Getting ROI on Your Personal Guarantee

ROI, or return on investment, is a term that you may hear often. However, many have never considered it in terms of a personal guarantee (PG). Yet, if you think about it, giving a guarantee on a loan is an investment of sorts. According to Dictionary.com, the definition of investment is “the action or process of investing money for profit or material result.”

With a personal guarantee, you are putting your assets on the line as a way to get funding for your business in hopes of helping it survive and thrive. Since your guarantee is an investment in your business, and all investment involves risk, the question then becomes how do you minimize risk and increase ROI.

Why Take the Risk at All?

When small business owners are looking for a business loan, often banks will ask for personal guarantees. In particular, when a business does not have an extensive credit history, a lender’s risk is higher. As a result, the lender will require a guarantee to mitigate their own risk.

However, no company owner can give a guarantee for everything. It’s not practical. All of your personal credit would be tied up. Your personal credit score could plummet. You have to find the balance between when it is worth it to give a guarantee and when you should pursue another option. Understanding the potential return on investment (ROI) for your PG is vital to knowing if it is worth it, or not.

What Makes the Risk Worth It?

There are a few things that make the investment of a PG worth the risk. The first is, if you need immediate funding for your company and you cannot get it any other way. If it’s a choice between giving a guarantee or not getting the funds you need, it may be worth it to give a guarantee.

That is, assuming that the chances are high that the funds you get will have the desired effect of helping your business grow and thrive. Then it will be a good ROI on your personal guarantee.

It may also be worth it if the guarantee will significantly decrease the interest rate on the loan. Decreasing interest expense means you get the funds at a lower cost, which results in a higher ROI.

When are Personal Guarantees Not Worth It?

For business owners, it has to all be about value. Lenders will take a personal guarantee every chance they can get. Yet, it puts an owner’s personal assets on the line. In small business lending, this means lenders can legally claim whatever is pledged to secure the loan agreement. Consequently, you have to determine if the ROI on your guarantee is worth the potential cost.

If your business fails, then your personal assets will go to the lender. Unless your personal finances are infinite, you probably don’t have a lot of assets that are sufficient for a PG.

After real property, what other assets do you really have? Investments might work. But then, of course, you can lose them if your business defaults. If a small business owner is relying on a certain asset for something specific, like retirement financing, it could spell disaster. The risk, for a lot of owners, is too great. You could lose it all. That is not an acceptable ROI.

However, if you feel that the funds will help you to grow your business substantially and the risk to your personal assets is low, you may have an ROI that is acceptable to you.

What are the Risks of Defaulting on a Business Loan?

For newer businesses, the chance of failure is about 20% in the first year. It’s about a 50-50 chance a business will survive to see its fifth year.

This is why small business loans are a big risk for lenders. A lender asks for a personal guarantee to give the owners a greater stake in the company’s success. When a small business loan could cost an owner his or her future, then there’s more incentive to work toward company success.

That is where the ROI for the lender comes in. They get the loan funds back plus interest. But what about the owner? What owner isn’t going to work for business success regardless, whether their personal assets are on the line or not?

As an owner of a business, you have to know when it is necessary to give a guarantee. Then, you have to know when there is another choice and how to walk that path.

When do Small Business Owners Have to Provide a Personal Guarantee for a Business Loan?

There are a few times when a company owner has no option but to give a guarantee.

SBA Loans

SBA loans will always require a personal guarantee for loans over a certain amount. The Small Business Administration requires guarantees even from owners of well-established businesses. Furthermore, it will want them from all business partners.

This is in addition to all the other things the SBA wants to accompany a loan application. They require collateral, a business plan, a business proposal, possibly accounts receivable, and other financial statements.

That’s not to say an SBA loan is bad. There are other factors which make SBA loans worthwhile. Interest rates tend to be lower for one thing. That means the money you get costs less.

That is the definition of ROI on personal guarantees. If you get more money for less cost, and the benefits to your business are worth it, you have an acceptable ROI on your personal guarantee.

Term Loans from Traditional Lenders

Traditional lenders are likely to ask for personal guarantees regardless of whether you are applying for SBA loans or other traditional loans. They want a small business owner to repay any debt, and this is how they hedge that bet. So, for any small business loan you apply for with a traditional lender, you are likely to have to provide a guarantee.

