Melio Payments Review: Can It Make Business Payments and Getting Paid Easier?

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Melio Payments Review

Any business requires managing finances, but it can be challenging. With the complexities involving accounts payable and receivable, keeping up with the payments is often difficult. Thankfully, there are solutions that you can try to streamline your finances and take control of your cash flow. Consider looking into Melio Payments, a platform that offers a comprehensive range of features, from making bill payments to invoicing and payment processing.

In this review, we will explore the platform’s features, benefits, and workings. Read on to determine whether it is what you need to optimize your business’s financial operations.

Contents

  • What is Melio Payments?
  • Melio Payments Key Features and Functionalities
  • The Benefits of Using Melio Payments for Your Business
  • How Melio Payments Works
  • Accounting Software Integration
  • How Much Does Melio Cost?
  • User Experience and Reviews
  • Conclusion

What is Melio Payments?

Melio Payments is a platform created by a financial technology company with the same name. This platform is designed for businesses to manage their accounts payable and receivable processes. If you utilize the platform, you can take advantage of various features to help you manage your finances more efficiently.

Melio Payments Key Features and Functionalities

When you sign up for Melio Payments, you can get a suite of financial tools and services that make your accounts payable and receivable processes much more straightforward.

melio chose when and how to pay vendors

For example, Melio allows you to pay your bills electronically. You can accomplish this task using bank transfers or debit cards. The best part about this feature is that it does not require the merchant or vendor to accept electronic payments. You can pay through the payment method you choose without actually using it. This means you do not have to write and mail physical checks, which can save a lot of time and even decrease administrative overhead.

Here are other key features that you can get out of Melio Payments:

Invoicing: You can use Melio to create and send professional invoices directly to your customers using the platform itself. To do this, log in to your Melio account and go to the Invoices tab in the dashboard. From there, you can access the existing invoicing features, which include creating a new invoice. You can then fill in the invoice details, including the recipient’s contact information, date, and number. You can also add line items in the dashboard with their own costs and quantities. You can then set the payment terms for the invoice, including the payment method and due date. Before sending, make sure to review and confirm.

better cash flow

Scheduling of Payments Including Recurring Payments: Melio allows you to set up recurring and one-time payment schedules in advance conveniently. That way, you can ensure all your bills are paid on time. This feature also helps manage cash flow, as you can plan and be sure that the funds will be readily available when the due date comes. You can set up recurring payments, such as rent and utilities, on the platform. They will automatically be paid on a weekly or monthly basis.

Accounting Software Integration: You can use Melio together with your favorite accounting software platform. It is popular with Xero and QuickBooks, two of today’s most used accounting solutions. Melio allows you to sync your financial data between the accounting software platform and the payment platform. That way, these platforms can automatically update the payment information and invoices. This saves you time as you no longer have to enter financial data manually. The integration with Xero or QuickBooks and other accounting software will be further explained later in this blog.

Management of Your Vendor Transactions: Melio has tools that allow you to manage vendor transactions easily. These tools are designed to help you gain better control and visibility of your accounts payable. For example, you can use Melio to centralize vendor information on the platform. This means you can manage and track transactions when dealing with different vendors, as you can quickly add new vendors and update vendor details, among many other features.

Payment Tracking: A crucial feature that you can find on the Melio platform is payment tracking, which gives you a real-time glimpse of the status of the payments you have made. You can also look at your payment history in the dashboard, which has detailed records of your past payments, including payment dates, recipients, and amounts. Tracking of payment involves not just the past but also the future. You can have Melio give you payment reminders to stay on top of your payment obligations, helping you avoid penalties and late fees.

Melio is excellent for businesses with more than one department or user who may oversee the payment processes. The platform has customizable approval workflows where you can create custom approval chains that outline the approval sequence for your payments. It makes it easier for your departments or users to determine who should approve payments in the correct order to complete the process.

The Benefits of Using Melio Payments for Your Business

The primary purpose of Melio is to simplify accounts payable processes. It provides robust tools enabling users like you to create invoices, schedule payments, and manage vendors in just one simple and easy-to-use platform.

Here are the other advantages of using Melio for your business:

The ability to set up payment schedules helps improve your business’s cash flow management. By maintaining control over the timing of your payments, you can be sure that your bills are paid on time.

