Best Business Secured Credit Cards for Startups

The best business secured credit cards are ones issued to a business. However, a business credit card is different from a typical business credit card. The secured credit card requires an upfront cash deposit.  This becomes your credit limit, and if you fail to pay, the issuer can hold your deposit. Also, if you want to know whether the card offers rich features or has annual fees, don’t worry. 

In this comprehensive article, we will discuss its benefits and things to consider before applying. Therefore, stay with us to know more.

Best Secured Business Credit Cards

Below, we have listed some of the best business secured credit cards in the U.S. Please have a look at them to grab the best deal. 

1. Bank of America Business Advantage Unlimited Cash Rewards Mastercard

• The card required a minimum deposit of $1000. This deposit becomes your credit limit. 
• The Card comes with no annual fee.
• Offer 1.5% cash back on all purchases, among the highest rewards rates for secured business credit cards. 
• Considered ideal because of its best combination of no annual fee, good rewards, and business credit building. 
• The card is considered ideal for the starter, sole proprietors, or small teams who are looking to build business credit while still setting value for their everyday expenses. 

• Pros
  • Comes with no annual fee
  • Helps to build a credit score.
  • Offer an easy-to-understand rewards structure. 
  • Considered good for a small team and a new business
  • Comes with no foreign transaction fee on some versions

• Cons
  • The card requires a minimum security deposit.
  • This is a secured card, not unsecured. 
  • Comes with limited premium offers. 
  • Not ideal for high-spending businesses. 
  • The cost is higher for any missed payment. 

• Best For
  • The card is considered good for new businesses, sole proprietors, and cost-conscious owners who want simple flat-rate rewards.  The card suits those who are building business credit while earning a good cashback on everyday spending

2. Valley Visa Secured Business Credit Card

• The requirement is a deposit amount of 110% of your desired credit limit. 
• Comes with no annual fee. 
• Offer unlimited 1% cashback on purchases. 
• Consider an ideal for a small business with larger periodic expenses. 

• Pros
  • Comes with no annual fee. 
  • Offer unlimited 1% cashback.
  • Provide flexible deposits based on desired limits.
  • Help to build your business credit by using it responsibly. 
  • The card is good for steady spending. 

• Cons 
  • You need to deposit 110% of the desired credit line. 
  • Comes with lower rewards rate compared to competitors.
  • The credit limits are tied strictly to deposit size.
  • Offer fewer additional benefits compared with unsecured business cards.  
  • The card is not considered good for large purchases without higher return. 

• Best For
  • The Valley Visa Secured Business Credit Card is considered best for the small business with steady expenses that want simple 1% cashback with no annual fee. The card best suits startups and credit-building companies that prefer straightforward rewards and are ready to deposit 110% of their desired limit.

3. FNBO Secured Business Card

• The card comes with a deposit amount, which is typically between $2000- $10,000. 
• Your security deposit determines the limit. 
• Comes with a $39 annual fee. 
• The card has access to business credit reports, fraud protection, and potentially interest earned on the deposit. 
• Consider good for those who want structured deposit levels and are ready to make a slightly larger deposit for stable credit building. 

• Pros
  • Offers business credit reporting.
  • The card helps to build or improve business credit.
  • Offer protection for safer business use.
  • May earn interest on the deposit in some cases. 
  • Idea for the business seeking stability and responsible credit growth. 

• Cons
  • Comes with an annual fee ($39).
  • Requires a high minimum deposit.
  • Offer no cashback or rewards. 
  • Comes with limited perks. 
  • Remember, your business funds tied up as collateral may reduce cash flow. 

• Best For 
  • The card is considered good for business owners who are looking for structured deposit options, reliable fraud protection, and strong business credit reporting. The card suits those companies, ready to place a higher deposit and focusing on long-term stable credit building rather than rewards.

4. Charity Charge Non-Profit Secured Business Card 

• Offer cards only to non-profit organizations. 
• The card security deposit, which can be $5000.
• Comes with no annual fee. 
• Considered ideal for a non-profit organization. 

• Pros
  • The card is especially designed for nonprofit organizations.
  • Comes with no annual fees.
  • Helps nonprofit organizations to build or establish business credit. 
  • Secured structures are easier to qualify for compared to unsecured cards.
  • Simple and straightforward card. 
• Cons 
  • The card comes with a high security deposit ($5000). 
  • Comes with no cashback or rewards.
  • The card is not available for regular business. 
  • Comes with fewer premium perks compared with other unsecured business cards. 
• Best For 
  • The card is considered ideal for nonprofit organizations that want to build business credit without any annual fee. Moreover, the card is ideal for building credit history under your entity.

