4 ms·

That is interesting. I've only used AmEx Corp cards with a personal guarantee and wasn't aware there was any other way. For anyone else who stumbles across thi

That is interesting. I've only used AmEx Corp cards with a personal guarantee and wasn't aware there was any other way. For anyone else who stumbles across this comment: AmEx offers Corporate cards both with or without a personal guarantee, depending on what the company wants to do. And (also mentioned farther down in this thread) they also give the option to give the card rewards to each individual employee cardholder, or give all the rewards to the business, again depending on what the company chooses.

4ntonius8lock 7y ago
I could be wrong on this, and someone more knowledgeable feel free to correct, but the way I understand it is: When you start a corporation with no history, any credit obtained is obtained through the founders personal credit history, with all the liability that entails. When the corporation reaches a certain point of maturity, the corporation starts having it's own 'credit' and non-personally backed credit lines can be obtained. I'm ignorant as to the variables used to determine 'maturity' (though processing volume and tax history are probably two, since I know you can get a corporate credit line backed by outstanding accounts receivable alone) This is for a DE corporation and I'm a California resident.
- myalphabet 7y ago
  The company I have experience with using personally-backed corporate cards has been around for a century, has hundreds of thousands of employees, and billions of yearly profits. While I'm sure that your comment is true, 'maturity' is definitely not the only deciding factor in personally-backed vs company-backed cards.
  - insomniacity 7y ago
    Yup, I've been in a similar (or the same?) situation. I think it's because when you get to a certain scale, it's the only way to force employees to file their expenses. No approved expenses report, no payment, your own problem.
  - powvans 7y ago
    When I started in sales at IBM in 2004 this was the case. I had to put down a personal guarantee in order to be issued a corporate AMEX. I hated it, but it was a take it or forfeit the job deal.

4ntonius8lock 7y ago

I could be wrong on this, and someone more knowledgeable feel free to correct, but the way I understand it is: When you start a corporation with no history, any credit obtained is obtained through the founders personal credit history, with all the liability that entails. When the corporation reaches a certain point of maturity, the corporation starts having it's own 'credit' and non-personally backed credit lines can be obtained. I'm ignorant as to the variables used to determine 'maturity' (though processing volume and tax history are probably two, since I know you can get a corporate credit line backed by outstanding accounts receivable alone) This is for a DE corporation and I'm a California resident.

myalphabet 7y ago
The company I have experience with using personally-backed corporate cards has been around for a century, has hundreds of thousands of employees, and billions of yearly profits. While I'm sure that your comment is true, 'maturity' is definitely not the only deciding factor in personally-backed vs company-backed cards.
- insomniacity 7y ago
  Yup, I've been in a similar (or the same?) situation. I think it's because when you get to a certain scale, it's the only way to force employees to file their expenses. No approved expenses report, no payment, your own problem.
- powvans 7y ago
  When I started in sales at IBM in 2004 this was the case. I had to put down a personal guarantee in order to be issued a corporate AMEX. I hated it, but it was a take it or forfeit the job deal.