If you own a small business, you may be responsible for the business credit card debt. One of the key questions regarding the business credit card debt is did you personally guarantee the payment of the credit cards or did your company guarantee the debt? Nearly 99% of the time you personally guaranteed the credit card debt. The debt obligation is usually determined by the credit card application which you originally filled out to obtain the credit card. Most credit card companies require the individual, not the company, guarantee the payment on the small Carrying Debtbusiness credit cards. You’re probably wondering, why would they require me to personally guarantee my business credit card debts?

The simple answer is if you do not personally guarantee the business credit card debt, your business could shut down and dissolve itself if it is a corporation or a limited liability company. In this event, the credit card company would have no one to go after to collect the debt because your company no longer exist due to it being dissolved. To prevent this event from happening, the credit card companies usually require you to personally guarantee the company debts. Unless you die, you would be the source they would go after to collect the debt because you personally guaranteed that business debt.

Usually, the only exception to this rule is if you work for a big company, you may be given a business credit card with your name on the card. In this event you are the authorized user, but your employer company is responsible to pay the card. There are som exceptions in which you have a company card, but you are responsible for the charges, but are reimbursed by your employer company.

So don’t be fooled by saying the credit cards name is your company’s name, the company you own. This may be true, but more than likely, you are the one who guaranteed the credit card when you filled out the application for the business credit card.