Small business owners face many obstacles, regardless of whether they’re preparing for a grand opening or are celebrating their tenth year in business. There are unique positions that these business owners must balance in order to grow at healthier paces while also remaining profitable.
For instance, a small business must have access to lines of credit; however, according to the Small Business Administration, those that are able to avoid going into debt are the ones that will survive tough economic times, such as those we’ve experienced the past three years in the U.S.
These businesses must also determine where they’ll acquire their credit lines. Is a traditional business credit card the best option or do these smaller companies fare better by reserving their lines of credits only through their suppliers? That said, and again, according to the SBA, you might be surprised to learn that 25% of all small businesses in this country have absolutely no lines of credit in any form. These companies might find themselves “capital-constrained” and as a result, will grow much slower than they could. Also, only 20% of small businesses have lines of credit with their banks.
The question then becomes:
How can I grow my small business in such a way that allows me to incorporate credit lines when necessary but without finding myself overwhelmed with debt?
One way many small businesses are reaching their goals is through micro loans and prepaid credit cards.
Below, we’ve included two examples of credit cards designed exclusively for small business owners who want to know they have access to reasonable lines of credit when needed.
The Small Business Micro Loan Visa Credit Card is a great way for small businesses, even those who might have had a few credit struggles in the past, to secure a bit of ready-cash. There’s no limit on the size of your business – no small business is too small. You can qualify for a credit line of up to $750, making it an ideal solution for those businesses who need the peace of mind of knowing there’s an emergency stash. The APR is a bit higher than traditional credit card offers, but for those who have been declined with other offers, this might be a great fit.
Approval is easy, too. You’ll need to provide a voided check and depending on your business structure, the necessary paperwork such as your tax ID. Finally, this card is the ideal fit for those who travel out of the United States. The foreign transaction fees are minimal and other fees include an account origination fee and a monthly maintenance fees. Cash advances will cost a bit extra in terms of interest, but all in all, this offer covers the realm in terms of specific needs of small businesses.
A prepaid business card is quickly becoming the tool of choice for small business owners. First, you’re offered impressive fraud protections and just as importantly, your employees can streamline those errands or petty cash purchases that should be better documented for your bookkeepers or accountants. The online (real time) account management option on the PEX Visa Prepaid Card makes it a breeze to keep up with expenses. You can also set up daily spending limits on any of your cards so that you may issue them to as many employees you need with no worries about overspending.
This credit card is touted as a financial tool that helps you protect your business and your personal credit and we agree. It hits the mark on convenience, affordability and versatility – three must-haves for any successful business. There’s no credit check involved and you’ll enjoy a complimentary two month trial run. The pricing schedules include no transaction or card reload fees and this card eliminates any worries over costly overdraft fees.
Running a business is always challenging; rewarding no doubt, but not without its uncertainties and small business owners tread lightly in terms of all their decision-making. They understand one wrong choice can have repercussions for years. Taking the necessary precautions when it comes to the financial aspects ensures your small business is around for many years.