Credit Cards for business

SafaaMassage · 16-12-09, 08:09

Have been having a look at business credit cards and all the rates seem rather uncompetitive compared to personal ones and most seem to include a fee.

Does anyone know if you can use a credit card thats designed as a personal card for business purposes and take advantage of the better deals?

Canary Dwarf · 16-12-09, 13:43

Don't see why not. I use a separate personal card exclusively for business, although I suspect you would be 'personally' liable for the debt.

barryhynd · 16-12-09, 14:06

In my experience business credit cards are really just for ease of use. The interest rate is typically irrelevant because the bank expects to take the full balance back the following month. Most banks offer debit cards these days so why would you want a business credit card?

Mike Lewis · 16-12-09, 19:31

I've been using a "corporate" credit card for about ten years. It's true that it's much more expensive than the personal version. Actually, it's not really a credit card. It's a charge card (that is, you have to pay the full amount each month).

The reason I've kept it is that it offers free travel insurance. That's fully comprehensive cover, not just the fairly simple accident insurance that some cards do. As a very frequent visitor to the US, it's saved me thousands of pounds over the years.

But if you don't need that kind of feature, I can't see any advantage. You might as well go for a personal card. It's not as if your suppliers will know the difference, or care.

Mike

SafaaMassage · 16-12-09, 19:49

Thanks guys.

Gouldie0 · 16-12-09, 20:04

Quote:

Originally Posted by Canary Dwarf

Don't see why not. I use a separate personal card exclusively for business, although I suspect you would be 'personally' liable for the debt.

As a sole trader you're still liable for the debt, there is no difference between you and the business. The bank would still need repaying as in their eyes you're a single entity.

Agree with the above, these business card balances are cleared each month and are more or less a charge card as Mike said. So realistically you need to have enough in the bank each month to cover your expense, not sure if this is quite feasible at the beginning for some businesses.

I would start off using a personal card, keeping all receipts etc of course and statements highlighted with business expenditure. If then in future you feel you have to take on a business credit card to develop your business then so be it.

Kind Regards

Neil