If you are looking for a business credit card, but you don’t have good credit personally, nor have built up enough good credit under your business name to qualify for a credit card then you may be looking at a small business secured credit card. Small business secured credit cards are common in limited corporations or sole proprietorship businesses where the business owner or owners don’t have good credit under their name to back up the business. We’ll discuss how these cards are obtained and what you can expect from a secured business credit card.

You can find secured business cards the same way that you can find regular secured cards, and you can get them in your business name by showing your certificate of assumed business name or DBA license, and providing your tax ID number. Your tax ID number may simply be your social security number if your business is a sole proprietorship and you are the owner. This is where a secured small business credit card comes in handy, with small businesses and sole proprietorship businesses. You may be able to talk to your bank to get the card, or you may have to look online.

Secured small business credit cards work by requiring a cash deposit in the amount of the line of credit. You can then use this line of credit as a regular credit card and by using the secured credit card you build up credit for your business. This will actually build up credit underneath your business name and you can eventually apply for credit with the good credit that you build up. This is one benefit that business owners have. Make sure that if you do get a credit card in the name of your business that you pay it on time and are careful with it, and in the future you may be able to get a business loan with the credit history you have created.

If the circumstances are right you may be able to get a partially secured credit card for your business which means that you only have to put up a portion of the deposit to get a secured credit card. This is the case if your business has had some credit before and you apply through a company that offers secured credit cards, partially secured credit cards and completely unsecured credit cards. If they look at the credit history of your business and see some positive credit then they may approve you for a partially secured credit card. For instance, you deposit $1000 for a credit line of $2500.

Getting a small business credit card is a good idea for any business owner because you can earn reward points on purchases that you make, as well as giving business credit cards with certain limits to employees to allow them to purchase items that the company pays for, but are their responsibility. This may eliminate the need to keep petty cash on site, or having to write checks out to employees to purchase things for the business. If you can use the secured card to build up your business credit you may be able to get regular credit cards for this purpose later.