Credit cards were now became a part of our life,nowadays many businesses use corporate credit cards to pay their bills particularly those between their suppliers or vendors and themselves. The traditional credit cards that accumulates a balance monthly and requires only a minimum monthly payment to keep the account up to date and on the other side many companies were providing procurement cards which are used to purchase small items or supplies. For example:- gas cards, petrol cards etc
Secured business credit card are another form of credit card used by businesses. traditional credit card is entirely different from secured business credit card.It requires a business to open and maintain a savings account that provides a backup to the creditor in the case of any defaults or missed payments by the borrower.
As like the regular one the secured business credit card can be used to pay for all the same services in order to open an account with a bank or credit card company there is a requirement of a savings deposit that can range from a few hundred to several thousand dollars.although some lenders put additional restrictions on the borrowing amounts depending on the credit rating of the business, The business is allowing to use the secured business credit card up to the level of this deposit
Usually the lending institution may wish to carry out the application and processing fees for a secured business credit card that will cover the administrative costs of the application including any credit or reference checks. the tariff may differ from lender to lender, it is very expensive to hold a secured business card because of having a higher rate of interest than a traditional credit card.
Amazing fact about the secured business credit card is it allow companies and individuals that have faced serious financial problems like loan defaults and bankruptcies are eligible to apply for a secured business credit card. thus it makes the convenience of using credit a cards by allowing business to continue to access even if their overall credit rating or credit score is not that great. it can make the difference between business urvival and their downfall because it lets the business pay vendors who are reluctant to advance any more supplies unless they have a guarantee of cash or a secured business credit card in their hands.
The secured business credit card is that it allows a business to build or restore their business credit rating in due course of time. it helps the business to regain its credit rating and reputation. major advantage of a secured business credit card is that it allows a business to build or restore their business credit rating. many financial reporting agencies look at the successful use of a secured business credit card as a step on the road to rehabilitating poor credit score - 31377
Secured business credit card are another form of credit card used by businesses. traditional credit card is entirely different from secured business credit card.It requires a business to open and maintain a savings account that provides a backup to the creditor in the case of any defaults or missed payments by the borrower.
As like the regular one the secured business credit card can be used to pay for all the same services in order to open an account with a bank or credit card company there is a requirement of a savings deposit that can range from a few hundred to several thousand dollars.although some lenders put additional restrictions on the borrowing amounts depending on the credit rating of the business, The business is allowing to use the secured business credit card up to the level of this deposit
Usually the lending institution may wish to carry out the application and processing fees for a secured business credit card that will cover the administrative costs of the application including any credit or reference checks. the tariff may differ from lender to lender, it is very expensive to hold a secured business card because of having a higher rate of interest than a traditional credit card.
Amazing fact about the secured business credit card is it allow companies and individuals that have faced serious financial problems like loan defaults and bankruptcies are eligible to apply for a secured business credit card. thus it makes the convenience of using credit a cards by allowing business to continue to access even if their overall credit rating or credit score is not that great. it can make the difference between business urvival and their downfall because it lets the business pay vendors who are reluctant to advance any more supplies unless they have a guarantee of cash or a secured business credit card in their hands.
The secured business credit card is that it allows a business to build or restore their business credit rating in due course of time. it helps the business to regain its credit rating and reputation. major advantage of a secured business credit card is that it allows a business to build or restore their business credit rating. many financial reporting agencies look at the successful use of a secured business credit card as a step on the road to rehabilitating poor credit score - 31377
About the Author:
Build your Business Credit seperate from your personal credit. Come visit us to see why this is important.