You Might Also Like: This is How to Leverage Business Credit to Transform Your Life

The same feature as above also helps extend payment terms with contractors, vendors, or suppliers. That’s why payment scheduling is beneficial for your business: You can have more time to pay your bills while preserving working capital.

control payments

Unlike other platforms or methods of payment, you do not have to worry about paying your dues early. Early payment discounts from vendors may be available, and you can take advantage of them. These discounts can save money on your expenses, which is useful for improving cash flow.

Repetitive tasks are time-consuming. Eliminating them and relying on Melio for invoice creation and payment reminders can free up your employees’ time to focus on other strategic activities that can help drive business growth.

Melio makes invoice management easy. The platform allows you to create and customize invoice templates and include line items. You can also use Melio to specify payment terms, which makes it an excellent solution for your business and customers.

Apart from the benefits mentioned above, Melio Payments can lead to significant cost-saving benefits and improvements in efficiency for your business. For instance, you can save on administrative overhead by automating repetitive tasks.

Processes that may use paper can also be eliminated since Melio promotes the digitization of your accounts payable and receivable procedures. That means you no longer have to deal with paper-based checks, receipts, and invoices, should you choose to do so.

Late payments are a no-no for businesses, especially those wanting to save money. You can preserve your working funds by avoiding late fees and penalties due to missed or delayed payments.

Every business needs good relationships with vendors and customers to thrive. When you have streamlined accounts payable and receivable processes, you can forge stronger working relationships. That’s mainly due to your professionalism, which involves prompt payments and efficient invoicing. These can help improve communication and trust with other parties. It is one of the keys to building long-term partnerships.

Finally, the updated platform allows users to pay using bill-by-ACH bank transfer or card. Vendors are also no longer required to sign up, meaning you can pay them however they want with Melio.

How Melio Payments Works

Just like with any other payment platform, you must first sign up for an account here: https://app.meliopayments.com/register. Signing up is easy and takes only a few minutes. It only asks for your email address and password. You can also use your Google or Intuit account (for QuickBooks users).

sign up for melio payments

After verifying your email address and logging in to your account, the platform will ask you to provide your business information, including whether you are a small business that wants to use the platform to pay vendor invoices or an accounting firm.

tell us who you are

Aside from your email address, Melio also requires a phone number for verification and business information like business name, address, and industry. You can schedule a payment once you’re all set.

melio get setup

Before you can begin paying, you will be greeted with an empty dashboard.

melio pay vendors

One of the first things you must do is go to Settings and then the Payments and Billings section.

payments and billing - melio

Click Payment Methods, where you can manage all your linked accounts and add a new payment method. You can then customize your payment preferences and select your preferred payment method. Your dashboard is also where you can add vendors and customers, create invoices, and schedule and track payments.

Melio supports different payment options, accommodating almost every business need and preference. You can use it to pay merchants or get paid via:

  • Bank transfer (ACH
  • Debit card
  • Credit card
  • Check
  • Wire transfer

Accounting Software Integration

In the platform settings, you may want to link your accounting software to Melio.

link accounting software and sync and import

Doing so allows automatic financial data syncing between Melio and the accounting software, QuickBooks, Xero, or others. When you create invoices, they are recorded in the accounting software so you have updated and consistent financial records. The same applies to payments made through Melio, simplifying the process and guaranteeing all payments are documented automatically.

How Much Does Melio Cost?

Melio is free with no subscription cost. Here is an overview of the fees and prices you must be aware of:

  • Free standard payments via ACH bank transfer
  • $1.50 per check for a paper check
  • 1.5% (maximum of $50) for each instant payment made
  • $20 per transaction for international payments in US dollars
  • 2.9% processing fee for credit and debit card payments
  • International payments using Mastercard credit cards will carry a 2.9% fee on top of the $20 fixed fee.