Your goal, as the business owner, is to reduce the number of loans you need that require a guarantee overall. Then, of those that do require one, figure out how to reduce the amount of the guarantee required.

How to Reduce The Necessity for a Guarantee

SBA loans and traditional loans almost always require personal guarantees. So, the first way to reduce the number of guarantees you have to give is to use other types of business credit.

That means vendor credit and business credit cards. To do this in a way that reduces personal guarantees, you have to separate your business from yourself. That requires a Fundable Foundation.

A Fundable Foundation requires:

Separate contact information
An EIN
Incorporating
A separate, dedicated business bank account
A professional business website and email address with the same URL

Once you are set up this way, you can apply for vendor credit in the name of your business. Look for the vendors that do not require a guarantee or a credit check for initial credit, and that will report your payments to the business credit reporting agencies.

As payments are reported on more accounts, your business credit score will grow, helping you get approval on even more accounts without a PG.

How Does Business Credit Increase ROI on Your Personal Guarantee?

It’s almost like a domino effect. As you build a stronger business credit score without a PG, you are eligible for more and more accounts without personal guarantees. Eventually, you’ll be able to get a business credit card without a guarantee.

Here’s where things really start working in your favor. Use these accounts as much as possible. Be sure to responsibly repay credit issued to you. Rely on these accounts as much as you can, and you will reduce your need for a loan. In turn, you reduce your need to give a PG. There is an inverse relationship between personal guarantee and the amount of funds you get with it. The more money you can get with less personal guarantee, the higher the ROI.

An Oversimplified Example

Say you apply for a $10,000 business loan. The lender approves it, but you have to put up a guarantee for the entire amount. That means if your business defaults, you are responsible for the whole thing. You have the potential for an excellent ROI if the business doesn’t default, but if you have issues, you could lose $10,000 of your personal funds.

But, consider the same scenario except, due to your strong business credit score, the lender requires a 50% personal guarantee. Your potential ROI on that is much better, because at the most, you would only personally be responsible for $5,000.

As your business credit score goes, the need for a personal guarantee decreases, making your ROI on PG increase.

Is There More Than One Kind of PG?

Yes!

Usually, we think of an unlimited personal guarantee. However, there are also limited guarantees. A limited guarantee allows a lender to collect a certain amount of money or a certain percentage of the outstanding balance from a principal or business owner. These guarantees are common when there are several principals who can pay a certain fraction of the debt. For instance, if a small business defaults on its loan, the lender can go after each principal for 25% of the balance.

With a limited guarantee, the business owner has some protection. Not all their assets are on the line, which in itself increases borrower ROI. Since lenders can seek repayment from more than one of the owners, there is still value, even if the business fails and does not fully pay the debt. This is another way to increase the ROI on your personal guarantee.

When Can Business Owners Get More Value from Providing a Guarantee?

Sometimes, you need to make investments in equipment or inventory in a short time frame. Or you may want to buy quickly in order to hedge against rapidly rising inflation. In this case, after business owners evaluate risk and costs, they may determine that gambling on personal liability is worth it. That is when you weigh the potential ROI against the guaranteed ROI of nothing if you do not take advantage of the opportunity.

The initial investment may be scary, but it may also be worth it in the long term if it helps your business grow, thrive, and reach its full potential. In the end, business loans are risky on all sides. However, without risk there is no growth. No one starts a business and hopes it never grows. Growth is the first goal. Business growth equals profit growth, which is the ultimate ROI.

Loan agreements that require personal guarantees definitely have the potential to reduce ROI on the business overall. So, it is vital to carefully consider any loan agreement to discern whether it is worth it, or not.

As always, whether or not a PG is necessary is not the only thing to consider. There are also loan fees and legal fees that come into play. Pay attention to those. They can add up.

What Does it Take to Get Maximum ROI on Your Personal Guarantee?

As with other investments, the ROI on your personal guarantee depends on a number of factors. The key is to protect your own credit history while still giving your company it’s best shot. If an owner needs to personally guarantee funds, that isn’t a bad thing. Yet, it is important for small businesses to balance that with other credit that does not require that personal assets be sacrificed.

