As an ambitious small business owner, you know the importance of maintaining a strong financial foundation. One of the key tools to help you achieve this is a business credit card. But what if you're currently struggling with bad credit? Does that mean you have to miss out on the benefits of a business credit card? Absolutely not! In this article, we'll reveal the best business credit cards for small business owners with bad credit, and help you understand what to look for to find the perfect card for your unique needs.
Best Business Credit Cards For Small Business With Bad Credit Table of Contents
Why a Business Credit Card Matters
Best Business Credit Cards for Small Businesses with Bad Credit
Why a Business Credit Card Matters
Even if your credit history isn't perfect, a business credit card can provide vital support for your small business. Some key advantages include:
- Separating your personal and business expenses
- Building business credit
- Providing you with a source of short-term financing for cash flow gaps
- Offering potential rewards, such as cash back or travel miles
Best Business Credit Cards for Small Businesses with Bad Credit
Here are our top picks for business credit cards geared towards small business owners with bad credit:
1. Wells Fargo Business Secured Credit Card
With the Wells Fargo Business Secured Credit Card, you make a security deposit that serves as your credit line, typically ranging from $500 to $25,000. This card offers a competitive 1.5% cashback on all purchases and has a reasonable annual fee of $25. Additionally, Wells Fargo may grant a higher credit limit after a year of responsible card usage.
- Annual Fee: $25
- APR: Prime Rate + 11.90%
- Rewards: 1.5% cashback on all purchases
2. Capital One Spark Classic for Business
The Capital One Spark Classic for Business is designed for small business owners with average credit (a credit score of 580 to 669). This card offers a straightforward 1% cashback on all your purchases, with no annual fee. The downside is that it comes with a relatively high APR.
- Annual Fee: $0
- APR: 26.99% variable
- Rewards: 1% cashback on all purchases
3. Bento for Business
Bento for Business is a charge card, which means you must pay the balance in full each month. This card offers a unique feature—tight spending controls that allow you to determine exactly where and how employees can use the card. Bento for Business offers a 60-day free trial and tiered pricing based on the number of cards you need.
- Annual Fee: Starts at $29/month after the 60-day free trial
- APR: N/A (must be paid in full each month)
- Rewards: None
Best Business Credit Cards For Small Business With Bad Credit Example:
Imagine you own a growing e-commerce business and have a credit score of 630. While you don't have the best credit, it's not the worst either. After reviewing the options above, you decide to apply for the Capital One Spark Classic for Business.
This card offers 1% cashback on all your purchases, which could help cover the cost of inventory or marketing expenses. Additionally, the annual fee of $0 means that you don't have any extra costs to worry about. Though the APR is relatively high, you plan to pay off your balance in full each month to avoid interest charges.
By using this card responsibly, you'll be able to improve your credit score over time while reaping the benefits that come with a business credit card like cashback rewards and separate finances.
Your small business deserves the best when it comes to financial tools, even if your credit isn't perfect. The right business credit card can help you strengthen your financial foundation, allowing your business to flourish. So don't let bad credit hold you back – explore the options above and give your small business the boost it needs.
If you've found this article helpful, be sure to share it with fellow small business owners, and don't forget to check out other informative guides on Flik Eco for more personal finance and investing tips tailored to your unique needs!
