10 replies to this topic

[tlorat]

FYI...CB Friends...www.appliedbank.com!!! If you are getting started with building business credit this is a great place to start...Got approved for the maximum limit and they offer bank accounts for businesses, too.

[Lorentsen]

The only problem with Applied Bank's business credit card offer, the amount of credit offered is minuscule considering they want a PG. Using a PG should be a last resort unless you are a sole proprietorship.

[ApacheD]

Using a PG should be a last resort unless you are a sole proprietorship.

That's a pretty shortsighted viewpoint. PG is a just a tool and non-PG isn't a magic cure to solve all of your problems. If you have a real business with real income, there's nothing wrong with PG-ing a credit card. After you have built the business and credit profile up, you can simply stop using the PG'd account. All the PG says is "Hey lender, I'm so confident in what I'm going to do with the money you lend me, I'm willing to pay you back out of my own pocket if it doesn't work."

Examples of times it's probably appropriate to provide a PG:

• You have a real business and good personal credit and either real business income or a great business plan.
• You are applying for any kind of business loan without being in business 3-5 years.

Examples of times it's probably not appropriate to provide a PG:

• You are building a shelf corp or other business you plan to sell to someone else in less than 3 yrs.
• You have bad personal credit.
• You are applying for an account that you know from others here on CB should not require a PG (gas cards, etc).

If your business with lots of non-PG'd debts fails that could be almost as bad as if your PG'd debt business fails because you are going to have a hard time trying to get your next business funded.

[Lorentsen]

As I said, unless you're a sole proprietorship or other non-incorporated business.

Those business that are incorporated should only PG when absolutely necessary. Keeping personal finances separate from Corporate finances is rule 101, not only to avoid creating an "corporate alter ego", but to avoid personal liability should something unfortunate ever happen during hard economic times. Bad things happen even to the most stable and well run business.

[Cloudboxx]

As I said, unless you're a sole proprietorship or other non-incorporated business.

Those business that are incorporated should only PG when absolutely necessary. Keeping personal finances separate from Corporate finances is rule 101, not only to avoid creating an "corporate alter ego", but to avoid personal liability should something unfortunate ever happen during hard economic times. Bad things happen even to the most stable and well run business.

I totally agree, keeping personal finances separate from Corporate finances is a MUST!

[ApacheD]

I think you guys are confusing PG with "co-mingling of funds", which would be stuff like paying your business bills directly out of your personal accounts or buying a fur coat for your woman out the business accounts. Those kinds of activities will dissolve your entity pretty quick in court and you'd end up paying your business debts via judgments whether you PG'd them or not. Co-mingling is bad, PG is neither good nor bad. It's just a tool.

[IvyMgmt]

No one is confusing it with co-mingling of funds you don't want to use your personal credit with business credit.. I suggest you read this board a bit more for clarity..

[IvyMgmt]

And true its a tool but a tool that should be avoided when applying and using business credit..

[mboggle]

Up to a $750 credit limit?!

[ArchonInitiative]

Applied Bank is not a bank I would let my worst enemy do business with. This is my professional and personal opinion.

[b.a.d.]

TAKE A GOOD LOOK AT THE FEES BEFOR YOU GET IT!!!

FYI...CB Friends...www.appliedbank.com!!! If you are getting started with building business credit this is a great place to start...Got approved for the maximum limit and they offer bank accounts for businesses, too.