This means that the company has to have credit in the name of the business, separate from that of the owner. This business credit will not remove the need for a PG completely, but it can reduce it drastically. It can increase the amount of credit available without a guarantee, and reduce the amount of guarantee necessary for those accounts that still require one.

Another thing business credit can do is help you get lower interest rates on accounts. Since that means the funds cost less, it’s an automatic boost to ROI. Anytime you can get lower interest it’s a good thing.

Balance is key. Find out how to set your business up to get the most possible funding without a personal guarantee with a free Business Finance Assessment.

The post Getting ROI on Your Personal Guarantee appeared first on Credit Suite.

The Truth About Business Funding With No Personal Guarantee Credit

Does business funding with no personal guarantee credit exist? The simple answer is yes. How do you get it, and do you even need it? Those are harder questions to answer.

What’s the Real Story Behind Business Business Funding With No Personal Guarantee Credit?

To some, it may seem like a mythical idea, a unicorn if you will. Even if you have strong business credit, many lenders will ask for a personal guarantee on a business loan. So, what are companies talking about when they say you can fund a business with no personal guarantee credit? Let’s find out.

What is Business Credit?

Before we can talk about no personal guarantee credit for business funding,we need to define a few terms.

First, we’ll define business credit. Business credit is credit, like a credit card or other type of credit account, in the name of your business rather than in your name personally. When you apply, you use your business name, your business contact information, and your EIN instead of your social security number.

What frustrates you the most about funding your business? Check out how our free guide can help.

Then, the business is responsible for repayment. Sometimes, the account does not report to your personal credit report. Meaning, your personal credit scores will not be affected by your business credit accounts.

Business Credit vs. Business Credit Report

Now, let’s talk about your business credit report. This is a report, like your personal credit report. Lenders use it to evaluate the creditworthiness of the business. It consists of the credit history of the business, the business credit score, and other data. The business credit score is made up of the payment history of those business credit accounts that actually report to the business credit reporting agencies.

Not all business accounts will do that. But those that do, are the ones that make up the score on the business credit report.

Personal Guarantee

To understand what no personal guarantee credit is, you have to know what a personal guarantee is. If you get a credit account with a personal guarantee, you are responsible for repayment. By definition, all personal credit accounts have a personal guarantee.

This could mean a hard pull on your personal credit, which can lower your personal credit score. However, in theory, if your business has an account in its own name and it is set up to be a separate entity from you, the owner, it is responsible for its own debt.

Still, many companies require a personal guarantee from the business owner before extending business credit, especially small businesses. This is due to many factors, including data from the Bureau of Labor statistics that states 20% of new businesses fail within the first year, 45% within the first 5 years, and 65% in the first 10 years. In fact, only 25% of new businesses make it 15 years or more.

It’s easy to see why lenders and credit card companies would ask for a personal guarantee from business owners when it comes to business credit.

What frustrates you the most about funding your business? Check out how our free guide can help.

Can You Get No Personal Guarantee Credit for Business Funding?

The short answer to this is yes, but it is not that simple. First, most business accounts that do not require a personal guarantee are designed for larger businesses or older businesses.

There is very little out there when it comes to no personal guarantee credit for small, newer businesses. There are some vendors that will extend net terms without a personal guarantee if your business meets certain requirements.

Requirements may include a certain minimum time in business, a minimum average balance in a business bank account, specific annual revenue, and more. Other than that, there are a couple of business charge cards you can get without a personal guarantee. For example, Brex and Divvy both offer this type of product.

The catch is, these are charge cards, not credit cards. So you have to pay the balance off each month. Basically, it’s like a card that you can use anywhere and you have net 3o terms on the balance. It’s similar to a vendor account, but more flexible.

There are also business credit cards available without a personal guarantee, but only if your business credit is strong enough. In general, your business needs to be earning millions in annual revenue to qualify for these cards.

What’s so Bad About a Personal Guarantee?

