What you need to know and do in order to raise funds as your business capital

1. Business
credit
Unsecured VS
unsecured
business credit
cards
small business
loans despite
bad credit
Why You Should Take
Advantage Of Business
Credit Cards
Lowdown On Bad
Debt Credit Cards,
Unsecured Credit
Lines AND MORE!

2. Contents
1. Secured vs. Unsecured Business Credit Cards 1
2. Small Business Loans Despite Bad Credit 4
3. Take Advantage Of Business Credit Card Offers 7
4. Lowdown On Bad Debt Credit Cards 11
5. Unsecured Credit Line As Your Business Solutions 14

3. 1
Secured vs Unsecured
Business Credit Cards
having a bad credit record can surely become a
hindrance in establishing your business.
Most likely, you will have difficulty in trying to persuade lenders to give you a
credit account, which can be very significant for your company.
Without a credit account for back up, you are placing your company at a very
huge threat of running out of financial resources and even a possible pause in its
operations.
But because your credit score may not be very constructive to your reputation,
you may have very limited options.
Either you get an unsecured bad debt credit card or a secured credit card.
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4. 2 BUSINESS CREDIT
In this article, I will reveal the difference between both cards and how they can
help your business, especially if you have bad credit.
Difference Between A Secured And Unsecured Credit Card
A secured credit card would basically require you to have a security deposit in
the bank before you can use it.
This amount of deposited money will be your guarantee of payment to your
lender.
Most secured credit cards though, hold credit limits amounting to a percentage
of the balance that you have in your account so if your business may need to
make large purchases that your balance cannot afford, then this may slow
things down.
On the other hand, an unsecured credit card allows you to make purchases even
without the collateral.
But such a lose set-up may also charge high rates of interest and may have
stricter penalty agreements for late payments as compared to that of a secured
account.
Despite this, a lot of people still prefer this type of account, as it seems to offer
more flexibility and freedom to its users.
However, in cases mentioned above wherein you have a huge debt or a bad
credit record, the chances are that signing up for an unsecured account might
be too risky.
After all, if you are not well disciplined in using your credit card, you might just
end up adding more and more to your already escalating debt.
How Do I Choose Which Is Best For My Business?
Because of the fact that both types of credit cards have good and bad
characteristics, the key to choosing which would be best in your situation is to
consider the potential of your company to make the right payments as well as
its needs.

5. Secured Vs Unsecured Business Credit Cards 3
Bear in mind that you have already started off with an unfavourable credit
score.
So be sure that if you sign up for an unsecured credit card account, your
business is making enough profit to put up timely payments to the lenders.
Otherwise, the high interest rates will just further sink your business into bad
debt.
Also, unsecured credit cards are only best used if the type of business that you
have is really in need of a more flexible system of borrowing finances.
Such as that of manufacturing companies that need to purchase large quantities
of materials in order to have production.
In such cases, unsecured credits are reasonable for use.
But still, if you are just running a small business and fearful of possibly
worsening your already damaged credit score, then opting for a secured credit
account will be a much safer bet.
With this, you can forego with possibly drowning yourself in escalating rates of
interest that your company might not be able to cope up.
If you have bad credit, the choice for which credit card would be best for you
will basically depend on your business.
If your business has high demands for large purchases and if you as the business
owner can make sure that you can most probably make your payments on time,
then there is nothing wrong with getting an unsecured account.
But if your company does not always need to make huge purchases anyway and
you want to be sure in improving your credit score by avoiding late payments
and huge debts, a secured business credit card is highly advisable.
No matter which you choose, always remember that you can only improve your
bad credit and pave way to the growth of your business if you handle your
finances and credits well.

6. 2
Small Business Loans
Despite Bad Credit
it is a common fact that business cannot function
smoothly without capital.
Even with a fixed investment for your mini-business, there are always
unexpected expenses that will crop up from time to time.
The only way to solve this problem is through small business loans.
But, is it possible for someone who has a bad credit rating to avail such financial
help?
Yes, they can!
It is true that having a bad credit rating can hinder the possibility of vying for a
financial loan to help your small enterprise.
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7. Small Business Loans Despite Bad Credit 5
Many traditional and conservative financial institutions, like banks, are only
accepting individuals with good credit scores and shunning the rest.
But that is no longer the case today.
Secured And Unsecured Loans
Considering the number of financial lenders in the market, many stay on the
competitive side by offering small business loans despite bad credit status.
They come in 2 basic forms: secured and unsecured.
Secured loans are financial aids with collateral as security, which can either be
in residential or business property, or any assets with the same value.
Unsecured loans are the opposite; lenders will give you the financial help you
ask without any security at all, which can be useful if you don’t have any plans
in putting your assets at further risks.
Secured loans, however, allow you to loan larger amounts, unlike its
counterpart, at lower interest rates and better payment terms.
Unsecured loans are usually attached with a much higher interest rate, and
much stricter payment schemes.
Also, unsecured loans require in-depth credit checks and assurances before you
can be accepted for one.
Since this type of loan is very risky, especially on the lenders point-of-view,
they need to maximize the possibility of getting back what is owed in case
things go wrong.
However, this can be easily achieved by approaching SBA or Small Business
Administration for help.
This organization will act as assurance to the lender regarding the unsecured
loan despite your bad credit status.
Even if you have a bad credit status, you can easily get a small business loan by
having ready documents that will testify the financial stability of your business.

