Last Updated on Feb 28, 2020 by James W


It is common knowledge to business owners to keep personal finances and business finances separate. There will be times when you take personal money and put it into the business to either keep it running or for growth. Hopefully, with time, you will be taking money from the business and putting it you’re your personal account; paying yourself. It is important to note that even though you keep the finances separate, there are things that you do in your personal financing practices that will show up in your business financing. Be careful or you could find yourself in trouble in your business finances.

Credit Cards

Never use a personal credit card for anything you plan on claiming as a business expense. Once you use a card, anyone wanting to see the business books will want to know if you have used it for any other expenses through you may want to hide from prospective lenders or investors. This personal card’s usage will not become part of your business. Get a business credit card and use that instead.

Payday Loans

Payday loan companies are very good at getting any money owed to them through no credit checks. If you have taken out one of these short term loans for personal reasons, they will not hesitate to try and get the money from your business. People who get these loans often end up in a cycle, paying only the interest and renewing the loan for long periods of time. In an attempt to get out of the cycle, you may feel it is a good idea to get the loan in the business name. This will only lead to a new cycle with your company’s assets involved.

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Personal Loans

When you own a business and need any type of business loan, the loaning company is going to ask for your personal finance statement too, unless the business is big enough or old enough to have a proven record. Loan officers want to see how you handle money and the best way to do that is by looking at how you manage your own money. They also want to make sure you do not owe more money than you can reasonably pay as you may end up using business money for personal reasons and drag the business down.

When you own a business, your personal finances are scrutinized by lenders, investors and merchants until the business has enough of a track record to stand on its own. While incorporating will separate you legally from the business, as an officer your personal finances will still be looked at. When you are handling bills for the company, the amounts will be larger than the bills you pay for yourself. This can get things confused in your mind, you will not think it unusual to write a check for big amounts. You need to be aware of what you are buying and its purpose and keep your personal finances within your personal budget. Letting personal finances get out of hand will only look bad for your business and could keep you from getting the funding you need for growth.



Founder and chief editor of Blogger, Affiliate Marketer, Tech and SEO geek. Started this blog in 2011 to help others learn how to work from home, make money online or anything related to business and finances. You can contact me at