Why try to avoid a personal guarantee? No one likes risk. That’s why businesses require a personal guarantee and why business owners don’t love to give one. However, if you have true business credit that requires a personal guarantee, the business will have to pay first. You will be personally liable for anything that the business cannot cover. Still, you will not be first in line for all of it.

A Personal Guarantee can Accelerate Your Business Growth

A better option is to realize that if your business is small and young, you are likely going to need a personal guarantee for much of the funding. Yet, you can work to reduce your liability in a number of ways. The first way to do that is to incorporate your business as a corporation, S-corp, or LLC. Your business attorney or accounting professional can help you with that.

Next, you can look at funding options that do not require credit at all. Does this debt-free funding even exist? Sure it does.

Grants, Crowdfunding, Angel Investors, ROBS, and more can be used to get as much funding as possible without any repayment.

Work on Building Business Credit

Then, you can work on building a strong business credit profile for your business, including a strong business credit score. This will help you be able to get funding for your business without as much reliance on a personal guarantee. Basically, the stronger the business credit, the less the lender feels the need to rely on the owner’s creditworthiness.

The key to this is to look for creditors who will report positive payment history to your business credit profile. Even some lenders that require a personal guarantee may report payments to your business credit report and not your personal credit report.

Stop worrying about the personal guarantee and worry more about building business credit so you can reduce the amount of personal guarantee required to get the funding you need.

Get Funding While Building Business Credit

If you cannot get all of the funding you need for your business with non-debt options, and your business is young and small, you may very well have to use a personal guarantee to get the funding you need in the beginning. That is okay.

What frustrates you the most about funding your business? Check out how our free guide can help.

The key is to know exactly what you are getting. Definitely make sure you apply with your business name, EIN, and contact information. Then find out what credit agencies they report to. If they report to the business credit agencies like Dun & Bradstreet, Experian Business, or Equifax (Business), that is a good thing. It will help you reach your goal of building business credit faster.

If they report to personal credit, so be it. Just keep working through the process of building your business credit profile as quickly as possible. Then, you can tip the scales away from your personal liability as much and as quickly as possible.

Debt-Free Funding

If you really want to stay away from a personal guarantee, you can try one of these debt-free funding options. Just remember, debt-free doesn’t mean cost-free. There are always some costs associated with funding.

Rollover for Business Startups (ROBS)

This is a 401(k) Rollover for Working Capital program. It’s also known as a Rollover for Business Startups (ROBS). Per the IRS, a ROBS qualified plan is a separate entity with its own set of requirements. The plan owns the business through its company stock investments, rather than the individual.

This type of financing isn’t a loan against your 401(k), so there’s no interest to pay. It does not use the 401(k) or stocks as collateral. Instead, this is simply a movement or change of custodian. The plan has to be a plan from an employer you no longer work for, and you can no longer be contributing.

Crowdfunding

Crowdfunding is a way of getting multiple smaller donations from a lot of individuals. Hence the term “crowd” in crowdfunding. There are many options for crowdfunding platforms, but be sure you know what you are getting into. Many crowdfunding platforms make you give all of the funding back if you do not make your goal by the end of the campaign.

They will take a percentage of the donations. That’s how they make their money. In addition, they may push to have you deliver on your promises. Crowdfunding tends to work best when donors can personally connect with a product or service . Straightforward businesses may not do so well.

The kinds of businesses which do the best often associate with products not quite on the shelves yet or artistic endeavors.

Angel Investors

While there are “professional” angel investors out there, an angel investor can be pretty much anyone. It could be a friend or family member sitting on home equity, or local professionals who are looking to invest. Consider people you know well and people you may not know so well.

What frustrates you the most about funding your business? Check out how our free guide can help.

Grants

There are some grant options available, and of course those do not have to be repaid. However, they are highly competitive, and it is unlikely it will be enough to fully fund your business. Also, grants will require time on your part to prepare all necessary paperwork. Some even require an application fee.

Other Funding Options

No personal guarantee credit for business funding is great to have. Still, chances are you are going to need a personal guarantee to get funding at some point. There are a lot of good options out there. In fact, SBA loans are a great option. You can also look into alternative lenders like Fundbox and OnDeck or Accion.

