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 limited credit history and need access to business funding. However, beyond this convenience, there are few perks on this card.
Rates: Flex Line too expensive to use
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.
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):
Finance charges on $1,000 Revenued Card + Flex Line purchase:
||$100(~$36 / day)
||$100(~$18 / day)
||$100(~$12 / day)
||$100(~$3 / day)
||$100(~$1 / day)
||$300(~$43 / day)
||$300(~$36 / day)
||$300(~$14 / day)
||$300(~$3 / day)
||$300(~$1 / day)
As you can see, traditional credit card interest charges may prove less expensive than the Flex Line finance charges if you only need to carry a balance short term. Meanwhile, factor rate-based finance charges could save you money if you need to stretch repayment out over several months.
Which financing method works better for you will depend on the type of business you have and how successful it is. 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.
Benefits: Scarce for a business card
While the Revenued Business Card has great benefits for beginners, the long-term value is limited. Most of the card’s benefits are centered around the application and the Flex Line feature along with the standard online dashboard and 24/7 customer service.
For business owners builidng their credit, this could be enough. However, for business owners who are looking for a card that includes better benefits, this card can be severly lacking. If you have good to execellent credit, it may be better to look at cards that offer business product discounts or travel credits.
Redemption: Only direct deposit available
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.