User Experience and Reviews

Melio has a fairly good amount of satisfied and positive testimonials on many review sites:

GetApp: 4.2/5

get-app-reviews-of-melio-payments

TrustRadius: 3.9/5

melio review stars rating

Capterra: 4.2/5

reviews of melio from capterra

Trustpilot: 4.3/5

trust pilot reviews of melio

All in all, Melio has great reviews, mostly commending its customer service, bill pay with QuickBooks and convenience. The platform is easy to use and understand. Plus, you can talk to Melio’s support team via email, phone, or live chat. You can also speak to a dedicated account manager or read more about Melio through FAQs and the Knowledge Base.

Conclusion

Melio Payments is a comprehensive financial management platform for optimizing and simplifying tasks in managing and processing invoices and payments. It is a secure, user-friendly business solution with an intuitive interface and several useful features. With responsive customer support, multiple payment support, and integration with accounting software, Melio is certainly one of the top platforms for making financial management tasks easier.

Can you transfer a personal credit card to your business?

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can you transfer personal credit card to business

In the world of business, the lines between personal and business finances can sometimes blur. This is particularly true during the early stages of entrepreneurship. Many business owners rely on credit cards or funds to support their ventures. Unfortunately, this approach poses several challenges, especially relating to increased personal liability and potential tax issues down the line.

While it is true that you can use your personal credit card for business expenses, have you considered transferring personal debt to your business? This post explores the distinctions between personal and business credit and offers practical steps to transfer personal credit to your business effectively.

Personal vs. Business Credit: What are the Differences?

To understand the process better, let us quickly examine the differences between personal and business credit. Here are some facts about personal credit:

  • Used for personal expenses like buying a car and home
  • Personal liability for any debts incurred
  • Connected to the Social Security Number (SSN)
  • Reported to consumer credit reporting agencies like Equifax, TransUnion, and Experian
  • Credit scores range from 300 to 850
  • Subject to consumer protection laws, including the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA)

Meanwhile, here are some things to know about business credit:

  • Used for business expenses like purchasing equipment and inventory
  • Utilized for managing operational costs and cash flow
  • Tied to Employer Identification Number (EIN) or Tax Identification Number (TIN)
  • Liability for debts is on the business and not the individual owner
  • Reported to business credit bureaus like Dun & Bradstreet, Equifax Business, and Experian Business
  • Credit scores range from 0 to 100 (or 0 to 300, depending on the credit reporting bureau)

Payment history and length of that history, credit utilization, and types of credit used are some of the factors that affect both personal and business credit.

Can You Use Your Personal Credit Card for Business Expenses?

Keeping track of expenses can be challenging, so some people opt to use a personal card for both personal and business-related purchases. To address the question above, yes, you can use your personal card for business expenses.

You might choose to do so for several reasons, including the enhanced protection offered by the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act). This legislation provides better safeguards for cardholders by requiring written disclosures and imposing limits on fees and interest rates.

Why Transfer Your Personal Debt Over to Your Business

While you can use your credit card for business expenses, it lacks the same legal protections as business credit. If your company is set up as an LLC or a corporation, you automatically obtain legal protections based on your chosen business structure. However, intertwining your personal and business expenses can diminish or even nullify those protections you would otherwise enjoy.

If that’s not convincing enough, here are additional reasons why transferring personal credit to business is a smart financial move:

  • If there are ever any legal or financial issues, minimize your personal financial risk, even as the business owner.
  • Transferring personal debt to business credit helps establish your business’s credit profile and history, which is crucial for accessing credit lines and loans.
  • Business credit, when used for business expenses, aids in simplifying tax reporting. This activity can also maximize tax deductions, potentially reducing tax liabilities and taxable income.
  • Building strong credit for your business shows professionalism and credibility as it is a demonstration of how responsible and stable your business is. These traits are essential to other entities you will likely work with, such as suppliers, partners, lenders, and even your customers.
  • Separating business from personal credit allows access to more credit and financing options based on your company’s creditworthiness. That way, you do not have to rely solely on personal credit limits, which are often lower.

Creating a clear distinction between your personal and business credit profiles is significant in defining the company as a separate legal entity. By using business credit accounts, such as business credit cards or lines of credit, when incurring business-related expenses, you begin to build your company’s own credit history. However, just like personal credit, you should always make on-time payments and manage your business credit responsibly to create a positive credit history for your company.

