Business credit comes in many forms. If you need more money for your business, you can try any of the available products and services. To get you started on getting business credit for your startup business, try any of the five following products or services.
Credit Card Companies' Business Cards
The four leading credit card companies from which everyone tends to get a personal credit card also supply business card options for business owners. You will need to navigate around the main websites of the four leading credit card companies to find the application links for the business cards they offer. Apply for those business cards, and then go back and apply for the business funding that a couple of these companies (e.g., Discover card, AMEX) offer to business owners only.
Business Lines of Funding
Some credit card companies offer lines of funding as well as business credit cards. When and if you qualify for a credit card, you can also apply for a line of funding. The line of funding can be added to or connected through the credit card to extend your credit limit when the limit on the card is not high enough to fund a particular business venture or make a really big business purchase. If you qualify for a credit card, but you would rather have the funding line instead, apply to get the card and funding, and then cancel the card. Most new business owners, however, are happy to have both lines of funding and credit.
Small Business Loan via a Bank
Most banks are able to provide small business loans to first-time business owners. However, you will need to apply for them under an EIN/TIN number rather than your personal Social Security number. If you cannot get a small business loan regardless of which bank you apply to, try getting a bank credit card.
Bank Credit Cards for Businesses
When you cannot get a small business loan from a bank, and you cannot get a major business credit card, try applying for a bank credit card for business purposes. The four leading credit card companies look at Trans Union credit reports, which often leads to denial of credit. Smaller banks rely on credit reports from two other credit reporting agencies, which frequently do not list all of the past loans extensions of credit that you have or have had. This subsequently results in an approval for a bank credit card for business.
Secured Asset Lending
Finally, if you choose to do so, you can apply for a loan for your business by putting something of value up for collateral. This is "secured asset" lending. Find something of value that you are willing to part with, and use that to try to secure a loan for business purposes.
