Bad Credit Business Credit Cards

Business credit cards generally offer business-specific benefits, such as employee cards and spending controls, with service tailored to the needs of small business owners. These perks allow business credit cards to be used as a business financial tool that entrepreneurs can incorporate into their business strategies. Startup companies or business owners with lower-than-average credit score may look for bad credit business credit cards. However, there are no uniquely designed business credit cards for bad credit. The good news is that there are a few alternatives, such as secured credit cards or business lines of credit.

Lines of Credit vs. Business Credit Cards

Business lines of credit and business credit cards can be effective ways to finance small business operations. And they don’t have to be mutually exclusive; many business owners use both. The products have a number of similarities, including their revolving nature, predetermined borrowing limits and only charging interest on outstanding balances. However, there are differences in the approval process and how they can be used.

While even the best business cards still typically rely on the traditional FICO score to make their approval decision, alternative lenders like Headway Capital will weigh a number of factors in the underwriting decision. You also don’t have to wait nearly as long to access your funds. While it can take weeks to receive your credit card, an online approval decision is made in minutes and, if approved, funds are available the next business day. Additionally, while credit cards can only be used for transactions in which credit cards are accepted, a line of credit can be used to access cash, which in turn can be used for any business expense — including payroll.