Basic JV Question - Credit Card

[Nir]

Hi All,

I purchased a Plex with a JV partner.

By coincidence, the week of closing, when I went to the bank for something else, they asked if I want a VISA card (I was automatically approved without a credit check). So I thought I need a new one anyway for the JV and said yes. (my personal visa is with another bank)

I don`t mind using the new card for our JV. However, have a couple basic questions for the more experienced JV investors:

- Is it OK to use a credit card under your name as the JV operations manager or do you still recommend applying for a credit card together since it`s a JV. (if applying together, it might be more difficult to get approved?)

- Obviously, the card will only be used for our JV related purchases. Should I still call VISA and ask them to add my JV partner`s name to the card and send him a card as well? He will not use the card but apparently that is the only way to allow him access online to what is going on with the visa. OR is it better just to keep it under my name and keep all the Visa statements so my partner can see them on a monthly basis (but not daily on-line as mentioned)?

THANKS.

 

[westboundventures]

QUOTE (investmart @ Nov 9 2009, 06:04 PM) Hi All,

I purchased a Plex with a JV partner.

By coincidence, the week of closing, when I went to the bank for something else, they asked if I want a VISA card (I was automatically approved without a credit check). So I thought I need a new one anyway for the JV and said yes. (my personal visa is with another bank)

I don`t mind using the new card for our JV. However, have a couple basic questions for the more experienced JV investors:

- Is it OK to use a credit card under your name as the JV operations manager or do you still recommend applying for a credit card together since it`s a JV. (if applying together, it might be more difficult to get approved?)

- Obviously, the card will only be used for our JV related purchases. Should I still call VISA and ask them to add my JV partner`s name to the card and send him a card as well? He will not use the card but apparently that is the only way to allow him access online to what is going on with the visa. OR is it better just to keep it under my name and keep all the Visa statements so my partner can see them on a monthly basis (but not daily on-line as mentioned)?

THANKS.

I would just make the VISA statements available to your JV Partner. If your JV partner needs to follow your expenditures daily, I think there is a larger trust issue going on.

 

[Nir]

Thanks Peter!

 

[AndyLuchies]

QUOTE (investmart @ Nov 10 2009, 03:07 PM) Thanks Peter!


You could also simply give your JV partner the card number and your sign-in info. This would allow him to check the reports online as he wants, but he still can`t use the card himself.

 

[westboundventures]

QUOTE (AndyLuchies @ Nov 11 2009, 03:16 AM) You could also simply give your JV partner the card number and your sign-in info. This would allow him to check the reports online as he wants, but he still can`t use the card himself.

This is a valid point, however I would be careful you aren`t encouraging your JV partner to second-guess all of your day-to-day purchase decisions.

Your time is not best spent explaining your purchases to your JV partner. The ideal partner would be fine with reviewing expenses every few months on the statements you give them.

 

[WadeFenner]

Yikes

Hello,

I understand the basic thought pattern but I feel the concept is way off track. Whats the plan get a new credit card everytime you start a new JV relationship with somebody?

Provide quarterly, bi-annual, or annual bookkeeping statements as per your agreement and be done with it.

Look for ways to simplify your business. And have your own credit card.



QUOTE (investmart @ Nov 9 2009, 07:04 PM) Hi All,

I purchased a Plex with a JV partner.

By coincidence, the week of closing, when I went to the bank for something else, they asked if I want a VISA card (I was automatically approved without a credit check). So I thought I need a new one anyway for the JV and said yes. (my personal visa is with another bank)

I don`t mind using the new card for our JV. However, have a couple basic questions for the more experienced JV investors:

- Is it OK to use a credit card under your name as the JV operations manager or do you still recommend applying for a credit card together since it`s a JV. (if applying together, it might be more difficult to get approved?)

- Obviously, the card will only be used for our JV related purchases. Should I still call VISA and ask them to add my JV partner`s name to the card and send him a card as well? He will not use the card but apparently that is the only way to allow him access online to what is going on with the visa. OR is it better just to keep it under my name and keep all the Visa statements so my partner can see them on a monthly basis (but not daily on-line as mentioned)?

THANKS.

 

[Thomas Beyer]

QUOTE (investmart @ Nov 9 2009, 07:04 PM) ..

- Is it OK to use a credit card under your name as the JV operations manager or do you still recommend applying for a credit card together since it`s a JV. (if applying together, it might be more difficult to get approved?)
.
I`d treat a CC TOTALLY separate from the business. It is in your name anyway. You are personally liable for any expenditure on it.

Just invoice appropriate expenses back to JV .. be it on this VISA card or on another.

You could treat this VISA as a "system" in that all expenditure, say from Rona for a new sink, gas for driving or a new bucket of pant from Canadian Tire shows up on this one VISA card. But, depending on volume, it may be easier to invoice back to JV monthly regardless of source of payment (be it cheque, cash or CC)