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Small Business Credit Card Update

A recent Wall Street Journal article notes that it may become easier to get an offer for a professional credit card, perhaps even if you don’t own a business. Access to credit is good news for small business owners strapped for cash in this economy. However, it is worth noting that cards for small businesses were not included in the recent Card Act.

Therefore, unlike personal credit cards, these credit cards can still have low introductory rates that spike if you’re slightly late with payment or charge high fees for going over the credit limit. The agreement can be altered without prior notice and card issuers can shorten the billing cycle.

While credit cards have advantages, credit card companies may be using the professional card loophole to make up for lost profits, making it worth considering all the cash flow options before signing up.

A better solution for businesses may be a prepaid credit card, or a corporate prepaid card, like the PEX Card service. Unlike credit cards that have open spending up to the credit line, business pre paid cards offer greater control over corporate spending because cards can be set to zero balance and are loaded only as necessary.

For a tutorial about how our corporate prepaid cards work, visit: www.pexcard.com and click the video.

Toffer Grant is PEX's Founder and CEO. He founded PEX in 2006 as a prepaid card solution for small businesses. His background in the prepaid industry began at Clarity Payment Solutions, where he initiated 65 prepaid card programs in consumer, corporate, and emerging verticals of the prepaid card industry. 

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