A lot of small business owners who had been relying on Advanta credit cards are justifiably angry. And with good reason. If you’re not a holder of a now useless Advanta credit card, then you don’t know what its like to have your credit limit shut off with little to no warning.
In normal times, the Advanta credit card shutdown wouldn’t have been a massive issue. Another credit card company would have gladly purchased their customer base and continued to offer them credit. Today, however, small business owners who relied on Advanta are feeling like they stepped in the ring with Mike Tyson in 1986, as the strong left hook delivered by Advanta has been followed up with an equally strong punch in the form of rejection.
During the past nine months, lenders have cut back on lending to small businesses even more than they have to consumers. (And small businesses aren’t protected by the new credit card laws either!) So, many have found themselves with a shut off credit line, unbelievably high interest rates, and no new credit card options.
In response to user inquiries, I put together a basic list of major banks that offer small business credit cards. Here they are:
http://www.americanexpress.com
http://www.citicards.com
http://www.bankofamerica.com
http://www.chase.com
http://www.capitalone.com
In addition to these companies, I stumbled upon an ad in the Wall Street Journal placed by First National Bank of Omaha. The ad, which boldly asks, “Did you business credit card suddenly expire?,” is clearly aimed at Advanta credit cardholders’. It invites them to apply online at www.firstnational.com/smallbusiness. This offer provides a 0% introductory rate on purchases for 6 months and an 11.99% APR thereafter (there is no introductory rate on balance transfers).
Given the fact that no other banks are advertising business credit cards, jilted Advanta cardholders may get lucky with this offer. However, there is one important thing to take into consideration. In small text at the bottom of the ad is the following statement, “We reserve the right to change the account terms should your credit profile change or for other reasons described in the Terms and Conditions.”
So, while First National Bank of Omaha may be throwing a life vest to Advanta cardholders, there are indeed strings attached. Nevertheless, I think first National Bank of Omaha should be applauded for its willingness to take a chance on the entrepreneurial small business owners that will lead our country out of this seemingly interminable recession.
Editor’s Note: If you have an experience with First National, please share so other small business owners can learn more about this company.
July 9th, 2009 at 1:06 pm
Stay away from First National of Omaha. They are following the Advanta model of starting with low introductory rates then finding any excuse to arbitrarily raise them. It may well be the next Advanta and be out of business shortly. I got stung with Advanta, now with First National of Omaha and I have never been late with a payment.