Revenued Business Card review: A fit for business owners with subpar credit?

Combining a prepaid business card with a flexible spending line, the Revenued Business Card + Flex Line balances some of the best features of business rewards cards with the convenience and flexibility of business loans or a line of credit. 

Because approvals are based on your business revenue and banking activity, the Revenued Flex Line makes capital available to business owners even if they have less-than-ideal personal or business credit scores. Revenued also extends spending lines in exchange for a portion of your future business revenue, so you may have access to more capital than you’d get via a typical subprime or secured card credit limit. You’ll also earn 3 percent cash back on every purchase made with the card — a stellar rewards rate, especially for business owners with a low credit score or limited credit history.

However, this financing model comes with risks. Not only is it impossible to avoid finance charges the way you can using a traditional credit card’s grace period or a 0 percent introductory APR, but you also risk not having enough funds in your account to cover your automatic daily finance charges, resulting in fees.

The Revenued Business Card + Flex Line could be a great way for business owners — especially those with limited or damaged personal credit — to access more funds than they’d be offered with a traditional credit card credit limit. But if you’re in the good credit range, there are better options available.

Quick highlights

• Rewards rate: 3 percent cash back on all purchases
• Welcome offer: Earn $500 when you make $5,000 in eligible purchases within the first 3 months
• Annual fee: $0
• Purchase intro APR: N/A
• Balance transfer intro APR: N/A
• Regular APR: N/A

Current welcome offer

The Revenued Business card currently offers a sign-up bonus of $500 after you make $5,000 in eligible purchases within the first 3 months. This isn’t the best welcome offer available for business owners, but it is easily one of the best you could hope for if you have a limited credit history or low score. 

Cards that require good to excellent credit can come with welcome offers valued at $1,000 or more. Spending requirements for these cards can be as high as $50,000 in six months, making the Revenued card’s spending requirement much more attainable. Plus, if you’re assigned a 1.1 factor rate on your Flex Line funds, this bonus alone would offset your finance charges on $5,000 in purchases.

If you split your spending evenly over the 3-month qualification period, you’ll need to spend around $1,667 per month to earn the welcome offer, which should be reasonable for most business owners. However, you’ll need to pay finance charges for the funds you use, so be sure to assess your cash flow before you apply to ensure you’ll have the funds you need to meet the repayment requirements. 

Rewards rate

If you have a fair credit score or a limited credit history, you’ll have a hard time finding a business card that earns rewards, much less at a rate as high as the Revenued Business Card. And though the Flex Line factor rate – whether it’s 1.1 or 1.5 – will easily outpace your rewards, earning a high cash back rate at least helps offset this cost.

How you earn

The Revenued Business Card earns an unlimited flat rate of 3 percent back on all purchases. That’s one of the best flat rewards rates available on a card in this category and even beats the rate you’ll get on many cards that charge annual fees or require good to excellent credit. 

If you don’t spend heavily in major business card bonus categories like office supplies, travel or gas, the Revenued Business Card could be a solid all-purpose rewards option. It could also make sense as a supplemental rewards card if you already earn more than 3 percent cash back in some categories and want to maximize your earnings on general purchases. 

How to redeem

Cash rewards earned from card spending are added to your Available Rewards balance in your card account and are available for a direct deposit if you have a rewards balance of $10 or more.

Unlike some other cash back cards, the Revenued Business card doesn’t offer redemption options like travel, gift cards or online shopping. While this may be inconvenient, this makes using your rewards a simple process. Once you redeem your Available Rewards, your cash back is transferred to the business bank account associated with your Revenued card account.

Since this is a cash back card, you don’t have to worry about point or redemption values. You simply earn back a percentage of whatever you spend. Since this card earns 3 percent back on all eligible purchases, you’ll get 3 cents back for every dollar you spend.

One of this card’s best traits is its low entry barrier when it comes to your credit score — a big perk if you have fair credit or a limited credit history and need access to business funding. However, beyond this convenience, there are few perks on this card.

Quick, user-friendly application process

Your Revenued Business Card + Flex Line application is reviewed and you can get an approval decision within an hour. You also aren’t required to move forward with opening an account until you see your spending limit and factor rate. This makes it much easier to weigh your options in a complex business funding market. 

Spending limit increases with your revenue

How much funding you’re eligible for is based on your current business savings, income, cash flow and debt, so your spending line evolves with them. This means as your business grows, so too will your Flex Line.

This is a great perk for business owners who are seeing rapid growth and continuously need more funding for their operations, but may not qualify for a large business loan or credit limit on a traditional credit card.

No hard credit inquiry

Since your funding decision is based on revenue and cash flow — not your credit score — the Revenued Business Card + Flex Line is a great fit for cardholders with a limited or less-than-ideal credit history.

The Revenued application also does not require a hard credit inquiry, which keeps your credit score from temporarily dropping when you apply, as it would if you applied for a typical business card. This is a strong benefit if you already have fair or average credit and want to protect or build your score. 

There’s no annual fee for this card, making it an accessible option for business owners who don’t have a lump sum of cash to tie up in fees. The Revenued Business Card also doesn’t come with an APR, so you won’t have to worry about compounding interest charges. 

You could be placed in a daily, weekly, monthly or yearly repayment plan. These plans vary from one business to the next, but as underwriters review your application, they will determine your repayment period at the same time they determine your factor rate and Flex Line limit.

