Just wanted to get some insight from my fellow entrepreneurs regarding business credit cards.
Why are lenders such as AMEX calling them "Business" credit cards when they base their decision soley on the business owner(s) credit and not the actual business credit?
I've noticed that no matter how high your company's Paydex score is (80 or above) lenders still require a PG from small business owners!
So, why call them "Business" cards?
I honestly really wouldn't mind the PG part IF they didn't add an inq and they don't report the line to your personal CR.
Just my two cents, but a physical person, not just an business entity has to be liable for the possible debt that can incur. Otherwise there is the possibilty of running up charges and then sticking it to the lender.
I'm sure many don't feel this way but IMO this is what has gotten us to PG'ing almost everything these days. No repercussions to an individual. It was easy just to default, close down or disolve and open a new business, it became a scam of sorts and the lenders were taking the brunt of it.
My business is my responsibility, I put just as much effort and time into keeping the books and my debt positive. I have no trouble with PG, I just don't agree that after you PG everything doesn't go to either Biz EX/EQ or D&B only.
Many others disagree but business's can't have their cake (credit) and eat it (no ones responsible) too.
With the Credit Crisis in this tought economy many lenders are tightening up
and many are requires PG. If you're looking for a Business card without PG you might want
to try key bank small business card.
What if you're a real corporation not a one man show? Do they still require one of the officers/share holders/secretaries of that company to PG everything? I don't see how that makes sense. One person cannot be responsible for what the entire company does. There are too many other people make decisions.
How do the Amex small business and corporate cards differ?
I was told by a AMEX rep that the difference between the "Small Business" and the "Corporate" cards are small business cards require a PG from the owner(s) while the corporate card DO NOT.
However, in order to qualify for a "Corporate" card, your business must have existed for at least 6 months and have a minimum GROSS revenue of $4 million a year