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Credit For Small Business - How to Obtain Credit for a Small Business - Small Business Loans, Small Business Credit Cards

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Running a business can be a very rewarding experience. It feels good to make money without having to answer to a boss. This is what makes it so difficult when a business is struggling. In this economic recession, many business owners have found themselves in this situation and have had to turn to apply for credit for the small business. Even worse, is that some people have chosen this time to start a business and have found it more difficult than planned. Business owners in both of these situations require help to get them over the bump in the road.

Small Business Loans

The first type of credit that most businesses try to apply for is a small business loan. However, getting a small business loan is not as easy as it once was. Many business owners are finding themselves turned down for loans based on a couple of small blemishes on their credit or because of a minor blip on the company’s income statement. Having been turned down for a regular loan, many business owners turn to small business credit cards.

Small Business Credit Cards

Since loans have become more difficult to obtain, small business credit cards have begun to be used as loans were used in the past. The difference with this type of credit for a small business is that it comes with higher interest rates than regular loans. The upside, though, is that once the credit cards are obtained, regular payments and smart use of them will help the credit rating of the business in the long run so that it may be possible to obtain a loan the next time help is needed.

To help with the fact that small business credit cards come at a high APR, it is possible to obtain a small business credit card with cash back or reward opportunities. This can help to offset the high APR, especially if the balance on the card is paid off quickly. Some of the best business cards to apply for include the following:

Discover Miles Card – This is a great card for businesses in which there is frequent travelling. The card gives double miles on the first $3,000 spent on travel and restaurant expenses each year.

American Express Blue Cash – Blue cash gives a cool 5% cash back on all everyday purchases. There is no annual fee and 0% APR for the first 6 months.

Citi Platinum Select MasterCard – This card offers cash rewards on many different types of purchases. It also has a 0% APR on purchases for 12 months and for 18 months on balance transfers.

If You Cannot Obtain Credit for a Small Business

If you own a small business and have been turned down for both loans and credit cards, there is very little you can do at the present time. It is possible, however, to use the experience to try to get on track for the future. When turned down for credit, it is a good idea to always ask the lender why you were denied. If they refuse to tell you in person, then request a statement of reasons in writing. Lenders are compelled by law to provide the reasons you were denied. Once you know the reasons, you can work to improve those areas and obtain credit for the small business in the near future.

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