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Is it okay to use a personal credit line for business purchases, or is a business loan better?
Wiki User
∙ 9y ago
It is easier to use your personal finances, however, for tax purposes it would be more beneficial to obtain other financing.
Wiki User
∙ 9y ago
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Is it legal to use a business credit card for personal purchases?
yes i think it is
Who is responsible for business credit card debt?
The business is, provided the charges were for business related or permitted personal purchases. Most businesses, however, have policies for personal purchases on company plastic, and procedures for paying back the company. If personal charges are not permitted, then the card holder will be required to pay back the debt.
What is the purpose of having a business check card?
It's unclear what a business check card is. A business credit card though, it useful to use to keep track of business purchases versus personal spending.
How do credit card rewards differ For example, is it better to use a personal or business credit card?
A business credit card would be best as to establish credit for building your own company. As far as rewards go, that is of course dependent upon the card issuer that you choose. In order to keep your personal finances in order it would also be better to have a business credit card for all business related expenses.
Is purchases a credit or debit?
Purchases are personal account nature and as a basic accounting rule debit what comes in and credit what goes out so purchases has debit balance as normal balance.
How important is my business' credit score when applying for business loans?
Your business' credit score, and your own personal credit score, are critical components to landing a business loan at a reasonable rate. The higher your score, the better your rate.
Is purchasesaccount debit or credit?
Purchases account is personal account in nature and basic rule for personal account is debt what comes in and credit what goes out so purchases is a debit balance as a default balance.
What are the benefits of business credit scoring?
The benefits of good business credit scoring is that lenders can offer better interest rates and it will save you money. It can also reduce your personal liability and protect your personal assets.
What is the difference between personal credit and business credit?
The difference between personal credit and business credit is that personal credit only applies to one person; one's self. However business credit can be applied to the employees in any company which are covered by the business insurance.
Are purchases account is increased by a credit and decreased by a debit?
Purchases account is personal account in nature so debit means increase and credit means decrease.
Do business credit cards come without a personal guarantee?
Most business credit cards do come with a personal guarantee. There are, however, ways to get a business credit card that does not require a personal guarantee.
Does your personal credit score affect your business credit score?
If your personal credit is tied to your business credit, you run the risk of having your personal credit affect your business credit. When, establishing a business, it may seem easier to use your personal credit to get loans, but this could increase your personal risk should the business fail or undergo financial strife. For this reason, it is beneficial to register your business as a completely separate entity from your personal credit. One of the best ways to do this is by registering to receive a D&B D-U-N-S® Number for your company.
