Confused need answers before i make a mistake

[Anonymous]

Good Afternoon

I am a little confused by a couple previous posts I read concerning ways to fund your business during the start up phase.  One concern in particular is a post I read about one member who had a legitimate business and a merchant account.  He said he was trying to add to his biz credit and biz bank account by charging his own personal credit card into his business merchant account, because he was financing his biz through personal credit and finances anyway.  Some of the replies were both sided and thats where the confusion comes into play for me.

I have a legally registered biz with the secretary of state for NC and is classifed as a one member LLC.  I also have a seperate bank account in the biz name with my bank.  My merchant account is with Square because as I do take credit cards as payment for services rendered the frequency does not warrant going with other large companies like verifone and so on.  Since I have completely funded all start up costs with my personal credit cards because I am finding no assistance with a SBL from anyone and beleive me I have tried every possible angle this is but I REFUSE to go with a pay day advance not at 198% interest.  

So since the merchant account (SQUARE) is linked to my Biz account and I funded all startup and equipment costs with my personal credit cards, can I charge my personal cards into my merchant account which is legally obtained and official to gain more working capital and more importantly purchase the remaining equipment I have to get for the company using the biz account's bank card.  I am not trying to do anything behind anyones back I am merely trying to seperate the purchases and expenses the company has from being attached to my personal credit cards.

Please I dont want replies telling me how to get around paying fees or how to do this without getting caught.  I have worked to hard to establish myself with credit and have spent nearly $10K in start up costs with this biz, I am not about to go and start being crooked with my bank or the relationship with my CC lenders.  I am asking if this is acceptable.  I have read every credit agreement that comes with each credit card from synchrony bank and capital one, and nowere in there does it clearly state this is not permissable.  I have even spoken to my attorney who says she cannot find any statutes in the law that forbids this type of action.

Of course I do not want to call each of my CC lenders and start asking questions like this and raise any red flags or make them become suspicious of my questions,  I came here because I have received so much good advice and ways to build myself up and all have been successful.  So I am asking once again from the forum members for some thoughts on this.

AGAIN I DO NOT WANT ADVICE ON HOW TO CHEAT OR BE DECIETFUL TO ANY OF MY CREDIT CARD LENDERS !!!

Thank You for taking the time to read this post and as always comments and advice are welcome.

Have a Blessed Day 

[MyDataMyChoice]

I would Fund using BUSINESS Credit Cards

Chase Ink

American Express Charge and Credit 

Capital One Business

Try BJ's or Sams Mastercard (try NO PG first...might get lucky... if not then PG)

This will keep the debt off your credit and interest deductible

(not sure if you PG BJ's if it reports personally.... also capital one does report to personal... )

What does your credit profile look like?

Have you looked into a PLOC?  Lower interest rates than Credit Cards 

If you have already used personal cards and are 'maxed' out.... you will need to go to a credit union (have had good luck with NASA)  They will consolidate up to 30K with 7.9% BT  and then you can apply for business cards... or even there PLOC 

Any way you can get into NFCU?

[MyDataMyChoice]

DO NOT Use your Credit Cards in a business you own or are an officer of.... 

I did this with Amex before and they shut down all my amex accounts the next day and i had to wait two years to get back with them.... its a anti-money laundering thing

***And I didnt even do it to get money i was just testing the machine***

[MyDataMyChoice]

Digital Federal Credit Union offers some really good VISA Cards....
Business and Personal

You can transfer from VISA cards to Checking for the same purchase APR 8.99%!!!! and nothing stopping you from taking money out and loaning that to the business

[Anonymous]

Thats the problem I dont have any biz credit cards only my bank account card.  I have tried even Cap 1 Spark Classic with a PG and was flat out denied.  No way will Amex Chase or Citi look at me I have way to many HP's and a short history and now that I have funded most of my business with personal cards the balances have increased compared to my income, which I cant count because I am not employed rather I am self employed and the business has not been in biz long enough to establish tradelines or biz credit.

[lindsaydruart]

Doing this is actually fraud because you circumvent the cash advance policies of your card. If you don't want to defraud, pony up and do that cash advance. Otherwise, you jeopardize your card and your relationship with Square.

As far as Business Credit without PG, try the BJs and the Sam's. Those are the only ones that will give you a major card without PG, if your business credit is solid enough. If you wish to get a relationship with Cap1, app for a personal card first, QS1 or Platinum then app for the Business after 6 months of good history. Cap1 is very giving once you get in the door.

[Anonymous]

Cap 1 not so much I have two cards with them QS and Platinum both over $1K CL and been with them for a year and they flat out denied me.  I have a relationship with them never missed a payment never paid min due never been late and still deny.  I have a good relationship with Synchrony and havent tried that route yet.  Biz does not have strong credit because it was just started.  My personal credit is only hurting in the inquiry dept, I have too many and thats what the problem seems to be.  Zero Baddies Zero BK not a single negative mark on my report, only HP's and now of course since I used my CC's to fund all the startup costs my balances are high 

[lindsaydruart]

Have you tried Kabbage?

[Creditaddict]

Since Square is registered to you in the business name they will very likely shut you down... if you are talking $500- up to maybe a couple grand you might get by but probably not a great idea if you want to keep the account.

Couple things I catch when I read your responses.

1. If you are employed in addition to your self-employed, use ALL your income and list it just under your regular employment income.

2. if you are only self employed, I would list your company as your employer and list yourself as a manager or some sort of title other than self-employed and owner!

3. amex business charge card has pretty low standards to get approved and might be an option however it is due in full each month so might not be that helpful for you right now.

4. Kabbage would probably give you some if you have some charges going through the square account but with just 6 months to repay, it's pretty big payments needed and a pretty short borrow time.

5. you have a lot of sync accounts, might be worth paying the AF for Sams Club and try for a Sams Club Mastercard Business with PG (you can do it online)

[lindsaydruart]

---

@Creditaddict wrote:

Since Square is registered to you in the business name they will very likely shut you down... if you are talking $500- up to maybe a couple grand you might get by but probably not a great idea if you want to keep the account.

Couple things I catch when I read your responses.

1. If you are employed in addition to your self-employed, use ALL your income and list it just under your regular employment income.

2. if you are only self employed, I would list your company as your employer and list yourself as a manager or some sort of title other than self-employed and owner!

3. amex business charge card has pretty low standards to get approved and might be an option however it is due in full each month so might not be that helpful for you right now.

4. Kabbage would probably give you some if you have some charges going through the square account but with just 6 months to repay, it's pretty big payments needed and a pretty short borrow time.

5. you have a lot of sync accounts, might be worth paying the AF for Sams Club and try for a Sams Club Mastercard Business with PG (you can do it online)

---

You can't do the Business Sam's online. Only the personal one. If you can, that's news to me. I've tried to do it several times. Try without PG first just in case. Try the BJs too. Comenity is pretty lenient. Definitely always list yourself as an employer instead of self employed. Only do self employed if you are a sole prop.