Using a personal guarantee to get the ball rolling while you work on building your business credit profile is a valid option. It is what most business owners have to do. But, you need to build a strong business credit score so lenders can start to rely more on the credit worthiness of your business than you personally. Credit Suite has a whole program designed to help do just that. Find out more about the Business Credit Builder now.

The post The Truth About Business Funding With No Personal Guarantee Credit appeared first on Credit Suite.

Get Business Credit Cards with no Personal Guarantee in a Business Recession

Get Business Credit Cards with no Personal Guarantee and Beat the Business Recession

Do you know how to beat the business recession? You get business credit cards with no personal guarantee? We do, and we are here to show you how. This method will work no matter what is happening with COVID-19.

Normally, getting credit isn’t easy.

You know what I’m talking about. You looked around the big banks, and then the medium-sized banks and then the small ones. And you tried the banks where you do business. And you also tried the others suggested by your friends or business associates. But after your long quest, you were unable to acquire any kind of a small business credit card without a personal guarantee.

Recession Period Funding

The number of American banks as well as thrifts has been decreasing slowly for 25 years. This is from consolidation in the marketplace as well as deregulation in the 1990s, lowering barriers to interstate banking. See: https://www.fundera.com/blog/happened-americas-small-businesses-financial-crisis-six-years-start-crisis-look-back-10-charts

Assets focused in ever‐larger banks is problematic for small business proprietors. Big financial institutions are much less likely to make small loans. Economic declines mean banks become extra careful with lending. Fortunately, business credit does not count on financial institutions.

The Baddish News – in the Business Recession and Beyond

There are over 500 distinct business credit cards around but less than fifty of them grant credit to companies in the absence of a personal guarantee. Complicating matters, these cards are not marketed or granted to all interested clients.

You can identify with the banks’ viewpoint. They don’t like risk so they attempt to diminish it by securing a business credit card. They accomplish this by asking you, the business owner, to guarantee payments from your private finances. So, this is in the event of business default.

If worst comes to worst, and as a guarantor or co-signer you are not able to pay the financial obligation, then your individual assets will be executed. If you provide a personal guarantee and don’t pay your business credit card bills, the bank can seize your accounts, your vehicle, your residential property, and your stocks.

And they can seize whatever else you may have used to guarantee that card.

But your standpoint, of course, is that you need to have this card to run your company better.

Get Business Credit Cards with no Personal Guarantee in a Business Recession: What You Can Do

The first thing you can do, and it’s easier said than done, is to have patience, and grow creditworthiness for your small business in the same manner that you have established your personal credit history. For most companies, this means paying your debts punctually, plus staying in business for a while, to develop a record of creditworthiness.

To get rid of the sticking point of a personal guarantee, you will have to demonstrate to the bank that your small business is solid. And you have to show that it can produce consistent earnings, and it has a substantial cash flow.

And the business needs to have a flawless payment history. If all the above can be shown, it will be a lot easier to find small business credit cards with no personal guarantee.

This is how to start establishing business credit without personal guarantee.

Get Business Credit Cards with no Personal Guarantee in a Business Recession: Here are Measures You Can Take:

Get Business Credit Cards with no Personal Guarantee in a Business Recession: Step 1

Set apart yourself from your company. This means you can help your cause by incorporating or becoming a limited liability company (LLC). This is a separate entity from the owner(s). And it means you must register for a separate identification number with Internal Revenue Service.

If your business is already an LLC you can skip this step altogether.

Find out why so many companies are using our proven methods to improve their business credit scores, even during a recession.

Get Business Credit Cards with no Personal Guarantee in a Business Recession: Step 2

Get several company credit cards with personal guarantees. The ones with high spending limits will be better. This is because they are the only ones reported to the business credit agencies. And you definitely want business credit cards that do not report to personal credit.

Make sure when you buy these products, they have the personal guarantee removal feature baked right in. Keep your credit utilization at one third of your credit limit or less. Pay in a timely manner every time.

Make sure to use these small business credit cards to make your business’s large orders. These purchases, in combination with a low revolving debt and of course on time payment will all help.

These actions will demonstrate to the bank that your company can control its financial resources well. It will also persuasively show that the profit your business yields is enough to take care of financial obligations and more.

