The leveraging and buying power that an open-ended account allows a business owner to keep his own personal credit and assets off the business transaction table. Like a credit card, each time you repay the funds in your credit line for business, they are available again for you to spend. However, it’s always only up to the amount of your credit limit.
Brand new businesses have to accomplish some preliminary steps before being granted a credit line for business. So make sure you have obtained all the necessary business permits, registrations and licenses required by local and state governments. You must also have a federal tax ID number which is like a social security number for businesses.