Re:Stripe Corporate Card
by myalphabet on Tuesday September 10, 2019 @04:53PM
(#20933606)
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.
Re:Stripe Corporate Card
by insomniacity on Tuesday September 10, 2019 @05:38PM
(#20934084)
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.
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.
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.