This can lead to an unsecured business credit card no personal guarantee.

Details

Make certain that your personal credit history stays spotless. Eventually, you can file a personal guarantee removal request for these preexisting business credit cards. So, this is normally six months to one year.

The financial institution will hold an account review. But they could also consider your private credit report. If the bank approves your request then you have met your goal. If the bank says no, don’t lose hope. Just go to the next step.

No personal guarantee business credit cards can be yours.

Get Business Credit Cards with no Personal Guarantee in a Business Recession: Step 3

You can elect to make an application for third-party guaranteed lending. For example, this could be an SBA loan, for financing. Settling such a loan will help you develop your business credit score.

You can also make an application for a small business credit card from a particular retailer. These retail credit cards often do not require a personal guarantee. Chose a store where your company makes purchases often. And by all means do not forget about those prompt payments!

These retail credit cards, along with an SBA loan will raise your PAYDEX score from Dun and Bradstreet. If you are unfamiliar with the term, the quick version is that PAYDEX is for businesses what FICO is for people.

Retail credit cards will give you an extra advantage from the start. This is because they will decrease your personal liability for your company debt. These are business credit cards for new businesses without personal guarantee.

Ask the financial institution again to take off the personal guarantee clause. Or apply for new business credit cards without any personal guarantee. Yes, new business credit cards without personal guarantee are possible.

You can try this once you have gotten an 80 PAYDEX score under the above conditions. This is when your opportunity to get such credit cards will increase exponentially.

Another Technique to Get a Business Credit Card with no Personal Guarantee in a Business Recession

You can instead apply directly for those very few small business credit cards with no personal guarantees. You should apply for business credit card no personal guarantee. For example you can opt for Sam’s Club® Business MasterCard® or the Bremer Bank Visa® Signature Business Company Card.

Each specific card of this type asks you, the business owner, to satisfy a set of conditions. But these conditions will differ from one card to another. For a Sam’s Club ® Business MasterCard ® you need your business to bring in over $5 million in yearly sales.

The Bremer Bank Visa ® Signature Business Company Card is available for businesses with annual revenues between $1 million and $10 million. But at the same time other company credit cards with no personal guarantee attached call for an open Dun & Bradstreet file. Plus there can be other requirements to be met.

Be sure to consult the card issuer. And read through all the specifics of the promotion carefully.

Business Credit Cards with no Personal Guarantee in a Business Recession: Build Business Credit

Increase your chances big time by building business credit!

Small business credit is credit in a business’s name. It doesn’t link to an owner’s individual credit, not even if the owner is a sole proprietor and the solitary employee of the company.

Accordingly, a business owner’s business and consumer credit scores can be very different.

The Advantages

Considering that small business credit is distinct from individual, it helps to protect a small business owner’s personal assets, in case of legal action or business insolvency.

Also, with two distinct credit scores, a business owner can get two different cards from the same merchant. This effectively doubles buying power.

Another benefit is that even new ventures can do this. Visiting a bank for a business loan can be a formula for frustration. But building company credit, when done properly, is a plan for success.

Individual credit scores rely on payments but also additional components like credit usage percentages.

But for business credit, the scores actually only hinge on whether a small business pays its debts promptly.

The Process

Establishing business credit is a process, and it does not happen automatically. A small business will need to actively work to develop small business credit.

Having said that, it can be done easily and quickly, and it is much speedier than establishing personal credit scores.

Merchants are a big part of this process.

Carrying out the steps out of sequence will cause repetitive denials. Nobody can start at the top with small business credit. For example, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

Starting with vendors is how to get easy business credit cards no personal guarantee.

Company Fundability

A business must be fundable to loan providers and merchants.

Hence, a company will need a professional-looking website and e-mail address. And it needs to have website hosting from a company like GoDaddy.

Plus, company telephone and fax numbers ought to have a listing on 411.com.

In addition, the company telephone number should be toll-free (800 exchange or the like).

A small business will also need a bank account dedicated strictly to it, and it needs to have every one of the licenses essential for running.

Licenses

These licenses all must be in the correct, appropriate name of the small business. And they need to have the same business address and phone numbers.

