Business credit advice please

[Anonymous]

I am in the very early stages of planning out a new business.

When I say early stages, I mean I had the idea a few weeks ago to start making and selling my own cold pressed juices.

So far I have hired a graphic designer to design my branding and planned out most of my projected expenses to start up.

I plan on opening a physical store location with my own cash for about $30k, hopefully in the next year or two if things go well.

I really just wanted to start off smaller to test the waters before investing basically my whole savings into the business.

I haven't set up anything so far in terms of the actual business, but in the next few months I plan on registering/incorporating and spending a few thousand to get started with equipment etc.

Is it worth applying for a business CC to use this for the initial startup expenses or should I just stick with my personal ones?

I had the AMEX Simplycash in mind as it seemed easier to apply than any others. Would my age be looked down upon (21)? Any advice?

[Anonymous]

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@pricetyler wrote:

I am in the very early stages of planning out a new business.

When I say early stages, I mean I had the idea a few weeks ago to start making and selling my own cold pressed juices.

So far I have hired a graphic designer to design my branding and planned out most of my projected expenses to start up.

I plan on opening a physical store location with my own cash for about $30k, hopefully in the next year or two if things go well.

I really just wanted to start off smaller to test the waters before investing basically my whole savings into the business.

I haven't set up anything so far in terms of the actual business, but in the next few months I plan on registering/incorporating and spending a few thousand to get started with equipment etc.

Is it worth applying for a business CC to use this for the initial startup expenses or should I just stick with my personal ones?

I had the AMEX Simplycash in mind as it seemed easier to apply than any others. Would my age be looked down upon (21)? Any advice?

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No, sounds like a solid plan.  Your age will not have an impact on anything.  The Amex Simplycash card is a very good card to start with.  But make sure everything is registered before applying for the card.

[Anonymous]

If nobody else is going to say it, I will. It is an extremely bad idea to finance a business with a credit card.

[Anonymous]

@CAPTOOL

That wasn't the plan at all, I also referenced I have over $30k sitting in savings waiting to be fed into the business.

Why wouldn't you assume I would pay in full every month given my credit scores and cards I already have?

[Anonymous]

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@pricetyler wrote:

@Anonymous

That wasn't the plan at all, I also referenced I have over $30k sitting in savings waiting to be fed into the business.

Why wouldn't you assume I would pay in full every month given my credit scores and cards I already have?

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Because you stated "Is it worth applying for a business CC to use this for the initial startup expenses or should I just stick with my personal ones?" 

I've been in business for a long time, and I can tell you from personal experience that the more you can avoid credit cards for business financing the better off you'll be. They're fine for ongoing spend, but dangerous for financing.

[Anonymous]

@CAPTOOL

Ok, well maybe I should of worded it differently then.

I will be paying off every penny on the card, every month. I was just wondering if there were really any advantages of using this over a personal CC, otherwise I would just avoid the trouble and use my CSP.

[Anonymous]

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@pricetyler wrote:

@Anonymous

Ok, well maybe I should of worded it differently then.

I will be paying off every penny on the card, every month. I was just wondering if there were really any advantages of using this over a personal CC, otherwise I would just avoid the trouble and use my CSP.

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The biggest advantage is the automatic segregation of business expenses from personal expenses. Makes things easier from an accounting and tax perspective.

[Anonymous]

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@pricetyler wrote:

@Anonymous

Ok, well maybe I should of worded it differently then.

I will be paying off every penny on the card, every month. I was just wondering if there were really any advantages of using this over a personal CC, otherwise I would just avoid the trouble and use my CSP.

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Everyone's needs for businesses are different.  It looks like you have planned carefully and have done your homework.  I am a business owner myself and always seperate my business finances from my personal hence business credit cards.

So for you, start with 1 and go from there.  I wouldn't advise you to put it on the CSP.  So the thought is very good and go for a business card as they use your personal credit report in qualifying you.

Getting the business card also helps tremedously from an accounting perspective.