American Chronicle:
As a business owner or entrepreneur just starting out, getting financing may be difficult, especially when credit market conditions are tight, as they are right now. You may think that your only option is to apply for a secured business credit card account. Don’t. As long as your personal and business credit histories don’t have any serious negative items on them, you should try for an unsecured business credit card before applying for a secured account.
Here’s how a typical secured business credit card account works: you supply the bank with collateral in the form of cash. Your credit limit is set to whatever your collateral deposit is, so if you deposit $10,000, your biz credit line will be $10,000. The bank may or may not pay you interest on your deposit, and the only time you’ll be able to access the collateral deposit is if and when you close the account.
An unsecured business credit card, on the other hand, works like a consumer credit card in that the bank does not require any collateral. The bank sets your credit limit based on your income, your personal and business credit history, and other factors like current credit market conditions. If you default, the bank will do its best to ruin your personal and business credit ratings, but it won’t have any right to take your house, car or any other personal asset.
Subscribe 
