Business CC Debts

KDAD

Hi,

Just a quick query in relation to credit card debts for a limited company...

If the business card is linked to the company but your personal name is also on the card - is it the company that is still affected if there are debts on the account or does it go to personal credit file? No personal guarantees were provided

Both my names are on the card so just wanting to make sure it would be the business if anything was to happen

Thanks

MEM62

The account holder is responsible. If that is the business then the business is liable for the account.

You name may be on the card as a user for security purposes but it would not link you to any liability for the debt unless, of course, you used the card fraudulently or contrary the rules & policies that your employer attaches to providing you with the card.

KDAD

Just as I thought thanks. Just on a new business venture but good to know these things thanks

NoTB

The companies credit will be borrowed against the name of the company and you will not be held responsible personally for its payment. If the company fails you would need to file for administration which could lead to liquidation of the company's assets. This will not affect anyone's personal financial status.

Only if you assure the debt on a personal basis will you be personally affected. You may only consider this if you need to provide a windfall to your lender in order to borrow funds for your business.