Business credit cards have your personal guarantee buried in the fine print. A personal guarantee means if for some reason the business fails, you personally are responsible for repaying the debt.

True business credit will have "open terms." Open terms is the true business credit that suppliers offer their customers. The other type of true corporate business credit is a line of credit from a bank or other lending institution. A true business line of credit does not require a personal guarantee. Lines of credit are used by businesses in an effort to maintain cash flow.

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