At a stage in life where starting up your own business seems to be the best option; but, bank loans are not easy to come by. Also, the risks involved in setting up one’s own business are too many. Add to that the amount of hard work, dedication, time and capital required to sustain it. This is where a small business micro loan visa card comes in handy. It may not help in other matters, but a small amount of your worries regarding the capital are taken care of by providing a small loan.
The small business micro loan Visa card seems to be a normal credit card. But look deeper and you’ll realize that it is the gateway to accessing a loan through a credit account. The nature of your business is therefore required to be mentioned during the application process. This money can then be used for covering any type of expenses related to the business. With loans through the bank or through Small Business Administration taking months to come by, the card is perfect for those with a need for urgency or for more capital to meet a client’s demands.
The card has certain specifics which need to be understood. Its maximum limit is $750, so it is not a huge burden on the business in terms of repaying it. The credit requirements are relatively more lax as compared to other traditional offers. The other pros with the card are that applying is very easy. Just furnishing one’s named, business, tax id number and business banking information is all it takes to apply for it. The approval process is done rather quickly as well. Once the approval is granted, one can enjoy online banking seven-two-four. Then, the money from the loan can be used in the business in many ways including unforeseen expenditures which may crop up at the last moment or may not be expected at all.
The small business micro loan Visa card also comes with a few cons. Firstly, the APR is 23.99.There is an account origination fee as well as monthly maintenance fees. The origination fee is payable only once at $125. The monthly maintenance fee comes out to $119.40 annually. Any add on card would also draw $30. At the time of activation, the total amount charged to the account would, therefore, be $134.95.this figure includes the account origination fee and the first monthly maintenance fee. This is reflected as the difference between the credit limit and the available limit in the account.
With all these figures in mind and all the expenses accounted for, it will be much easier to take a card to tide over the initial problems of acquiring a loan.