Owner Operator Credit Limit

I've been with Schneider a year now and am very happy, I'm moving over to the IC side in February. I recently applied for a business credit card, she said my limit was 20k I about chocked, I talked to another IC and he said you never know, but realistically I think 7500-10k is more than enough. Managing business exspences is very important , but I don't think I need 20k in credit, suggestions for a rookie IC would be much appreciated.

We mainly help new company drivers here on TT. So your question might be out of our depths.

I've been with Schneider a year now and am very happy, I'm moving over to the IC side in February. I recently applied for a business credit card, she said my limit was 20k I about chocked, I talked to another IC and he said you never know, but realistically I think 7500-10k is more than enough. Managing business exspences is very important , but I don't think I need 20k in credit, suggestions for a rookie IC would be much appreciated.

Speaking in general terms, as a business owner - the bigger limit you get - the better.

It's less a matter of actually USING IT, than having it there for "unforeseen expenses". Until you build a "prudent reserve" for a few months business operating expenses, plus a maintenance account and consumables account - it's better to have and NOT NEED - than to NEED AND NOT HAVE.

So take the $20K limit - and make believe it's not there. As long as your cash flow is good - there's no reason to pay interest and carry credit card balances anyway. As you keep your balance low (or pay it off every month), your credit line will increase - again, not a bad thing. Especially as a small business owner. It will give you the opportunity to get better rates on equipment purchases and other potential lines of credit (fuel cards, etc.).

The above advice is generalised for any small business owner - and not an endorsement of being an O/O.

Rick