However, to use your Flex Line, you’ll have to pay finance charges based on your factor rate, and funds are automatically deducted from your account based on your rate and payback term. You’ll also face fees if you don’t have enough money in your account and your payment bounces ($35 for each day it’s assessed). 

A factor rate is different from an interest rate and is presented to cardholders as a decimal rather than a percentage. Rates typically range between 1.1 and 1.5, which is essentially a 10 percent to 50 percent charge for access to funds. For example, if you make a $5,000 purchase with a factor rate of 1.1, then you’ll owe $5,000, plus $500 in finance charges.

To determine your spending line and factor rate, the Revenued Business Card + Flex Line issuer, Sutton Bank, will analyze your cash flow, past transactions and annual revenue. This rate only applies to funds you use, so if you have a spending limit of $5,000 but only use $1,000, you’ll only face finance charges on the $1,000 you used. 

Some factor rates are as low as 1.1 or 1.2, relatively low rates compared to an APR on a standard credit card. But depending on how quickly you can cover your purchases, financing charges on this card may still end up being more expensive than carrying a balance on a credit card.

The following tables show how much interest you’d face if you paid off a $1,000 balance on a credit card (based on Bankrate’s credit card payoff calculator, with an APR around the national average) and how this compares to the finance charges you’d face after making a $1,000 purchase with the Revenued Business Card + Flex Line given different payback terms.

Interest charges on $1,000 credit card balance (19 percent APR):

It’s hard to compare the Revenued Business Card + Flex Line to traditional cards because of its unique funding and payback structure, but it shares a few features of traditional business cards, including its rewards program. 

If you’re looking for a new business card and you have fair or average credit, the Revenued Business Card + Flex Line may be one of your only options. But if you’re close to a good credit score, consider these alternatives:

Revenued Business Card vs. Chase Ink Business Unlimited® Credit Card

The Chase Ink Business Unlimited credit card is a solid flat rate cash back card that awards cardholders with 1.5 percent back on all purchases. It has no annual fee and a welcome offer of $750 in cash back after you spend $6,000 in the first three months you hold the card.

You’ll need at least good credit to be approved for this card, so it might be out of reach for you if you’re primarily interested in the Revenued Business Card as a limited or damaged credit option. However, if you meet the credit requirements, then the Ink Business Unlimited might be the better choice between either card because you can avoid interest by paying off your balance in full each month.

On the Revenued card you must pay the same total finance charges based on your factor rate whether your payback term is 30 days or several months. Plus, if you’re interested in short-term financing, the Ink Business Unlimited card’s 12-month 0 percent introductory APR on new purchases (then 17.99 percent to 23.99 percent variable) will come in handy, giving you access to a lump sum that you won’t need to pay interest on for a year.

Although the Ink Business Unlimited card’s rewards rate is half that of Revenued card’s, you’ll at least have the chance to retain that cash back rather than severely offset it with finance charges. The Revenued card earns 3 percent cash back on what you spend, but that 3 percent is trumped by the at least 10 percent you’ll pay in finance charges based on your factor rate.

Revenued Business Card vs. Capital on Tap Business Credit Card

The Capital on Tap Business credit card earns the same rewards rate at the Ink Business Unlimited but has a comparatively weak welcome offer. You’ll need to spend a substantial $15,000 in the first three months to earn $200 cash back.

However, the Capital on Tap card stands out for its modest APR range. You can get a variable APR as low as 17.74 percent or up to 35.99 percent, depending on your creditworthiness. If you’re lucky enough to qualify for the low-end APR, this card could make sense as a way to finance purchases or free up cash flow without paying a ton in interest charges. 

Unfortunately, this card does not have an introductory APR period. If you need to finance purchases over several months but have a less-than-ideal credit score, you might be better served by the Revenued Business card and its factor rate-based model.

Best cards to pair with the Revenued Business Card

It might be a good idea to pair this card with a secured business card if you’re working on your personal credit score. While the Revenued Business card can help you access funding with a damaged or limited credit history, it’s not the most practical long-term credit-building option since you can’t avoid finance charges. A secured business card may prove less expensive and more efficient at building credit.

An option like the Bank of America® Business Advantage Unlimited Cash Rewards Secured Credit Card* can be a great choice because it earns unlimited 1.5 percent back on all purchases and charges no annual fee. Although the interest rate can be quite high, it’ll be a solid choice to build credit if you keep your card balance low and pay it off in full each billing cycle.

Plus, once you have a good or excellent credit score, you may be eligible to upgrade to an unsecured business credit card without closing your card account with Bank of America. The Bank of America® Business Advantage Customized Cash Rewards Mastercard would be an ideal choice because you’ll be able to diversify your rewards earnings with customized categories.

If you have a decent credit score and never carry a balance on your credit cards, you’ll likely want to skip the Revenued Business Card + Flex Line. The finance charges you’ll pay with the Revenued Business Card + Flex Line factor rate can be substantial depending on the rate you qualify for and how much of your funding you use. Plus, the fact that you’re locked into paying these charges regardless of when you pay off purchases is unfortunate given the flexibility available with credit cards when it comes to interest. With a traditional credit card, you can skip interest charges simply by paying off your balance each billing cycle.

However, if you have a fair credit score or no credit history and can’t qualify for traditional business cards or a low-interest business loan, then the Revenued combo may be your best option for funding for your business. Or, if you plan to carry a balance long term, a factor rate might actually be an advantage for you because it’s a fixed rate and finance charges don’t compound like interest as long as you meet your repayment terms.

*The information about the Bank of America® Business Advantage Unlimited Cash Rewards Secured credit card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.