How to Transfer Personal Credit to Business: The Different Methods

One standard method for transferring personal credit to a business is to apply for business credit cards, which should be under the business’s name. Doing so lets you establish your business’s credit history while separating its usage from your credit cards. Other ways to go about it include the following:

  • Applying for business lines of credit to access funds for your ongoing expenses
  • Applying for business loans from banks or alternative lenders when in need of funding for expansion and other more significant investments
  • Establishing trade credit accounts with vendors and suppliers, such as Net 30 vendors, that allow your business to make purchases on credit
  • Using alternative financing solutions specific to businesses, including merchant cash advances and invoice factoring
  • Exploring rental or lease agreements for vehicles, real estate, or equipment to build a credit profile

It may also be an option to cosign with a personal guarantee, mainly if you first must use personal credit to secure business loans or business credit cards. This method, however, involves personal credit. Nevertheless, it still contributes to building your business’ credit history.

With the choices above, picking the proper method for you may be a little confusing. The best way to do it is to select the option based on your creditworthiness and business requirements. For example, you can consider your short-term and long-term goals, such as whether you want to finance immediate expenses. Perhaps you wish to build credit for the future or invest in growth opportunities. Whatever your goal, you can align it with the best method for your business.

Other factors to consider include:

  • Your business’s creditworthiness
  • Payment history
  • Debt-to-income ratio
  • Credit score
  • Existing credit accounts, if any
  • Type and size of funding you need
  • Interest rates and fees
  • Repayment terms

The method you choose can impact your credit and liability as an individual, such as if it requires cosigning or a personal guarantee, so consider that as well. It is also helpful to assess the method’s long-term sustainability, especially if it will benefit your business’s financial growth and stability in the long run.

Steps to Take

Regardless of the method you see fit for transferring personal credit to business credit, the entire process involves a few steps, which often include the following:

If you have not done so, you will first have to incorporate a legal business entity. This means picking whether you have a partnership, a Limited Liability Company (LLC), a corporation, or any other type of business structure. You will also have to register it with the local and state government. From here, you can obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS).

You will then need to open a business bank account in the name of your business. This account will be used for all your business-related purchases and transactions. That way, there is a clear separation between your personal and business expenses.

The next useful step is to have a business credit card. Make sure that you do comprehensive research by comparing various card options. Don’t just look at offers from banks; explore other products from financial institutions and credit unions. When applying, you must use the legal name of your business and provide its EIN and other relevant information. Once you have a credit card, you should always pay your debt on time whenever you use it for business expenses. This is the key to establishing a positive credit history for your company.

business credit card

Some businesses may skip this step, but it is helpful in many ways. You need trade credit accounts as you continue to grow as a business. Be sure to foster relationships with trade partners and suppliers that use trade credit terms. You may also request to open a trade credit account under your business and use it for purchases on credit. Once again, you need to pay net 30 invoices promptly, which will show suppliers and vendors your creditworthiness. It also establishes trust, making it easier for you to access larger financing in the future.

You can apply for lines of credit or business loans from online lenders or banks using your business information. At this stage, you will typically be asked to provide financial data, such as a business plan, revenue, and cash flow. Once approved, you can use the lines of credit and loans for operational, investment, and expansion investments. Just like other debts, you should always maintain responsible repayment to help build your business’s credit profile.

At this stage, you can use the balance transfer option with the new business credit card / business line of credit to transfer your debt over. Some banks will also allow you to use “convenience checks” where you can write a check using your business credit card available balance to your personal credit card company to payoff the balance (and avoid a cash advance fee). You can also look into programs like Plastiq and Melio Payments to get cash off your business credit card.

Your work is incomplete, as you must still monitor and manage your business credit. It always helps to review your business credit reports regularly. If you find any errors, dispute them, as they will not fix themselves. You must ensure accuracy in reporting all your credit activities. Don’t forget to maintain a low credit utilization rate while avoiding accumulating excessive debt under the name of your business.

You might also like: Our Review of NAV, a service that boosts, tracks and monitors business credit scores

Using your business credit accounts involves being responsible for you to build a positive credit history for your company. As you keep your credit utilization low, it helps to increase your credit limits. Do so gradually as your credit history improves and your finances stabilize.

