Don’t Mix Personal and Business Expenses on a Business Credit Card

Business Credit Card

There are many reasons why you should not mix personal and business expenses on a business credit card. It is always important to maintain separate business and personal credit card accounts. Many businesses do not make much of a profit for the first few years. It is actually quite normal for a business to operate at a loss in the beginning.

If there is ever an issue with having to prove that a person is engaged in operating a business and not a hobby, the Internal Revenue Service will require proof that there are separate accounts. It is also much less time consuming to keep track of expenses when they are placed on one credit card designated for business purchases. Having to look through personal credit card statements in order to analyze each transaction and then decide if they were business or personal expense can be very time consuming. It may be impossible for a person to remember the details of all the transactions.

Investors and partners in a business may not have a lot of trust in a co-partner or business owner who continually uses business credit cards in order to pay for personal expenses. They may feel that the person is purposefully trying to use the company to pay for products or services that are outside the scope of normal business expenses.

In order to have good relationships with other partners and investors, it is a good idea to only use business credit cards for expenses that are truly related to the business. Here at UnsecuredBizLoan, we believe the best way to do this is to have separate credit cards for business expenses and credit cards for personal expenses.

To apply for funding for your small business, use the form on the right to begin the application process.

For more information, go to Business Credit Card at

Don’t Mix Personal and Business Expenses on a Business Credit Card was last modified: April 17th, 2012 by Amit Kraidman
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