Small Business Credit Card Owners Still at Risk
Individuals looking to find credit for small businesses should be wary, Bloomberg Businessweek reported. In 2009, the Credit Card Accountability, Responsibility and Disclosure (CARD) Act went into effect to help regulate rising interest rates and dishonest practices by credit card companies. This act benefited the American people at large, but small business owners were not given the same relief, as the legislation did not apply for small business credit cards. This has left entrepreneurs at risk for high interest rates and rising costs levied by the biggest names in the industry.
Today, little has changed, making small business credit cards difficult to obtain and even more challenging to pay off. For example, if a company has two credit accounts at different interest rates, a bank may apply a payment to the account with the lower interest rate, making it extremely difficult to fully pay off a balance.
For entrepreneurs hoping to expand their companies and increase revenues, small business loans and equipment financing may be a better route to go. National Funding provides business owners with routes to financial success, as equipment leasing and credit options are even available to companies that may not qualify for bank loans. Leasing allows business owners to keep cash on hand, rather than fully investing in expensive devices.