Common Pitfalls to Avoid

As the process ensues, you will realize that some difficulties may arise that could add to the challenge. Therefore, it is crucial to be on the lookout for the following pitfalls:

Many businesses fail to separate business and personal expenses, which typically leads to confusion and inaccuracies, particularly in their financial records. If there is no clear distinction between the two, tracking deductible expenses can pose a challenge, resulting in paying more taxes than you should. Always talk to a tax qualified professional when considering getting credit and moving debt from person to business.

Another issue is relying on personal credit when making business purchases. Although this is the more convenient option for some people, it hinders their businesses’ ability to build a strong credit profile.

One more problem is operating as a sole proprietorship without forming a legal business entity. Unfortunately, this approach exposes the owner to personal liability, especially given the rising business debts and obligations.

Not having a business bank account is another issue to address as you progress with the transfer. That way, you avoid complicating the accounting procedures and tax reporting, making it easier to track income and expenses.

Legal and Financial Implications to Consider

While there are benefits to transferring personal to business credit, it is vital to understand the potential legal and financial implications of the activity for both the business and the owner. These include the following:

You can get legal liability protection as a business owner when you move your personal credit to business credit rather than having it all in one account. However, you must operate as a single entity, such as an LLC, to shield your personal assets from possible debts and lawsuits.

Some lenders require a personal guarantee, particularly if you have a new business. Typically, this means you do not have an extensive credit history. With a personal guarantee, you should know that you, as the business owner, will be held liable for any financial obligations. That includes if your business defaults on credit payments.

While a personal credit to business credit transfer establishes a separate credit profile and history for your company, it can also result in negative credit activity. Late payments and other mistakes can adversely affect your business’s creditworthiness. You must continuously build and protect your credit profile so that you do not have to worry about accessing financing in the long run.

visa-credit-card

The transfer requires careful documentation and recordkeeping. Otherwise, you could risk complying with tax laws and missing proper business deductions.

Compliance with the rules and requirements is important when using business credit. It mitigates potential issues and ensures legal adherence, so be sure to be mindful of your business’s legal structure and registration. Your business must have the appropriate licenses and permits to operate legally. Talk to a representative or local authorities if you require more information.

Finally, it is valuable to understand the reporting requirements of business credit bureaus, such as Experian Business and Dun & Bradstreet. You should always have your business credit activity report accurately, including your timely payments and credit utilization, for a favorable credit profile and history.

Conclusion

Transferring your personal credit to business credit is a smart move that can yield significant benefits. The biggest benefit is the potential to improve your personal credit utilization, which can really boost your personal credit score a lot. With a distinct separation between business and personal finances, you can protect your personal assets while aiming to access financing options and build a good credit profile for your company. Take the first step toward building your business credit profile by signing up for free business credit training today!

FAQ

Why should I transfer my personal credit to my business?

It can boost your personal credit score by lowering your utilization. Plus establishing a separate credit profile for yourself and your business can give your business access to more financing options while protecting your personal assets against potential company-related debts and obligations.

How do I transfer personal credit to my business?

You can apply for business credit cards, open a trade credit account with a supplier, or apply for a business loan. Then use a balance transfer or convenience checks.

Why should you not mix personal and business credit?

It is often difficult to separate expenses, making it difficult to track expenses. This can also be a problem when reporting business credit activities. Not mixing personal and business expenses on your personal credit profile can also help with asset protection.

How do I ensure compliance with legal and regulatory requirements when using business credit?

It helps to be knowledgeable about the Truth in Lending Act and Fair Credit Reporting Act, as well as other regulations that may be specific to your business and industry. That way, compliance is much easier as you continue to grow your company. You should also spend the time to speak to an attorney and a tax qualified professional, like a Certified Public Accountant (CPA).

3 Best Business Credit Cards for a New LLC +More Resources

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Business Credit Cards for New LLC

So, you’ve started a new LLC, and you’re interested in getting business credit cards. But, since your business is new, you haven’t established business credit yet. So, what are the most promising cards for you to apply for? 

Here, I’ll tell you what cards you might qualify for (along with their requirements), and explain exactly what I would do in your position. As a new business, you don’t automatically have business credit, so you may want to establish it now. 

