Business Credit Cards?

After a long blogging hiatus, here is some practical advice about business credit cards. I made a post about this same topic about a year ago, but it continues to be one of the most frequent issues I deal with as a business debt consultant. It is always good to be reminded of what to do regarding business credit cards.

If a credit card is obtained using your social security number and it has your company name on it, then BOTH you and your business are responsible for the debt. In other words, the credit card company has a hand in both your pockets.

As long as payments are made in a timely manner, it will not matter, but should you miss a payment, or be late, both your personal credit report and your business credit will suffer.

Business cards should be obtained with your federal Tax ID number and only that number.

If a card you already have has your social security number, do not add your business name. When a card is personal, you have options and federal protections against debt collectors, but business cards have no options or federal protections.

As I said in a post date June 2006:
"In my experience as a small business debt turnaround specialist, credit card debt is one of the most difficult debts to resolve because nearly all small business credit card debt has been obtained using or including social security numbers. Tie it to your business and steer clear of credit cards masquerading as business cards that require your personal information. You are protecting yourself and preparing for any unforseen financial trouble by leaving a path for business debt managment professionals to settle your debt."

If you find yourself in a difficult situation trying to handle your own business debt, while turning around your business, give me a call. Financial Technologies can help you get back on your feet and give you the time you need to get out of debt and back to business. Visit here for more information.

I hope to be more frequent with my future posts!

- TheDebtDr
http://www.financialtechnologies.com