Building Business Credit with Pre-funded & Secured Credit CardsBusinesses face challenges in today's tightening economic environment, pre-funded and secured are a great solution to start building business credit or to rebuild business credit. A pre-funded credit card acts like a debit card. The account is funded through an ACH bank payment or a wire transfer. Cardholders then may use the predetermined amount of funds to make purchases anywhere the card is accepted. As the funds run down, you monitor your balance online and simply add additional funds as needed, at your desired frequency. It's that easy. A deposit account is a secured credit card, but acts similar to a credit card. The applicant submits a deposit of a predetermined amount to secure their account and establish an initial credit line. The credit line is equal to the deposit provided. Clients may increase or decrease a deposit as needed.The business is then invoiced and makes payments the same as a regular credit card.The cards, controls and online services are exactly the same as a credit account and seamless to your employees.
What are the benefits of a secured credit card? Establishing business credit- If you are a new business and need to start building your business credit history. Reestablishing business credit- If your company credit history has been damaged, you may only qualify for a secured credit card. Using this secured card appropriately will help rebuild your credit and qualify you for an unsecured card. Reporting and controls- You will receive all the benefits of regular business credit card with controls, reporting, security and discounts. Useful for transactions that require a credit card - Many business transactions require a credit card for purchases. This will give your company the freedom and ease needed to make these transactions. |
