Credit card for small business
February 27, 2013 12:34 AM Subscribe
Need credit or charge card for a small business that has outgrown its President's ability to cover its obligations.
posted by Protocols of the Elders of Sockpuppetry to Work & Money (9 answers total) 4 users marked this as a favorite
Five years ago a small business, an S-corporation, was founded in the USA, that has become successful. Last year we made just under a million dollars in revenue and expect to do better this year.
At the beginning it was just the President and one staff member, and the President opened an American Express business account in his own name (and his own tax ID number) to serve the purchasing needs of the company. This has worked well, but at this point there are three partners/co-owners and an office manager, each of whom holds an employee card and uses it (sometimes without getting their purchase order authorized, which is a different matter - poor discipline - but pertinent, as it has been really difficult to put a stop to it.) The President is rightfully concerned that he wouldn't be able to cover the corporation's monthly obligations as they now routinely exceed his salary, so he doesn't want this credit card in his name to be used any more.
Amex won't issue a card in the corporation's name alone until we have $4 million in annual revenue, which I don't foresee ever happening. We pay off in full every month and could therefore use a charge card or a credit card; we mainly use the cards for convenience in bookkeeping and in making payments on the things the corporation needs to buy.
Do any solutions exist that don't require a corporate officer to personally guarantee payment? It'd be particularly helpful to learn about people/companies in similar situations who found a solution they were happy with.