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Launch Your Business With 0% Interest Business Credit
Applying for business credit cards can go very quickly (if you have a strong profile) or could be a long and twisted road of credit repair and dozens of applications and follow-ups.
However, there are a number of steps you can begin to take now to make your business funding applications go as smoothly as possible.
Maximize your credit score: While the business credit you want only impacts your business credit score, your initial applications will almost always pull your personal credit score. Experts at business credit consulting companies like BitX Funding and Fund&Grow recommend you have a personal credit score of at least 730+ to secure business credit easily. If your FICO is under 730 we recommend you take the steps to improve your credit, fast!
Research Business Credit Cards: There are a number of websites that feature credit card reviews and recommendations. A few that we recommend are FitSmallBusiness, LendingTree, and Nav. We recommend business credit cards with:
0% introductory rates for 12-18 months
Low-cost balance transfers
Benefits, perks, and point bonuses
Apply For Business Credit Cards: We recommend that you build a spreadsheet of your favorite business credit cards and save the links to the application pages. Now, you can begin to apply for business credit cards.
You will find business credit cards available primarily at banks and credit unions, but you can also find credit cards available from retailers and other online resources. Once you apply for business credit cards both online, over the telephone, and through the mail, you will begin to receive notifications of your acceptance or declines.
Pro Tip: Since many of the best benefits like 0% interest rates have time restrictions, we recommend that you apply for the business cards once you know you what you will purchase with them.
Use Your New Business Credit Cards: Once you receive your new business credit cards, it’s time to use them! You can now purchase services using your credit card as you would normally do, but how do you convert business credit into cash? The easiest way is to use a service like Plastiq. Plastiq is a service that converts credit card capacity into checks that can be deposited like a normal business check.
You can use Plastiq to pay vendors, bills, consultants, rent, and other services and product purchases.
Cycle Your Credit: Remember, you have a 0% interest rate, but you will still have to make your minimum monthly payments, which average to about 1% of your outstanding balance. The goal of using business credit is to generate revenue and hopefully profits, so you can pay down the credit quickly and safely. If your business is not yet profitable by the time your 0% interest periods lapse and you begin to pay interest, you may consider obtaining a term business loan to refinance your existing debt and buy yourself more time.
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