We announced the Stripe Corporate Card today: https://stripe.com/corporate-card I'm quite enthusiastic and have some observations in my personal capacity, as an entrepreneur and credit card geek.
-
Show this thread
-
My own businesses used personal credit cards, because (like most businesses) they couldn't qualify for credit in their own name.
1 reply 0 retweets 16 likesShow this thread -
This is quite common. In addition, even when a business can get a corporate card, the market standard is to require a personal guarantee.
1 reply 0 retweets 16 likesShow this thread -
This means that, if your startup goes under, the bank has recourse against you (or your employees!) personally. You pay as agreed or your personal credit takes the hit.
1 reply 0 retweets 16 likesShow this thread -
Issuers don't just ask for the personal guarantee to mitigate risk. They do it because they don't have good ways to underwrite businesses at scale. People are simpler and, in the US, have much more extensive credit records.
2 replies 0 retweets 14 likesShow this thread -
This means that you functionally can't get a corporate card for a business, *even a relatively successful business*, if you don't have good personal credit.
1 reply 0 retweets 20 likesShow this thread -
This often hits young entrepreneurs, ones recovering from business or personal setbacks, and entrepreneurs who only recently immigrated to the US.
2 replies 0 retweets 13 likesShow this thread -
Thus, the Stripe Corporate Card. It's an actual corporate charge card, issued to your business. No personal guarantee required. No personal credit check.
2 replies 2 retweets 31 likesShow this thread -
Replying to @patio11
Monthly full payment, like AMEX? Not a rotating credit account?
1 reply 0 retweets 0 likes
The product we launched today is a corporate charge card, yes. A business pays off all purchases after the statement closes. There are other ways to back credit cards. "Who knows what the future holds."
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.