8. 6 BUSINESS CREDIT
If your venture is earning a sizable income, you can provide financial statements
like balance sheets and income statements to give evidence to that fact.
Looking For A Lender
When you search for a lender of a bad credit small business loan, you need to
take into consideration some areas before you proceed.
First, you need to keep in mind on the condition of the loan before you get one.
Take into consideration interest rates, and payment terms and conditions if you
can cope up with it.
This is usually the case when you go for secured loans, and using your
properties as security.
You need to keep in mind that failure to pay these loans can cost you your
assets, as well as your business venture.
Also, this is a fine opportunity for you to build up your credit score while going
for the bad credit loan.
Try to look for one with payment schemes that you can readily afford.
Prompt payment for these can boost your credit scores up a notch, which will
improve of getting much better financial aids in the near future.

9. 3
Take Advantage of
Business Credit Card
Offers
the business credit cards are not solely designed
for large and well-established companies but also for other small and
intermediately sized businesses.
Almost everyone can benefit from the several advantages that a business credit
card brings.
The fact that the monthly cash flows and business cycles exists, there are
companies and organizations that are not able to manage without company
credit cards.
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10. 8 BUSINESS CREDIT
Credit cards are invaluable for a host of business purposes from simplifying the
bookkeeping process to limiting and tracking the business’s monthly
expenditures.
Additionally, the ownership and use of business credit cards can also help
smaller businesses to develop a tone of credibility and legitimacy.
This kind of perception will not only manifest in the company’s vendors but
also amongst the employees and owners, as well.
A business credit card is essential for today’s expanding businesses and
organizations.
Comparing The Offers
There are several business credit cards available through thousands of financial
sources.
Most of these sources offer the best rates with favorable terms.
To become a savvy businessman, it is vital to know the significance of a
business credit card that can offer rewards or several perks that have a positive
bearing on the business’s purpose, while building a strong credit history at the
same time.
And so, it is imperative to choose a card that best fit the operations of your
business.
Be on the lookout for business credit cards with 0% APR or annual percentage
rate on either the first 6 to 12 months.
Depending on your purchases, there are credit cards offer 5 to 20% cash back
bonuses through the Cashback Bonus feature.
Other key features that you must review are the following.
1. Annual fees
2. Miles
3. Card Purchases And Transfers On The Balance

11. Take Advantage Of Business Credit Offers 9
4. Liabilities from fraudulence
5. Personalization
6. Additional credit cards
7. Cash rewards on purchases made by additional card holders
Benefits for Small Businesses
Business credit cards do not only provide assistance in the financial aspect of
the business but also bring benefits and rewards to the business owner.
You will be able to make the most out of the business credit card through
simple advice.
You can use your business credit card for emergency reasons.
The ultimate challenge for a business is the maintenance of a smooth cash flow.
There are businesses challenged by this factor when they have a small budget.
There can be moments when emergencies occur, like when you are given a hefty
order from a client unexpectedly and you do not have the adequate funds to
accomplish the order; this is where the business credit card comes in handy.
Through the use of the credit cards, you will be able to charge the expenses and
pay it at a later time.
After delivering the goods to the client and receiving the payment, you will be
able to pay for the expenses you charged.
Business credit cards are essential in giving you enough time to stretch your
cash and create the necessary adjustments as the situation demands.
Lastly, you will be able to track your business expenses more easily.
Credit cards provide flexibility to track your business expenses conveniently.
You can benefit from the statement of accounts that will reflect all the charges
you made in detail.

12. 10 BUSINESS CREDIT
Most business credit cards also provide an online account access to its holders.
This would enable you to look into your account right from your computer at
any time.

