the economy as it is today banks are not prepared to issue small business credit cards as quickly as they did before. From time to time the credit score of the business owner is evaluated before extending the credit card and if your credit is bad then there's a strong possibility that you won't be approved for the card. Luckily there are still a few options for getting small business credit cards even if your credit is not the best.
If the bank which you do business with turns you down for a small business credit card it's possible to consider the option of smaller banks that might be prepared to take factors besides your credit score into account. You may not be aware of it but your business may have established a reliable credit score on its own based on other credit cards that you might have in the business name, loans that you may have obtained and payment history for bills and other expenses. If your company has a good credit rating you will be in a position to get a small business credit card.
If the smaller banks turn down your application or perhaps you were not in awe of their programs you could consider lenders that specialize in providing small business credit cards to businesses with bad credit. Count on paying higher interest rates if you are accepted into their programs but a lot of them will lower the rates if you establish a reputation for prompt payments. You can also avoid the extreme rates of interest if you pay off your account balance before the conclusion of the grace period.
Small business credit cards are perfect if you want a line of credit to pay for your bills and satisfy unpredicted business expenses usually connected with small businesses. Many of them include reward programs where you can obtain a few rewards for your business purchases. Again these rewards include a price as you will pay higher interest rates and a yearly fee to have access to these rewards.
If rewards aren't the key issue in your mind and you want a line of credit for your business then you can take a look at a home equity loan if you didn't qualify for small business credit cards. Using your home as your collateral it will be possible to secure a loan at a lower interest rate than you would get with major credit cards.
With some work you will be able to get a small business credit card for your business from lenders who're prepared to extend them to business owners with bad credit. This is often a welcome relief to meet your expenses in this challenging economic climate and with the rewards you'll be able to reap considerable savings for your business.
It's important for you to assess the programs and the rates of interest that are offered and select the one with the very best balance of fees and rewards for someone with bad credit. When you are approved pay punctually to be eligible for a much better programs with lower rates of interest.
