|
|
Like this article? PLEASE +1 it! |  |
|
Establishing Business Credit with a Secured Business Credit Card
| Guest post by: Marco Carbajo |
Article Overview: One of the best ways to start establishing business credit is with cards specifically designed for businesses with no credit or less than perfect credit history. Learn what type of credit you can apply for to start building your business credit today...
 |
Free Download - Building Business Credit is the Path to Your Company's Creditworthiness By Marco Carbajo |
Establishing Business Credit with a Secured Business Credit Card
Recently I posted how credit restoration is a viable strategy for small business owners in personal credit recovery. In addition to repairing your personal credit you should also focus on building and if necessary repairing your business credit as well. One of the best ways to start establishing business credit is through a secured business credit card. These types of credit cards are specifically designed for businesses with no credit or less than perfect credit history. When you apply you are required to submit a security deposit that will establish an initial credit line. In most cases a minimum deposit of $500-$1,000 is required and once you begin using your card you will receive invoices like a standard unsecured business credit card.
As you pay your invoices your payments will get reported to the business credit bureaus. I always encourage my members to use a secured business credit card along with vendor credit lines because it will allow youestablish a strong blend of account types on your files.
For example CSI offers a secured Business MasterCard that reports to Corporate Experian. They require a minimum of $1,000 security deposit but keep in mind that your deposit is only used to pay off the debt in the event that you default on making payments.
As soon as you receive your card you can start using it to make purchases for your business. When you charge a purchase just simply pay the invoice when it comes due. Now remember the whole purpose of using the card is to build credit so don't be late on your payments. After six months you can request that your account be reviewed for a credit limit increase without requiring a larger security deposit.
Some other benefits of a secured business credit card include:
- Universal Acceptance
- Cash Back Programs
- Online Expense Management
- Easy Funding Options
You can send your security deposit via wire transfer and typical turnaround times take 7-10 business days. Keep in mind that before you select any secured business credit card make sure you read the terms and conditions completely and verify which business credit bureau they report to.
Another advantage to using secured business credit cards is the separation between your personal credit and business credit. In my opinion these types of business credit cards are ideal for every small business owner because it not only establishes business credit but also controls spending, eliminates personal liability and protects your personal credit files.
Related Articles
Facts About Bad Credit Unsecured Credit Cards
Business Credit Cards versus Personal Credit Cards
Get a Guaranteed Approved Auto Loan for No Credit History
Credit cards: how do we use them?
A True Business Credit Card
|
About the Author: Marco Carbajo RSS for Marco's articles - Visit Marco's website Marco Carbajo is a nationally recognized speaker and expert on business credit and business finance. He is the founder of the Business Credit Insider's Circle, a business credit building company offering step-by-step training, support, resources, and expert insight designed to help small business owners establish business credit separate from personal credit, plus obtain the cash and credit their business needs. Marco has spent 19 years in the business and consumer credit industry, where he has successfully built two multimillion dollar companies in a few short years, achieving over $26 million in sales and serving over 46,000 entrepreneurs, mortgage brokers, real estate professionals, and non-profit organizations. A native of Michigan, Marco is a weekly columnist for Dun & Bradstreet Small Business Solutions, a business credit blogger for All Business & American Express Small Business and the author of "Eight Steps to Ultimate Business Credit" and "How to Build Business Credit with No Personal Guarantee." His articles and blogs have been featured in Business Week, The Washington Post,The Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain. Follow Marco on Twitter @MarcoCarbajo and read more of his insights on establishing business credit at his blog. Click here to visit Marco's website   Build Corporate Credit for Your Small Business Small Business Credit Lines Do you know what your banker is looking for Raise Credit Scores Raise FICO Score Product Review Business Credit Builder Unlocks Corporate Credit for Entrepreneurs Building Business Credit is the Path to Your Companys Creditworthiness |
Related Forum Posts
credit cards
- Nana, you can get a credit card! Get a Secured Credit Card. It's a Visa or MasterCard which is a hybrid of a chequing/credit card.
There are two types:
1. You put in an amount that you would like to have as your credit limit in $500 increments as security and you you can either pay in full each month or make minimum payments
2. You can have a credit card linked to your chequing account and you can spend only has much as you have in your chequing account.
I recommend #1 and they both go to improving your credit limit.
My entry
- 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read
- this is a fascinating book about the history of Business theory, and I'd recommend it to anybody.
2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto.
3. PADI: The Business of Diving Book
Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Building credit
- Credit is like reputations, I suppose. Takes a lifetime to build, and only a second to destroy.
Marketing and PR ideas related to a Credit Organization
- Hello Everybody!
I would be very grateful if you suggested some PR and Marketing ideas for a Credit Organization which target market is poor public who live in village and haven't any access to the internet.
Thanx in advance
Exclusive: Interview with Results
- Hi Forum Members,
I'm helping start up a Business Coaching and Consulting company here in Toronto, Ontario, Canada (a Subsidiary of RSC Business in Los Angeles).
As a Research and Development Intern I am required to practice my listening and interview skills by surveying Small and Medium Businesses on thier Business.
This Survey is designed by RSC Business to also assist the Business being interviewed more insight into their own business.
I am looking to interview about 30 businesses across North America over the span of 3 months.
At the end of these interviews I will be publishing a report of the results and they will be made available for free to the Interviewees. The Report data will include responses from a minimum of 100 interviews.
I would like to extend this opportunity to members of the Forum.
If you would like to have this short 20-30 minute interview conducted on your Business and you reside in North America please send me an email or PM.
Please contact me at andy[at]jvprosperity[dot]com to arrange our interview and to get free access to the results when they are published.
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: 
4 Building Blocks of an Effective Talent Management System
Simon Fuller Quotes
Lesson #3: “Tell ‘em quick and tell ‘em often”
Searching for the Stars: How Yang and Filo Took Their Business to New Heights
Salesperson Wimp-Out: I Need Help 
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.