A Business Credit Card is Not a Four Letter Word

These are challenging financial times.  The days of walking into a bank and receiving a line of credit by simply applying are gone.   At least for the foreseeable future.  But you still need money and it’s time to explore alternative options.  Today’s post is about a quick and easy method to obtain funding that you are going to initially shy away from.  But read on. Business credit cards are a viable way to infuse cash into your business.  Yes, they are “credit cards”.  No, “credit card” is not a four letter word.  At least not in this case.

Business credit cards are identical to personal credit cards with a few differences.  As far as applying, the application is the same, except with a business credit card you must add your business information including your EIN.  Your approval is still mainly based on your personal credit score but business information is taken into account. That’s it.  Upon approval you will receive instant access to as much as $50,000.

Interest-Free Loan for your Business

You can use the funds to pay vendors, purchase equipment or supplies, even take cash advances.  As a matter of fact, many business credit card purveyors are offering as much as 24 months of interest free money.  Imagine.  A $50,000 interest free loan for your business for as long as 24 months!  Otherwise, interest rates typically range from 7-15%.  Here’s one other thing to think about.  Just like you have multiple personal credit cards, you can do the same thing with business cards.  Getting several hundred thousand dollars for your business is easily attainable.

But it is a credit card you say.  Carrying balances on credit cards can have a negative impact on your credit scores.  Yes, that’s normally correct.  But here’s the anomaly in the system.  Business credit cards DO NOT REPORT BALANCES TO THE CREDIT BUREAUS!  That’s right.  You can max out a business credit card and it will not adversely affect your personal credit score.  This truly is a business loan.  We’re simply utilizing a different vehicle to deliver the money.

Computer Generated Approval

My research has shown business credit card vendors look for a specific set of criteria.  Yes, you can get money this way if you’re a start up.  Yes, if you don’t meet the exact qualifications, you can still get approved. Your card limits might be lower but you’ll still get some cash.  I like to counsel people to meet the following criteria.  That way there is no human involvement.  It’s a computer generated approval and you don’t have to worry about convincing an underwriter.  In order to get approved for larger amounts, your application should include the following minimums:

  1. Be in business at least one year
  2. Have an employee identification number
  3. Have gross revenues of at least $285,000
  4. Have a personal income of at least $60,000
  5. Have a personal credit score of at least 700
  6. Have a low credit utilization ratio on your personal revolving debt.

If you don’t meet these qualifications exactly, you can still get approved.  It may just be for a smaller amount.  Use the credit wisely and you will get re-evaluated after 180 days and could get approved for more.

You Must Have a Plan

If you need to get more than $50,000 you can surely apply for more than one business credit card.  This is called card stacking and there is an exact way to do it.  Credit card companies report inquiries to the credit bureaus almost instantly.  Typically within minutes.  For sure within an hour.  Therefore you must plan if you are going to stack cards.  Part of that plan should be hiring a company like Midas Financial to do all the work for you.  We routinely get our clients $300,000.  We’ve obtained $754,000 for one client.  Want to know more?  It’s as easy as filling out the information form on our website.  Happy borrowing….

You Must Have a Plan

If you need to get more than $50,000 you can surely apply for more than one business credit card.  This is called card stacking and there is an exact way to do it.  Credit card companies report inquiries to the credit bureaus almost instantly.  Typically within minutes.  For sure within an hour.  Therefore you must plan if you are going to stack cards.  Part of that plan should be hiring a company like Midas Financial to do all the work for you.  We routinely get our clients $300,000.  We’ve obtained $754,000 for one client.  Want to know more?  It’s as easy as filling out the information form on our website.  Happy borrowing….