2 Ways Finance and Credit Card Companies Screw Over Construction Companies

Expense management, Situation in the market, Business Tools & Equipment
Zaid Rahman
November 15, 2021
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Sometimes, traditional credit card companies are not the best choice for business.

But without the option of a trusted credit card for your industry, you might not have another choice.

Learn how credit card companies can hurt your construction business and what you can do to avoid using them.

#1: Poor Personal Credit Score Can Hurt A Healthy Business

Even if you ensure that your personal and business credit are separated as much as possible, your personal credit could still impact your business. For construction companies, this is no different.

For example:

You own a successful and thriving construction company. Your clients have always been happy with your work, you stay on task, and you balance your projects well.

However, your credit limit is low and your credit score is poor which makes it difficult for banks or finance companies to trust you as a borrower.

Why is this a problem for your construction company?

It presents a challenge for positive and successful growth.

0% for 60 days
The first credit card built for construction
Get pre-approved

Problems with Loans

If for any reason you need a loan, a poor credit score could be enough reason for you to be rejected. 

Although it might not be impossible to find an alternative lender, you might be charged a high-interest rate compared to someone with a better credit score.

This investment might not be worthwhile in the end. Will you ever get out of your poor credit rut if you can’t afford the higher interest rate?

Without access to loans, it could be difficult to successfully get your construction business up and running, or keep it afloat.

Cannot Front Money for Materials and Supplies

Credit card companies that are not specific to business can be damaging to your company. 

In the construction industry, there is a high demand to have materials on hand for work to be done. How do you get those materials? You have to purchase them.

If your credit card company has you locked into a low spending limit because of your personal credit, you might not have access to enough money to buy materials and supplies.

This can hinder a job, slow down the process, or force clients to choose another construction company to do their work.

#2: The Cost of Annual Fees

To help avoid the problems with your personal credit, you’ve applied for a credit card to use specifically for your construction business. The credit card company that you chose doesn’t specialize in businesses. Instead, you’ve just opened a new credit card with a bank that you think you like with the intent to make all business purchases and settlements.

How does this hurt your construction company?

The cost of annual fees alone could be hundreds of dollars. Even if your chosen credit card company waives the annual fee for the first year (as most do), you will be hit with it in the years following.

Paying an annual fee isn’t necessarily a bad thing. It can help increase your credit score and earn your rewards or benefits depending on your credit card company. However, because the annual fee could be pricey, you want to ensure you have the funds available to pay it

A Flexbase Card Will Help You, Not Hurt You

The Flexbase credit card is the best option available to construction companies. 

Unlike other standard credit card companies, the Flexbase card is designed specifically for the construction industry.

With the Flexbase card, you can:

  • Get 60 days to pay, 0% interest
  • Get approved based on your company’s credit, not your personal credit score
  • Avoid annual fees and hidden fees
  • Have an increased spending limit (up to 10x higher)

If you’re tired of being screwed over by your credit card company when it comes to your construction business, consider opening a Flexbase card today.

0% for 60 days*
The first card
built for construction
Get pre-approved
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