Why Your Biz Needs Its Own Plastic
Why wouldn’t an entrepreneur want to use her personal credit accounts to start up a company? What’s the advantage to using a business credit card?The major advantage is that when you open a business credit account, make purchases with it, and then pay them on time, you’re establishing business credit in your company name. And, as I said, business credit records are becoming more important for all kinds of financial decisions.
I recommend that if your business is using anything established in your personal name, something like a telephone account or a bank account, you should put it in your business name. It makes your company more professional, and if you’re purchasing and paying on time, it helps you gain a positive credit history that will help build up your business credit and improve it. And that will help you get better rates and terms in the future.
How does a startup company get a first credit card?
For a brand-new business, a credit provider will probably start by examining your personal credit history. Generally they’ll also default you to a higher interest rate and a lower credit threshold until your company proves itself. The important thing to remember is that after six months of good history with them, you can go back and renegotiate your credit terms.
Steve Mertz on September 20th, 2006 5:24 pm
Dane, Great information as always…I almost feel close enough to ask you to cosign for my business card ;-) Thanks for all the great ideas.
Advanced Technology Products Interactive » Blog Archive » Why Your Biz Needs Its Own Plastic on September 21st, 2006 2:45 am
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andy on September 21st, 2006 4:58 am
getting your own business credit cards is becoming more and more th esame as the reaons why you should have headed notepaper and business cards.
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