At Revenue Growth Masters, one of the things that we pride ourselves on, is the ability to provide our clients and friends with not only useful information and services, but additional third party services that we use and would find useful to you and your business. One of the service areas that we find is not very effective for new business startups as well as established small businesses is the access to financial services.
We recommend that when you start researching small business financial services, that you must be very cautious when you search for loans and lines of credit on a search engine because you will get blasted with not only true genuine credit organizations, but you will be also given ads and related links to subprime lending as well as services from people that may not have a strong financial backbone or the support of a bank.
As a small business owner or someone who is going through a start-up, having access to capital funding is essential for your business. Whether you go the route of an SBA loan, your local bank with a line of credit, or a credit card; most options will require you to provide a personal guarantee instead of a business guarantee. So what is the difference?
A personal guarantee is simply saying that they are going to attach whatever line of credit, loan, or credit card you open to your personal credit report. A business guarantee, will be attached to your business credit. One of the sad realities is that an order to get a business guarantee, a majority of these organizations will require months of bank statements, a ton of documentation, a certain level of annual revenue or sales, and much more. That is not friendly to small business!
Recently, I came across an ad on Facebook targeting small businesses with a credit card allowing a credit limit between the ranges of $200 to $5,000. I saw a number of comments of people wanting to know whether it was a personal guarantee or not? And after seeing several responses from this respective company, in fact it was not a personal guarantee, but it truly cater to the needs of a small business. A line of credit with a Visa card for specific business expenses. I researched the company and found it to be legit, backed by a FDIC insured Bank.
I went and applied for the card and got approved within an hour or so of submitting my application. Now I will tell you that they will ask for your personal social security number and your date of birth, but that is the financial government requirement to prevent money laundering and illegal actions. They use it for verification purposes only, but your personal credit is not touched.
If you are a small business looking for a line of credit for business expenses only, please go to hatchcard.com and fill out an application. I have used them for over a month now and am completely impressed with their product and their support. And just so you are aware, the credit cards are backed by Sutton Bank, insured FDIC. I am not getting endorsed or receiving compensation for this post, as I want you to have access to this great service that I use. Feel free to tell them we mentioned it to you!
We wish you a Happy New Year and hope that this is a great step in adding some financial tools to your small business purchasing power and establishing business credit!