• Best For

These were some of the best business secured credit cards that come with different features and fulfill your requirements. You can go with the best one according to your needs.

These were some of the best business secured credit cards that come with different features and fulfill your requirements. You can go with the best one according to your needs.

Who Should Consider a Secured Business Credit Card 

Below, we have listed everything that will help you understand who should go for the best secure business credit cards. Please have a look at it. 

1. Launching a New Business – If you are launching your new small business or startup and you have no business credit history, going with a secured business credit card can be an ideal choice for you. 
2. Low Credit Score – If your credit score is low or poor for unsecured business credit cards, you can go for secured business cards. 
3. Want to Demonstrate Financial Responsibility – If one wants to demonstrate financial responsibility under their business name.

These are some of the points that one should consider before applying for the best business secured credit cards. Remember, the secured cards are often an intermediate step. If you use it responsibly, it can help you to pay the way for stronger, unsecured credit options as your business grows.

Things to Consider Before Applying for a Secured Business Credit Card

There are some things that one should consider before applying for any secured business credit card— 

1. Credit Limit—Before stepping ahead, check if the card’s limit matches your business needs. Remember, some secured business cards require a security deposit that sets your limit. 
2. Interest Rates (APR)—Always compare annual percentage rates to avoid high-interest costs on unpaid balances. 
3. Reporting to Credit Bureaus—Check whether the card reports to the major business credit bureaus or not. To build credit, it is necessary to report to credit bureaus. 
4. Fees and Charges—Before applying, look at the annual fee, late payment charge, and processing charges. 
5. Rewards and Benefits—Check whether cards offer cashback, travel points, or business-related perks. 
6. Customer Support—Make sure the card issuer provides reliable support for business-specific needs. 
7. Eligibility Criteria—Before applying, check if the card requires a minimum revenue, time in business, or personal credit score. 
8. Conversion Options—There are some secured cards that can convert to unsecured cards after responsible use. 

These are some of the important points that everyone should consider before applying for any of the best business secured credit cards.

Benefits of  the Secured Business credit cards

The best secured business credit cards offer various benefits to their users. Below, we have listed some of the benefits for you. Please have a look at it. 

1. Easy Approval, even with weak or no credit history 

• The card requires a cash deposit as collateral, which is why lenders have lower risk. Which means businesses with little or poor credit have a better shot at approval. 
• Its easy approval makes a good entry point for the new entrepreneurs, or for small businesses that don’t have any credit history yet. 

2. Help to build or rebuild a Business Credit Profile. 

• Paying on-time payments on the best business secured credit cards allows you to build a separate business credit history under your company’s name.
• Having a secured card can make your business more eligible for better financing.

3. Allow You to Separate Business and Personal Finances

• Using a dedicated business credit ensures that business and personal expenses are recorded separately. This makes your work clearer and simplifies accounting, tax filing, etc. 
• Apart from this, using a dedicated account reduces the risk of mixing personal and business finances. 

4. Potential To Graduate To Unsecured Credit

• Once you use the card responsibly, many secured business credit cards offer you the opportunity to upgrade to an unsecured card. 
• Once upgraded to an unsecured credit card, you will get higher credit limits and more flexible financing. Also, your earlier deposit may be returned. 

5. Gives Access to Credit and Purchasing Power

• A secured business card offers you a revolving line of credit, which means you can make business purchases even if you don’t qualify for the unsecured card yet. 
• This can be useful for bridging gaps when your expenses arise before your revenue comes in. 

These are some of the benefits of the best business secured credit cards. 

Conclusion

If you are looking for the best business secured credit cards, remember that they are only available. To get the best, you will have to navigate the best option that is available. Moreover, not every secured business card can offer you what you are looking for. Before stepping ahead with any card, check its features or whether it fulfills your needs. 

In addition, decide that you are looking for a card with no annual fees or just want the best card that can align with your requirements. These simple and basic understandings can get you the best deal easily.

Frequently Asked Questions (FAQ’s)

creditworld

Hi, my name is Sachin. I am currently studying Economics in college and have a strong interest in personal finance topics like credit cards and loans. Along with my studies, I work as a content writer, where I create educational and easy-to-understand content to help readers better understand financial topics and make informed choices.