What Are the Risks of Using Business Credit Cards?
While business credit cards offer many benefits, they also come with risks:
1. Debt Accumulation: Mismanagement of credit can lead to high levels of debt, which can be detrimental to your business. 2. Impact on Personal Credit: Many business credit cards require a personal guarantee, meaning your personal credit score could be affected by the card's usage. 3. Interest Costs: If you carry a balance, the interest costs can add up quickly and impact your business's profitability.