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CGCPA
CGCPA , CPA
Category: Finance
Satisfied Customers: 3819
Experience:  40+ years experience in taxes and financial planning
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On Business credit, My partner and I started a business

Resolved Question:

On Business credit,

My partner and I started a business 3 years ago and opened credit cards backed by our personal credit. Our business has been successful and we are looking into expanding.

I'm interested in opening a new credit card in order to develop additional purchasing power towards our expansion plans. At what point should we expect that the business has developed its own credit so that we wouldn't have to backup any new credit cards with our own personal credit?
Submitted: 4 years ago.
Category: Finance
Expert:  CGCPA replied 4 years ago.

Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.

 

While you should be able to get a business credit card now (since banks want you in business at least 2 years) the reality is that as long as this is a closely held venture (only a few owners) they will almost always want personal guaranties. That has become even more restrictive with the economic situation. To get a business card without the personal guaranties you should call the telephone number on the back of one of your current cards and ask to speak with a customer service representative. An excellent personal history coupled with strong financials should do the trick.

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