3 Reasons Why You Need an Unsecured Business Card

Whether you are a 9 to 5 turned full-time real estate investor or starting a storage business after religiously watching Storage Wars, business owners have a lot on their plate. 

These days entrepreneurs struggle to jump-start their business, bring in a steady cash flow, and decide what type of capital best suits their business structure. 

If you are unsure where to start when it comes to business credit cards, here are three reasons why you need an unsecured business credit card to elevate your business to the next level! 

1. No Deposits 

If your credit is average or above, unsecured business credit is ideal for your use. An unsecured business credit card is based on your creditworthiness rather than requiring a security deposit of any kind. 

The account does not require an upfront deposit, and you only have to pay what you spend plus any fees or interest -- sound fair? 

Of course, it does. Unsecured business cards allow you to keep your cash in your pocket while using the bank’s money to run your business. 

Secured cards are typically geared towards people with bad credit or trying to establish a credit history and require a security deposit as a result.   

This deposit does not work like a prepaid credit card where the purchase gets deducted from the available balance, but instead, the deposit gets held separately. You are responsible for making payments without relying on what was paid upfront.  

After a certain amount of time and a positive payment history, the bank may choose to give your deposit back, but that is not guaranteed. 

This is why, for those of you who have health credit, your best option is to work with business credit.  

 2. Higher Credit Limits 

The approved credit limit for a secured card reflects the initial security deposit. Typically, the limit will be equal to or be a percent of the required security deposit.  

This system significantly diminishes your spending power to rely on the cash you can place as collateral should you default on the payments. Especially when it comes to doing business, the last thing you need is limited spending power.  

With an unsecured business credit card, the approved limit gets determined by your creditworthiness. Your credit limits on your personal accounts might dictate your initial approval. But not to worry, because business credit limits will build over time as usage and payment history accumulates. 

You can request increases on these credit card accounts without having to make a higher deposit. Use what was extended, pay it back for a few months, and then request more. It’s that simple, and continuing to do this allows your business to access more credit to fund all aspects of its operations.   

The higher limit enables you to have more buying power and make larger purchases to streamline the expansion of your business. You no longer need to rely on an influx of sales and cash flow to purchase items to help scale your business. You have the capital available to you to buy what your business needs to continue growing and generate more revenue than ever! 

3. Lower Interest Rates 

With a higher credit limit, it is easy to get carried away with swiping your card without considering the amount of interest you will be paying on the purchases.    

Since secured cards are geared towards individuals with bad or no credit, they come with higher interest rates. Because the banks consider you a high-risk customer, they will immediately charge you a higher interest rate.  

Some secured business credit cards tend to hover around 20% APR (Annual Percentage Rate) but can be upwards of 28%, which for anyone trying to run a business is insane! To put a 28% interest rate into perspective, if you make a purchase and carry a balance of $10,000, you would also take on $2,800 in interest. That is crazy! 

Unsecured credit cards are the way to go when it comes to interest rates. Many unsecured business cards offer introductory 0% APR, which means you can buy what your business needs, make monthly payments towards the balance, and avoid gaining interest during your intro period. 

Even after the zero-interest period ends, the average business card floats around 17% APR. No one wants to pay more to borrow the same amount of money. An unsecured card would enable you to fund your business at a lower interest rate, should you carry a balance, than with a secured business card.  

Secured credit cards are great for people who have poor credit or limited credit history and need strict credit card limitations.    

Unsecured business cards are best for those with established credit who want to finance their business without exhausting their cash and want lower interest rates. Let's be honest, who doesn't want that?  

With any business, whether it is dropshipping or making real estate investments, you have other challenges to overcome than obtaining the funding needed to grow.  

Finding funds should be easy, so choose a method that will grant you access to high amounts of capital at low-interest rates.  

Unsecured business credit cards are a way to use the bank’s money to increase your cash flow and kickstart your business.  

$50,000 - $250,000 at 0% Interest

At Fund&Grow, we offer individuals with good credit the opportunity to obtain $50,000 - $250,000 of unsecured credit at 0% interest.

This amount can be used for any purpose, from financing a small business to putting a down payment on a property.

So, if you, or someone you know, need this kind of funding, call us at (800) 996-0270 and we will do our best to help you.

Want to read our featured articles? 

How to Master eCommerce Inventory Management

5 Guerilla Marketing Strategies Every Business Can Use

How to Monetize Your Website While Providing A Superb User Experience

Like our content and want even more useful and powerful information to grow your business and advance in life faster? 

Consider subscribing to “Prosperity Pulse”, our Premium Monthly Premium Coaching, Prosperity Pulse where you can find the latest strategies, information, and resources on business development, entrepreneurship, marketing, finance, real estate, as well as Personal and Business credit. 

It’s also where we share exclusive 0% APR Business Credit Card offers that just hit the market and the most impactful industry trends.  You can also expect to hear from our internal industry specialist team at Fund&Grow for instantly applicable tips and tools to help you experience personal growth and business prosperity. 

About Prosperity Pulse: 

Whether you just launched a start-up or you’re already a seasoned entrepreneur, Prosperity Pulse will provide actionable methods to improve your day-to-day business operations and achieve maximum sustainable growth. 

In our Premium Coaching, you’ll read content-packed articles on credit & financial education, inspirational content-packed tips, resources from our industry experts, and tons of actionable content to save you precious energy, money, and time along your entrepreneurial journey.  

Prosperity Pulse is the ultimate premium coaching that will connect you to the latest business and entrepreneurial trends in the marketplace so you can act on them before the competition.  

Not only will you get a digital copy of the premium coaching, but we will mail you a physical print version each month.  Click here to sign-up for “Prosperity Pulse”.