If you are looking to establish or re-establish your business credit, secured small business credit cards may be for you. There are differences between an unsecured credit card and a secured credit card as well as other credit options. Read on before you apply for a secured credit card.

Secured small business credit cards usually require the cardholder to open a special savings account and make a specific minimum deposit before the credit card can be issued. Some secured cards will only extend credit that is equal to the amount deposited into the account. There may also be higher rates and fees associated with a secured business credit card account such as:

• Application fees
• Higher interest rates
• Annual fees

By using a secured small business credit card, you may be eligible for certain benefits not offered to people with personal secured credit cards. Benefits for small business owners may include:

• Protection from unauthorized transactions
• Theft and damage coverage
• Extended warranties on business equipment
• Discounts offered through the credit card issuer
• Travel insurance
• Auto rental insurance
• Spending reports
• Overdraft protection

The following companies offer secured credit cards to small business owners looking to establish or re-establish their credit:

• Wells Fargo
• Bank of America
• Orchard Bank

The owner of a small business may have poor credit or they want to establish credit for their business. A poor credit rating or a lack of credit history can affect a person ability to get the credit they need. A solution for this is to open a secured credit card account.

A small business that has suffered financial setbacks that required them to settle accounts or declare bankruptcy may find themselves needing credit again once they are back on their feet. A secured account can help them re-establish their credit.

A secured card may not be the solution for every small business, but it is a way to establish or re-establish credit.

A small business owner may need credit for a variety of reasons:

• To buy business equipment
• To pay for business trips and other business expenses
• To easily track expenses

There are other ways to get credit. These options may have lower fees than a secured credit card, and should be explored before applying for a secured credit card.

Starter unsecured cards are perfect for new small business owners that have good personal credit. Many credit card companies are willing to open business accounts for people in this situation. The following companies offer starter unsecured business credit cards:

• Chase