| Many businesses now use corporate credit cards | | | | processing fees for a secured business credit card |
| to pay their bills, particularly those between their | | | | that will cover the administrative costs of the |
| suppliers or vendors and themselves. There are a | | | | application including any credit or reference checks |
| number of products on the market that can | | | | that the lending institution may wish to carry out. |
| meet these needs. They include the traditional | | | | These fees vary from lender to lender. A |
| credit card that accumulates a balance monthly | | | | secured business credit card is also usually more |
| and requires only a minimum monthly payment to | | | | expensive to use than a conventional credit card |
| keep the account up to date as well as | | | | and often has an annual fee and carries a higher |
| procurement cards that are used by many | | | | rate of interest than a traditional credit card. |
| companies to purchase small items or supplies. An | | | | The advantages of a secured business credit card |
| example of a procurement card might be a gas | | | | are that it allows the business to continue to |
| card that allows employees to fill up the company | | | | access the convenience of using a credit card, |
| vehicles. | | | | even if their overall credit rating or credit score is |
| But another form of credit card used by | | | | not that great. Even companies and individuals |
| businesses is called a secured business credit card. | | | | that have faced serious financial problems like loan |
| The difference between a traditional credit card | | | | defaults and bankruptcies are eligible to apply for |
| and a secured business credit card is that the | | | | a secured business credit card. Sometimes a |
| latter requires a business to open and maintain a | | | | secured business credit card can make the |
| savings account that provides a backup to the | | | | difference between business survival and their |
| creditor in the case of any defaults or missed | | | | downfall because it lets the business pay vendors |
| payments by the borrower. | | | | who are reluctant to advance any more supplies |
| A secured business credit card can be used to | | | | unless they have a guarantee of cash or a |
| pay for all the same services as a regular | | | | secured business credit card in their hands. |
| business card and in order to open one a bank or | | | | The other major advantage of a secured |
| credit card company will require a savings deposit | | | | business credit card is that it allows a business to |
| that can range from a few hundred to several | | | | build or restore their business credit rating. Many |
| thousand dollars. The business is then allowed to | | | | financial reporting agencies look at the successful |
| use the secured business credit card up to the | | | | use of a secured business credit card as a step |
| level of this deposit, although some lenders put | | | | on the road to rehabilitating poor credit scores |
| additional restrictions on the borrowing amounts | | | | and in the long term can assist a business to |
| depending on the credit rating of the business. | | | | recover its credit rating and its reputation. |
| In addition there are normally application and | | | | |