What Is a Secured Business Credit Card?
A secured business credit card is slightly different than its opposite unsecured type. With an unsecured card, lenders hazards more risk, since they can’t be certain that money charged on the card will ever be paid. They’re often unwilling to extend this type of loan to a business unless it has an excellent credit rating. Unfortunately, most businesses don’t start with much of a credit rating, and unless the credit card company wants to take a risk (and most don’t), they’re not likely to issue business credit cards and will instead ask a business owner to apply for a personal card, which means personally being responsible for business debt. The alternative for many companies is to obtain a secured business credit card.
