Obtaining a business line of credit or loan gets more difficult with each passing day. If you own a small business, you’re already aware that these are challenging financial times.
So let’s talk about a little known way you can immediately infuse capital into your business – business credit cards.
My name is Darrell Hornbacher, founder of Midas Financial Company and co-founder of www.thesmallbizcollege.com. I have spent over 20 years consulting small business owners. Along the way I’ve learned a few things.
Odds are you’ve financed part of your business with personal credit cards. Yes, you were able to get access to much needed cash but now find yourself in credit trouble. Not because you’ve fallen delinquent. All you know is your local banker told you no. Your credit score is too low. You’ve made all your payments on time. How can it be?
Business Credit Cards And Your Personal Credit Score
Personal credit card purveyors report balances to the credit bureaus. As a matter of fact, 30% of your credit score is made up of the amounts you owe related to your available credit. When that number approaches 30%, lenders start to scrutinize. When it exceeds 50%, lenders look even closer.
I’ve seen credit scores go down as much as 150 points because of maxed out personal credit cards. So what is the answer in times like these? Business credit cards!
The Secret To Business Credit Cards
You qualify for a business credit card the same way you do for a personal card with one exception. You’re asked to provide an Employer Identification Number (EIN). That’s it! But here’s the anomaly in the system…
Balances on business credit cards ARE NOT reported to the credit bureaus! You can max out multiple business credit cards and your personal scores will stay intact. Banks like Chase, Wells Fargo, Wachovia and WAMU (just to name a few) all offer business credit cards. The rates are the same and in some cases better. In some cases they offer 0% interest for as long as 15 months. How great is that?
If you’re just getting into business for yourself or your credit scores haven’t yet suffered from the personal credit card trap, I would highly recommend you take a look at this business financing method right away.
Find information like this and much more at www.thesmallbizcollege.com. Our membership site is loaded with hundreds of tools and content articles just like this one on business credit cards that will save you time and money.
