Small business owners frequently have to make several financial considerations. You typically need to finalize your new business’ economic alternatives and get business insurance. Access to company credit cards might simplify controlling your everyday business spending, even while cash savings and loans can be significant starting points.
One of the joint credit card advice is to look into secured business credit cards rather than their unsecured equivalents if your credit needs to be in the ideal shape. Thankfully, there are several reliable solutions accessible. The top 10 secured business credit cards for small enterprises are listed below.
1. To start, Platinum Prestige First Progress
The First Progress Platinum Prestige is an option if you want a competitive APR but need more credit history. Although it has a 12.24% variable APR, it also includes an annual charge of $49 and foreign transaction fees. Although there are no benefits, it is still a good choice if you want to establish credit while keeping your APR low.
2. Secondly, BoA Business Advantage Unlimited Cash Rewards
There are no annual fees with the Bank of America (BoA) Advantage Unlimited Cash Rewards secured business credit card. Plus, if your account is in good standing and you meet the other requirements, you can switch to an unsecured card version and receive 1.5% cashback.
The card has a 24.49% variable APR, making the interest rate a little high overall. A 3% foreign transaction fee is also charged. However, you can obtain a credit line of up to $10,000 with this card. Additionally, you get access to some excellent benefits like travel accident insurance, lost luggage help, and more, as well as the ability to record transactions directly into QuickBooks.
3. Mastercard Business Edition Secured
The FNBO Business Edition Secured Mastercard has one of the highest credit limits available and can handle a line of secured credit up to $100,000 if you can make a sizable deposit. Although the minimum deposit is very high—110% of the credit limit—having a high credit limit may be the best option for your business.
Additionally, this choice has a higher variable APR, which usually hovers around 22% depending on the prime rate. In addition, there is an annual charge of $39 and a transaction fee of 3%.
4. Secured by OpenSky
Since there is no credit check, the OpenSkySecured card works well for those with bad credit. Although there is a $35 yearly charge, it can be helpful as you strengthen your credit history.
The APR is 18.89% variable, lower than some competitors, and the minimal starting security deposit is $200. Remember the $38 late fee and the 3% foreign transaction fees.
5. Ramp Card
The Ramp Card is a good alternative for every other type of business, even though it isn’t available to sole proprietors or unincorporated enterprises. You are entitled to 1.5% cash back rewards and no yearly or international transaction fees. Additionally, since there is no personal guarantee or credit check, anyone may be approved.
The only difficulty in this situation is that you must fully settle the sum each month. Even if you can save interest that way, it might be challenging if your company can’t initially handle this level of cash flow. To be eligible, you must spend a minimum of $10,000 monthly on corporate cards and have $75,000 in the bank.
6. Capital One Secured Cash Rewards
The Capital One Quicksilver Secured Cash Rewards card can be the best choice for small business owners with bad or no credit. You have a good chance of being approved even if your credit score is in the “fair” range if you have a short credit history. Additionally, there is no annual fee and unlimited 1.5% cash back profits. However, remember that the interest rate is variable at 26.99%.
This card offers lower restrictions than some other cards, which is another appealing feature. You can receive a $200 credit limit if you open an account with a $200 deposit. Other cards often have minimums of $500 or $1,000, so the Capital One Quicksilver Secured Cash Rewards may be a great choice if you need to start small. If you borrow responsibly, you can repay your deposit as a statement credit and qualify for a larger credit limit without increasing your stake.
7. Insured by Wells Fargo Business
Depending on the size of your deposit, you can be eligible for a credit limit with the Wells Fargo Business Secured credit card of up to $25,000. The APR is also affordable at 11.90% plus the prime rate. There is also no yearly cost.
Adding up to 10 employee cards makes this option especially strong for small firms with staff. Additionally, there is a rewards program. Your possibilities are traditional cash back, 1.5% back on purchases, or using points. A company expenditure report and card alerts for any account activity are options.
8. Union Bank’s Secured Business
A lower APR is essential if you frequently carry a balance. You may receive a variable APR of 15.49% with the Union Bank Business Secured card, which makes this choice appealing. There is a $30 yearly fee, more than some other cards charge. It is worth it to get a limit of up to $25,000.
Additionally, this card has an auto rental collision damage waiver, which may make it a good option for small enterprises renting cars and traveling frequently. Customized alerts can also be set up to keep you updated on account activity.
9. Capital One Spark for Business
The Capital One Spark Classic for Business secured credit card is a respectable choice for small business owners who need excellent credit. Considering the high-interest rate (now 26.99% variable), there are better ideas than carrying debt. There are no yearly or international transaction fees, so you might still be eligible even if your credit score is closer to 600.
This card also offers a bonus feature of 1% cash back on every purchase. Additionally, it has a few great extras like extended warranties, free employee cards with specific spending limits, and roadside assistance.
10. Acquire it
Another alternative for consumers with bad credit is the Discover secured credit card. You can qualify for a 10.99% introductory APR on balance transfers for six months, even though the usual APR is 24.49% variable. This might make paying off current debt simpler.
You can earn rewards with this card, which is an additional perk. Additionally, there is no yearly charge, and a $200 minimum deposit is required to start. Finally, all three main credit bureaus receive reports from this card. This makes sure that your positive spending habits raise your overall score.
