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A Secured Small Business Credit Card
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- The first is to protect the lending institution whose making a high risk business loan.
- The second is to provide a way for you to re-establish your business credit
You (your business) deposits a certain amount of money into an account at your lending institution.
They, then loan you a sum of money equal to the amount of your deposit. Many institutions, will link your credit card or loan to your bank account. They will then deduct payments if you fail to pay on time.
So what's the advantage to you? You can begin to rebuild your credit.
Of course, you're probably saying to yourself right about now,
"I need a loan, if I had the money to put into an account, I wouldn't need to borrow any!"
At one time or another, most businesses have been in that same position.
We've been there too.
Other Options?...High Risk Business Loans
Do you own your home, car, or other high value items?...motorcyle, snowmobile, 4-wheeler?
Get the picture?...Ideally, these are items you own outright.
If they are vehicles and require registration, you can more easily leverage their value. It is much more difficult to leverage an item with a pre-existing loan.
Once you have your assets listed, determine which you'd like to leverage and go visit your banker. You may be able to obtain a secured high risk business loan by turning over your title/s and securing these items.
Of course, if you own your home you have the option of taking out a second mortgage or line of credit against your equity.
Other avenues to explore are:
- Guaranteed Approval Credit Cards
- US Government Small Business Loan programs
- Local micro-lending Programs
- VA Business Loan Program
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