Are you a startup owner with bad credit, struggling to find business credit cards that cater to your unique financial situation? Fear not, for Flik Eco is here to help! In this article, we will guide you through the best business credit cards for startups with bad credit, so you can access essential funds and kick your business into high gear, without fretting over your credit score.
Best Business Credit Cards For Startups With Bad Credit Table of Contents
Finding Business Credit Cards for Startups with Bad Credit
While mainstream credit card issuers might shy away from startups with bad credit, there are still viable options available in the market. Here are some of the best business credit cards for startups with bad credit:
1. Secured Business Credit Cards
- Secured cards require a cash deposit to serve as collateral, which equals your credit limit.
- You’ll earn back your deposit once you close the account or upgrade to an unsecured card.
- These cards are great for rebuilding credit, as payment history gets reported to credit bureaus.
- Examples of secured business credit cards include the Wells Fargo Business Secured Credit Card and BBVA Compass Secured Visa® Business Credit Card.
2. Business Charge Cards
- Charge cards don't come with a pre-set spending limit, but balances must be paid in full each month, which can be both beneficial and challenging, depending on your cash flow situation.
- American Express is known for its business charge card offerings, such as the Blue Business® Plus Credit Card from American Express.
3. Vendor or Supplier Credit Cards
- These cards are specifically designed for purchasing goods and services from specific vendors or suppliers.
- Many large companies, like Home Depot or Lowe’s, offer business credit cards with flexible credit requirements.
- Vendor credit cards may help build your business credit with responsible use.
4. Subprime Business Credit Cards
- These cards cater to individuals with poor credit but may come with high fees and interest rates.
- Some subprime credit card companies, like First Premier Bank, offer business credit cards.
- Using a subprime business credit card responsibly can lead to better credit card options down the line.
Best Business Credit Cards For Startups With Bad Credit Example:
Let's say you run a small construction company and have a challenging credit history. You’re looking for a business credit card to purchase materials and equipment. In this case, you might consider applying for the Home Depot Commercial Revolving Charge Card.
- This card has no annual fee and provides you with flexible payment terms.
- You'll enjoy a 60-day grace period for interest-free purchases, helping your cash flow.
- By paying off your balance on time and in full each month, you can build your credit and open up more credit opportunities in the future.
Now that you're familiar with the best business credit cards for startups with bad credit, it's time to take charge of your startup's financial future. By leveraging these credit card options, you can provide your growing business with much-needed capital while working to improve your credit score along the way. Don't forget to share this article with fellow startup founders who may be in the same boat, and make sure to explore more of Flik Eco’s engaging and informative content for other essential finance and investing tips.
