Small business credit cards are simple to obtain, and are by far the most used form of small business financing. There are literally thousands of global institutions that offer small business credit cards. These small business credit cards can either be secured by your personal credit, your business's credit, or both.
A real small business credit card, though, is established and granted in the name of the business - using only the business's credit. The history or activity is reflected on your business' credit report through Dun & Bradstreet and other institutions. Liability for any debt lies solely with the business. Some of the most recognizable small business credit card institutions are Citibank, Bank of America and American Express. In addition, many retail outlets offer them as well. This can include, but is not limited to, gas stations, offices stores, electronics retailers and others. Many small business credit cards allow a business to accrue points, frequent flyer miles and other benefits for using them.
Newly established small business or franchise operations will start out with no business credit history, so it can be nearly impossible for them to get small business credit card without a personal guarantee. Without a personal guarantee, the business owner is not obligated to pay debts if the business fails and the debt of the card is not reported on an individual's credit. Small business credit cards with personal guarantees, on the other hand, will show up on an individual's credit if the account goes into default.
Small business credit cards can be acquired by companies of any size. In fact, more than 70% of small business credit cards are awarded to businesses with zero employees. You can improve your business's buying power, efficiency and cash management through an intelligent small business credit card program.
As a new small business or franchise owner you should apply for a DUNS number and begin building your small business credit as soon as possible. Eventually, any personally guaranteed credit should be replaced with true small business credit cards and/or small business credit line. If you want to find out more about our custom small business credit building program, fill out the form to your right to request additional information.