Business Credit Cards & Business Loans

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Every Business Needs Business Credit Cards

Posted by businessfinancing on April 30, 2008

Every small business owner needs to have a credit card or a line of credit to do business transactions. Having a business credit card in the name of the business rather than in the personal name has advantages for a start up business and existing businesses alike.

A true business credit card is a line of credit that is taken in the name of the business, under the business’ credit. Activity, whether good or bad, is reflected on your business’ credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.

However, some companies out there offer “business” credit cards which they require a personal guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the business credit card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts – you are.

It is hard to find business credit cards that report activities to the business credit profile rather than the personal. Although scarce, these no credit business loans and credit lines do exist. As a tip – Avoid putting your social on any applications and remember that your signature most commonly signifies a personal guarantee.


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