Last week, we wrote about financial expert Dave Ramsey’s tips for starting a business, specifically, whether or not you need a loan to start a small business. This week, we are exploring Ramsey’s advice about whether it is necessary to get a business credit card.
Is Getting a Business Credit Card a Good Idea?
Recently, Dave Ramsey provided budgeting tips for small business owners in a Entrepreneur magazine article. One of the tips involved making the decision about getting a business credit card or not. In the piece, Ramsey is firmly against small business owners getting a business credit card. He believes that they should stick to using cash or a business debit card to ensure they do not overspend and rack up overwhelming debt.
Ramsey advises that people tend to act more responsibly with business debit cards and cash, because unlike credit, it is quote unquote real money. Some business owners have complained that they do not trust employees with using a business debit card. Ramsey responds to this complaint by pointing out the bigger issue that these business owners are employing workers that they cannot trust to help them operate and grow their business.