- Centurion Member
- Posts: 204
- Joined: Tue Oct 30, 2012 10:25 am
- Location: TX
Get your business card before you quit your job. Since you'll secure your card, your income and personal credit history is more important than anything your business has... or at least, that's what I've found. (Single-member LLC here.)
Certain amount of time--- it helps, but doesn't guarantee anything. I got turned down for a Lowe's card, even after passing the 3-year mark, because they felt I didn't have enough revolving credit in my file, despite an awesome personal credit score, flawless EX/EQ/TU reports, plenty of business assets, etc, etc, etc.
Does it need to make a certain amount of money-- Again, my impression is that "your income" is more important than "its income".
Hard pull on you personally-- Yes.
Only permits you to pay business expenses-- How would they know? I buy my favorite packs of paintbrushes from Dollar General. How do they know I'm not buying milk and Twinkies? I spend thousands of $ at home improvement stores each year. How do they know that I'm buying paint and lumber for the biz, and not Amazon giftcards? If I buy dinner at Nobu in Dallas, do they know who's at the table with me? At the end of the year, the IRS and your accountant might care... but not SimplyCash Amex/Chase Ink/Capital One Spark/etc.
That being said, is it a good idea to have a dedicated business card? Absolutely! It helps keep your financials separate from your personal expenses. Whether or not that dedicated business card has your actual business name on it or not, though... that matters less. For the first 3.5 years, I just used the debit card associated with my business checking account, and that worked great for keeping track of mileage for supply trips, expenses, etc. Then I got tired of spending so much and not getting any points or rewards or cashback. Rather than risking being uselessly turned down for a dedicated business card when I couldn't even get a store card, I applied for a couple of extra personal cards (to help grow my file, although it's killing my AAoA), and I just know that everything that goes on it is a business expense. In another year or two, I'll give it another go.
Yes, it's normal to float yourself personal loans to keep your business going, especially during times of financial stress. Ouch, it's normal. Going without the new television/vehicle/eating out is also normal. Very normal. :o)
I'd be less inclined to talk personal details with your boss in the future... he sounds like a real confidence-killer. On the other hand, I suspect he could also be an educational person to cultivate, if you can ignore his personality flaws and ego... it's always fascinating to find out how people started out and grew a successful biz, what hurdles they overcame, what problems had to be solved.