In a perfect world, you can always pay your business credit card. But in reality, businesses can face inconsistent cash flow — and many ultimately fail.
If your company hits hard times and can’t pay its business credit card, you’ll have to deal with late fees and higher interest rates. Failing to pay a business credit card can also significantly damage your business and personal credit scores because almost all business cards report serious delinquencies to consumer credit bureaus.
Refinancing the debt or leveraging a balance transfer business credit card, can give you space to pay down the balance without penalties if you act at the first sign of trouble. But if the problem lingers and you don’t pay the debt, you could have to forfeit your personal assets.
Why? Because nearly all business credit cards require a personal guarantee that says, in short, if your business can’t…