Recommended: Download our Free Business Credit Checklist

Here’s what’s in store: 

Now, let’s roll!

What Are Business Credit Cards? 

Before we look at the cards you might qualify for, let’s make sure you’re clear on what you want. More often than not, business owners get other spending cards confused with business credit.  

Business credit cards are revolving lines of credit that can be used for business spending. Only a percentage of the total amount spent is required to be paid each billing cycle. Business credit cards accrue debt on any balance left unpaid. 

Meanwhile, corporate cards are either prepaid or must be paid in full at the end of each billing cycle. Corporate cards typically supplement robust business expense management software and tools. 

So, if you need funding, look at the credit cards below. And, If you need expense management, consider the recommended corporate cards. 

Recommended: Corporate vs Business Credit Card: What’s the Difference? 

Can a Newly-Formed LLC Get a Credit Card? 

So, how soon can you apply for a business credit card and do brand new LLCs get business credit? 

Getting a business credit card for a brand new LLC depends on factors like the business’s creditworthiness and the personal credit history of the owners. Typically, credit card issuers have a waiting period before a new business can apply, often a few months to a year (but this isn’t always the case). 

As a new LLC, it’s important to establish a clear separation between business and personal finances by: 

  • Obtaining an EIN
  • Opening a business bank account
  • Maintaining distinct records

The likelihood of approval is higher if the owners have a good personal credit score. As the business operates and builds a positive credit history, it becomes easier to qualify for business credit cards. Check with specific credit card issuers for their policies and requirements.

You might also like: Here’s How to [Actually] Get Business Credit With Just an EIN +More Options 

Best Business Credit Cards for New LLCs

Here, I’ll lay out my favorite business credit cards for new LLCs. You’ll see a summary of each offer (why I like it) and how long your business must be in operation before you apply. 

If you can’t get a business credit card yet, and you’re in need of immediate funding, scroll down to the loans section. Or, join Business Credit Workshop to learn how to get up to $100K in business credit in as few as 30 days. 

1. Chase Ink Business Preferred

credit cards for new businesses with no credit history

The Chase Ink Business Preferred card stands out as one of the top small business credit cards, thanks in part to its impressive sign-up bonus. Although it doesn’t offer a 0% APR and comes with an annual fee, there’s significant potential for savings and rewards. If you believe your business meets the qualifications, I recommend this one.

To qualify for the Chase Ink Business Preferred credit card, you don’t need a specific annual income or business history, but your revenue should cover the minimum monthly payment. 

Other requirements include: 

  • A FICO score of 670 or higher 
  • A minimum credit limit of $5,000

Chase evaluates your application using your personal credit score, with a recommended FICO score of 670 or higher. Keep in mind that while a good credit score is important, it doesn’t guarantee approval or denial. Whether you’re an incorporated business (LLC, corporation, partnership, non-profit, etc.) or a sole proprietor, you’re eligible to apply for the Chase Ink Business Preferred credit card.

Recommended: Chase Ink Business Preferred Credit Card: A Deep Dive Analysis 

2. Bank of America Executive Explorer

Startup business credit cards for new llc

Next, consider looking into the Bank of America Executive Explorer card. Despite its $375 annual fee, the card’s perks more than justify the cost. For instance, you receive a $600 Lounge Access credit annually and a $100 Airport Fast Track credit every four years. Moreover, you gain access to the Benefits on Us and Dinova Rewards programs. 

While a new LLC could be approved, it’s important to note that this isn’t a revolving credit line; rather, it functions as a “corporate credit card” that must be paid in full. To qualify, you must be an executive or owner of your company, and while there’s no minimum business history requirement, having an excellent credit score is crucial. 

Owners with FICO scores of 740 or higher stand the best chance of getting approved for Bank of America business credit cards.

Recommended: What is the Best Bank of America Business Credit Card for Your Needs? 

3. Marriott Bonvoy Business

Best business credit cards for new llc

I believe Marriott boasts one of the top hotel rewards card programs. The appealing part is that while you travel for work, the Marriott Bonvoy Business credit card helps you build business credit. If you meet the criteria, applying for and using this card is a smart move. 

Keep in mind that the Marriott Bonvoy Business Credit Card is exclusive to business owners and authorized representatives with a credit score of 700 or higher. 

