I need to Pay off Credit Card DebtI' m gonna have to pay off the credit card debt.
However, this can be hazardous as if your businessperson eventually goes down, then you are held personally accountable for these indebtedness. When you are a private entrepreneur, you and your company are considered as one unit and are therefore fully responsible for all debt arising from your entrepreneur.
Even if you are in a regular relationship, you and your associate are individually responsible for all debt incurred by the company. In these two transactions, all financings, etc., are made on behalf of your company and the company is responsible for repayment.
But what if you couldn't find a way to pay your company alone? However, some creditors can only grant commercial credits if you give a face-to-face surety, which means that you must ensure your own face-to-face fortune against the credit if the company is not able to maintain it. Paying off your debt with your credit card may seem like a good short-term option, but is it worth thinking about how you will handle this debt in the near-term?
When the worst happens and the deal goes down, not only can it be the deal you lose, but your ability to pay can be badly compromised. Instead of just paying off a certain debt with your own cash, there are some conditions under which giving your company your own cash can be made a more formally binding agreement.
Subsequently, a form should be drafted in which the date, amount and, where appropriate, the objective of the credit, the interest rates and the amortisation table should be specified.