What business credit card is best for buying inventory?
Updated
The best card for inventory is one with a limit big enough for a real order, underwriting based on your business instead of your personal credit, and a way to pay suppliers that do not take cards. Shield's business credit card is built for that: limits are set on company revenue, cash flow, reserves and operating history, and you can send a wire from your credit line where cards are not accepted.
What to look for
A limit sized to your orders
A card is only useful for inventory if one purchase fits under it. Ask how the limit is set and whether it can grow as your sales grow.
Underwriting on the business
Many business cards are approved on the owner's personal credit and require a personal guarantee. For a wholesaler, that puts personal finances behind every pallet. Look for cards that underwrite on company financials.
Coverage for suppliers that do not take cards
Many wholesalers, distributors and factories prefer wires. A card that cannot reach them leaves you paying from cash. Look for a way to pay by wire from the same line.
Repayment you can plan around
Know the due date, whether the card charges interest, and how the balance is collected. A pay-in-full card with a fixed date makes it easy to plan repayment from sales.
Fees
Check for upfront, subscription and transaction fees, and read the card agreement before you rely on a card for supplier purchases. Limit and supplier coverage matter more than extras, since being able to buy is the point.
Bookkeeping
Accounting sync, virtual cards and employee cards save time when you run several channels or buyers.
How Shield's card meets those points
- Underwriting: company revenue, cash flow, reserves and operating history. No personal credit check and no personal guarantee.
- Limits: set on your company's financials, and you can choose whether to accept increases.
- Suppliers: pay by card where accepted, and send a wire from your credit line where it is not. Shield also pays suppliers in China and Hong Kong.
- Repayment: pay-in-full, so no interest on card payments. The statement balance is debited automatically from your connected account on each monthly due date.
- Fees: no upfront or subscription fees for cardholders.
- Tools: virtual and physical cards, and QuickBooks sync.
- Eligibility: US businesses with regular supplier, inventory, logistics or advertising costs. Owners can live outside the US, with a US company.
Approval is not guaranteed and depends on your business.
FAQ
Do I need good personal credit? No. Shield does not run a personal credit check or require a personal guarantee. Approval is based on your company's financials.
Can I carry a balance? No. It is a pay-in-full card. The balance is debited automatically on the monthly due date.
Next step
To see how Shield's business credit card works, visit Shield business credit cards.