Approval considerations also include factors like: 

  • Annual income 
  • Existing debts

Start earning travel rewards on your next hotel stay by applying now.

Recommended: Marriott Bonvoy Business Credit Card Review & Comparison 

Corporate Cards to Consider

If you’re looking for a spend card mainly to help with expense management, and you’ve got some revenue to back your account, a corporate card might be a better choice at this point – especially if your LLC is brand new, and your credit hasn’t been established. 

Now, my favorite thing about modern corporate cards is that many of them offer cash back on spending (some more than others). So, with these cards, you have a chance to earn on transactions that you or your employees make. Cool, right? 

Here are the two cards I would recommend…I’ll explain why.  

Recommended: 7 Best Cash Back Corporate Credit Cards to Explore in 2024 

1. Bill Spend & Expense (Formerly Divvy)

business credit cards for new llc without personal guarantee

Bill Spend & Expense, formerly known as Divvy, comes with its own set of advantages and disadvantages. If you’re considering whether to take advantage of this offer, reflect on the following questions:

  • Is your monthly business spending more than $5K?
  • Does your business have multiple staff members with spending privileges?
  • Can you pay your expenses in full each month?

If you answered “yes” to these questions, the Bill Spend & Expense card could be an excellent fit for you. Now, to meet eligibility requirements, a business owner must have a minimum personal credit score of 580, and having a score of 640 or higher increases the chances of approval. Additionally, a higher annual revenue enhances the likelihood of approval.

I personally highly recommend checking it out, specifically for the tiered cashback rewards. Sign up on the Bill.com website to find out the credit line you may qualify for.

Recommended: In-Depth Divvy (BILL) Credit Card Review: Read This Before You Apply 

2. PEX Expense

startup business credit cards ein only

PEX is another solid corporate card with some cool features, making it a good pick for businesses and nonprofits looking to manage expenses smoothly. It’s got prepaid and dynamic credit cards, throws in 1% cash back, and has a handy app that fits different industry needs.

The user experience is made even better with seamless integrations, virtual/physical cards, and customizable controls, backed by PEX’s positive company vibe.

While PEX is a great choice, if you’re running a startup or an e-commerce gig, you might want to check out alternatives like Brex, Bill Expense, or Shopify Credit that could be more spot-on for your needs. Always a good move to weigh your priorities and compare a few options when it comes to any financial stuff.

Oh, and PEX cards are designed for businesses and organizations, and the cool part is you can get them without worrying about minimum funding requirements—they can even be issued inactive. Nice, right?

Recommended: The PEX Card: Is it the Best Corporate Card for Your Business? 

Best Loans for New Businesses

Now, if you’re looking for the funding aspect of a credit card, but you haven’t established business credit, you still have options. While your repayment terms aren’t ideal on most of the options available to you right now, you can use one of these offers in a pinch. 

Note: I don’t typically recommend factoring-type financing or loan brokers. The problem is that the rates are typically very high. Still, I know that sometimes you gotta do what you gotta do to pay for emergencies to seize an opportunity to grow your business. I have thoroughly reviewed the following loans, and I’ll tell you the truth about them. 

Recommended: How to Get an SBA Business Loan 

1. Credibly

Business credit cards for new llc ein only

Credibly’s rates, covering everything from interest and factor rates to origination fees and admin fees for merchant cash advances, lean towards the higher side. If your business is on the newer side, your credit isn’t stellar, and you’re pulling in at least $15,000 per month, Credibly might be a viable option for securing the funding needed to keep your business going or expand. 

It’s a relatively young company, but it’s legit, with enough satisfied customers indicating it’s doing something right. However, I won’t strongly recommend their loans unless your business is in a tight spot, and if it is, be cautious about the personal guaranty—it can be risky. 

Before committing to Credibly or any other company, it’s a good idea to shop around for quotes. You might be able to find comparable loans with better rates, especially if your business is more established or you have a solid credit score.

Recommended: A Deep-Dive Credibly Review: Is Their Financing Right for You? 