13. 4
The Lowdown On Bad
Debt Credit Cards
it is common these days to find a lot of people with
bad credit scores.
Failure to make payments on time and accumulation of debts are just some of
the reasons that could damage a person’s credit history, whether it is personal
or for business.
If you are one of these people, then you will know that the major problem with
this is that most lenders would no longer be able to trust you enough to provide
you with financing through credit cards.
And if you are running a business that greatly depends on such credit funding,
then you might feel that you are in a hopeless situation with no way out of your
monetary troubles.
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14. 12 BUSINESS CREDITS
However, all may not be lost for you because it is good to know that a lot of
credit card companies today offer an alternative solution through bad debt
credit cards.
What Are Bad Debt Credit Cards and How Can These Help?
A bad debt credit card pretty much works in the same way as most regular
credits, with a few exceptions.
This type of credit source is designed to cater those with poor credit histories,
so along with it may be some policies and terms that are different and even
stricter than that of regular accounts.
These tighter policies do not necessarily exist to further trap you into your
financial problems but they actually aim to encourage you to build up your
credit score, just as long as you are able to consistently manage payments and
debts with your existing bank.
Lenders of this type of credit also give you the advantage of reporting directly to
other credit rating agencies about your standing, which could greatly assist in
changing the impression on your unfavourable credit record.
At least, with an existing source for finances, individuals who are highly reliant
on credit to continue production for their businesses are given a chance in
carrying on with their operations, and most importantly, earn in order to pay
for debts.
What Are Some Disadvantages of Having Such Credit Cards and What
Should You Look Out For?
As good as these credit cards may sound, never forget that they are not regular
credit cards and they do have different policies.
These come with strict rules and terms to discourage people from not meeting
the right payments.
In using a bad debt card, expect that there will be higher interest rates for your
purchases; therefore you should be very careful in using them.
Make sure that you would only use your credit if it is badly needed and if there
is no other possible resource for funds.

15. The Lowdown On Bad Credit Card Debts 13
Aside from this, never make purchases through your credit card that you are
not capable of paying for on time.
If you are not able to handle using your bad debt credit card responsibly, then
be prepared to further worsen you credit rating and have your financial
problems mount up.
Bad debt credit cards offer people a very good alternative to still own a credit
card account despite having an unfavourable credit score.
This may come with certain limitations that could possibly make your financial
standing worse, but keep in mind that this can only happen if you are not
careful in handling your credit.
This type of credit card aims to encourage people to improve their credit
ratings, so make sure to play your end of the bargain.
If managed wisely, these types of credit cards can surely go a long way in
helping you get out of your financial difficulties and further cater to your
personal or business financing needs.

16. 5
Unsecured Credit Line As
Your Business Solutions
at some point, the reality with most businesses is
that fluctuation periods would eventually come and such companies will have
to face problems regarding their cash flow.
A company may experience a financial crisis wherein more cash may be going
out than entering as profit.
It is very important for any enterprise to never run out of funds, especially if the
life of the business is dependent on being able to make large purchases of goods
for production.
In such dilemmas that many business owners are either facing or are at risk to
face in the future, having an unsecured business line of credit could make all the
difference.
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17. Unsecured Credit Line As Your Business Solution 15
What Is An Unsecured Business Line Of Credit And How Does It Help?
An unsecured credit line for your business is a type of financing resource that
can provide your company with the money that it needs without requiring
collateral.
Having such a credit line for your company can be of great benefit, especially
when faced with problems on cash flow.
This can provide you with the temporary funds that your company may need
for operations to continue.
This is extremely vital especially when funds are simply either lacking or not
available but your business is greatly dependent on making purchases for
production and profit to come in.
Aside from that, this type of credit line can also be beneficial for commercial use
in such a way that it involves fewer risks for your part as the business owner as
no collateral is involved.
This means that you do not necessarily have to gamble your company’s other
available resources.
Most lenders offering this credit line can also charge less interest and even a
bigger credit limit as compared to other sources of finance.
Assuring that your company has an unsecured line of credit will be a big step of
precautionary on your part to keep your company afloat, even when faced with
financial crises.
What Should I Consider Before Applying For An Unsecured Credit Line?
What you should know about trying to secure such a credit line is that it may
not be as easy as you want it to be or that it may not come right at an instant.
In applying for unsecured credit lines, lenders would usually take the extra step
of checking on your company’s credit history.
This is necessary for them to do, as they are risking more by providing you with
finances without the collateral.

18. 16 BUSINESS CREDIT
And, thus, before you can be approved for an unsecured line, make sure that
your company has maintained a favorable credit score.
These lenders are interested to find out if whether your company is capable of
making the right payments and purchases for both your parties to gain good
income.
In running your own company, sometimes being prepared for possible
problems can surely play a big role in helping you ride the tides of business.
For sharp entrepreneurs, even when there is no immediate need for the extra
funds, having an unsecured credit account at hand will be a good cautionary
tool for anything that could possibly go wrong with the business.
After all, you can never know exactly when your company might experience
cash flow problems.
But knowing that you have back up when funds become unexpectedly tight
through unsecured business lines of credit, will surely set a whole lot of
difference for your business to step up the ladder.