The term “corporate credit card” is one of the most popular keyword searches on the Internet. Every small business owner needs to have a credit card for business transactions. Having credit card in the name of the company rather than in the name of a person is an advantage.
From the beginning, a small business may not be eligible for a small business credit card. Later, a credit for small businesses can be a barrier to obtaining a credit card. A secured credit card business requires that you pay a certain amount of cash in the account before you can use it. You then use the credit card as you would with any other business credit card, the payment is sent with your monthly statement. The initial deposit you make on the account is not used to pay the balance of the credit card default unless you on payments. Guarantees specific credit cards business exist to help small businesses build or repair its small business credit score.
A true business credit card is a line of credit that is taken on behalf of the company, under the activity of credit. Activity, whether good or bad, is reflected on your credit report company through D & B and other financial institutions, and responsibility for all debts incurred and the bills are due to the company.
However, some companies offer is “business” credit cards they need to ensure a person. These institutions often wonder a personal guarantee, and almost always ask for a social security number of the person requesting credit card. If so, the credit card is not a credit card, but is simply a personal credit card is used for the company. The business is not liable for the debts and bills – you are.
When applying for a corporate credit card for your business, pay attention to the areas to ask your SIN (not your TaxID or EIN) and be wary of any company credit card, which requires a personal guarantee. Ensuring that your company is in the credit card in the name of your company, you can help build your business credit, while avoiding creating problems with your credit.
