Many business owners overlook the great option of credit cards to invest in a business. But interest rates start at 0% – 4% for 6 months then go up to 10% – 18% afterwards, very comparable to other business loans. You can even advance cash from the card for your business. The best news is it usually requires a credit score of just 620 or higher.
Business Credit Card
How it works
While not technically a loan, Business Credit Cards can often be a great way to start your business, as long as you use them responsibly. The benefit lies in the fact that you have a set amount of credit, but you don’t necessarily have to use it all.
What business credit card is good for?
Any business that needs quick access to capital with varying capital needs. As a startup business, this is a good option to get access capital without a long time in business.
What are the requirements?
Typically, you’re going to need to show your past experience in related fields, and you’ll need to have a credit score of 680 or higher.
You also need to provide two years of personal tax returns.
What is the cost?
Business Credit Cards range from 7 to 30 percent and usually have a lower introductory rate for the first several months.