2. LenCred

business credit cards for new llc with bad credit

If you’re in need of working capital or startup funds, and you’ve got solid credit but aren’t in a position for traditional funding options, LenCred could be the solution you’re looking for – It’s especially handy if you’re not keen on unconventional routes like crowdfunding and are okay with dealing with a 9% origination fee. 

LenCred’s financing services might just be the boost you need.

However, if you’re aiming to build up your business credit and prefer securing funding without hefty origination fees, LenCred might not be the best fit. Since they don’t use your business credit profile in the funding process, their lenders are unlikely to report to the business credit bureaus. So, it’s a trade-off to consider.

Recommended: This is the Truth About LenCred’s Small Business Financing 

Frequently Asked Questions

What is the fastest way to get business credit for an LLC? 

You first need to make sure the owner’s personal credit is in check and the business is properly established for “credit readiness.” Then, open a bank account and establish relationships at the bank. After that, make sure the business has a DUNS number, establish your first tradelines of credit, and pay your accounts at the right time. Finally, you just need to monitor your business credit before you apply for a new loan or line of credit. 

Download our free Business Credit Checklist to start building business credit. 

Can a single-member LLC build credit? 

Yes, a single-member LLC can build business credit with an EIN and a DUNS number. 

Can you get a business credit card with no revenue? 

The short answer is no. However, there are exceptions, for example, you may be able to get a business credit card with a personal guarantee if your income meets underwriting requirements. 

Do LLCs start out with good credit? 

When LLCs are initially registered, they have no business credit. In this case, credit decisions may be based on the owner’s personal credit. Businesses can build credit by establishing their business properly, setting up accounts with the right tradelines, and paying accounts on-time as agreed. 

What happens if an LLC defaults on a credit card? 

If an LLC defaults on a credit card, the creditor can go after business assets, send debts to collections, and sue to liquidate the company. If the credit card has a personal guarantee, the creditor may hold the business owner personally liable to repay the debt. 

Final Thoughts

Now that you’ve explored the best business credit cards for your new LLC, consider all options like the Chase Ink Business Preferred and PEX Expense to find what suits your business needs. Distinguish between business credit and corporate cards, with corporate options like Bill Spend & Expense offering a smooth ride for your expense management.

For loans, check out Credibly and LenCred, weighing perks and alternatives. 

Are you ready to learn how to get up to $100K in business credit in as few as 30 days? Join Business Credit Workshop today!

The PEX Card: Is it the Best Corporate Card for Your Business? 

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PEX card review

The PEX Card is one of the most popular non-big-bank corporate cards on the market today. While the offer is legit, it’s not your only option. Before you sign up for any financial service, you should know exactly what you’re getting into. 

Here, I’ll break down the PEX offer in full (the good, the bad, and the ugly), and I’ll point you out to other options that may or may not be a better fit for your operations. 

This is what’s in store: 

So, let’s break it down!

What is a PEX Card Used For? 

What is a PEX card?

PEX is a corporate expense management platform that offers a range of financial tools, including corporate charge cards (PEX Cards) with dynamic credit lines and 1% cash back – These cards are designed to help you manage: 

  • Employee spending
  • Payments to vendors
  • Fund distribution for various programs

PEX Cards provide businesses and nonprofits with a high degree of control and flexibility, which enables easy administration through automated reporting, mobile receipt capture, and real-time tracking. The platform includes features such as prepaid expense cards, virtual vendor cards for bill payments, and grants disbursement cards. 

While they’re powered by Visa,® PEX “Expense” cards are not credit cards, they are prepaid, corporate cards. The platform also offers PEX “Credit” cards with dynamic limits based on the cash flow in and out of your connected business bank account, which I’ll explain more below. 

For a better understanding of the difference between the two types of spending, explore an in-depth comparison between credit cards and corporate cards. 

The PEX card also offers rewards and incentives cards for employee recognition. The PEX API allows you to customize and integrate solutions, generating cards and spending rules on the fly. 

As a brand, PEX Cards cater to a variety of industries and organizations, providing a comprehensive and adaptive financial management solution to streamline processes, eliminate paperwork, and simplify expense reports.

Recommended: 7 Best Cash Back Corporate Credit Cards to Explore This Year 

Where Can You Use a PEX Card? 

Who accepts PEX cards?

The PEX platform emphasizes the convenience and