So keep in mind, that this means not just state licenses, but potentially also city licenses.

Working with the Internal Revenue Service

Visit the Internal Revenue Service website and obtain an EIN for the small business. They’re totally free. Select a business entity like corporation, LLC, etc.

A company can start off as a sole proprietor. But they will probably wish to switch to a kind of corporation or an LLC.

This is in order to minimize risk. And it will make the most of tax benefits.

A business entity will matter when it involves tax obligations and liability in case of a lawsuit. A sole proprietorship means the business owner is it when it comes to liability and tax obligations. No one else is responsible.

A corporate business card will be in the corporate name. Yes, that even includes corporate credit cards without personal guarantee. And it can even mean start up business credit cards without personal guarantee. This is how to get a credit card without credit.

Setting off the Business Credit Reporting Process

Begin at the D&B website and obtain a cost-free D-U-N-S number. A D-U-N-S number is how D&B gets a business in their system, to produce a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s web sites for the small business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.

In this way, Experian and Equifax will have something to report on.

Start with business credit cards without personal credit.

Vendor Credit

First you ought to build trade lines that report. This is also referred to as vendor credit. Then you will have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can begin to get retail and cash credit.

These kinds of accounts have the tendency to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first off, what is trade credit? These trade lines are credit issuers who will give you initial credit when you have none now. Terms are often Net 30, instead of revolving.

Therefore, if you get an approval for $1,000 in vendor credit and use all of it, you will need to pay that money back in a set term, such as within 30 days on a Net 30 account.

Soon, these will be business credit cards that do not require a personal guarantee.

Find out why so many companies are using our proven methods to improve their business credit scores, even during a recession.

Accounts That Don’t Report

Non-Reporting Trade Accounts can also be helpful. While you do want trade accounts to report to a minimum of one of the CRAs, a trade account which does not report can still be of some worth.

You can always ask non-reporting accounts for trade references. And also credit accounts of any sort should help you to better even out business expenditures, thus making financial planning simpler. These are providers like PayPal Credit, T-Mobile, and Best Buy.

These won’t start out as small business credit cards without personal guarantee. But in time, they can be credit cards for businesses with no personal guarantee.

Retail Credit

Once there are 3 or more vendor trade accounts reporting to at least one of the CRAs, then move to retail credit. These are businesses like Office Depot and Staples.

Fleet Credit

Are there more accounts reporting? Then move onto fleet credit. These are companies such as BP and Conoco. Use this credit to purchase fuel, and to fix, and maintain vehicles. Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make sure to apply for business credit card no personal guarantee using the small business’s EIN.

By now, you’ll get a business credit card no personal credit check.

Find out why so many companies are using our proven methods to improve their business credit scores, even during a recession.

Cash Credit

Have you been responsibly handling the credit you’ve up to this point? Then move onto more universal cash credit. These are companies like Visa and MasterCard. Just use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

These are normally MasterCard credit cards. If you have more trade accounts reporting, then these are doable.

Make sure to use the business EIN to apply for business credit card without personal guarantee. Then you will get a business credit card no personal guarantee.

A Word about Business Credit Building in a Business Recession

Always use credit sensibly! Never borrow beyond what you can pay off. Monitor balances and deadlines for repayments. Paying in a timely manner and fully will do more to boost business credit scores than almost anything else.

Establishing small business credit pays off. Excellent business credit scores can help a business get a business loan no personal guarantee. Your lending institution knows the business can pay its financial obligations. They recognize the small business is authentic.

The company’s EIN links to high scores and loan providers won’t feel the need to request a personal guarantee.

Business credit is an asset which can help your business for many years to come. It’s really the only way to get a business credit card no personal guarantee required.

Get Business Credit Cards with no Personal Guarantee in a Business Recession – These Could be Yours

With patience and over time, you can get business credit cards with no personal guarantee. All you need to have is what the banks ask. That is, a dependable small business generating consistent profit, with a strong cash flow. And then, you will have what it takes.

This is how to get business credit card without personal guarantee. The COVID-19 situation will not last forever!

The post Get Business Credit Cards with no Personal Guarantee in a Business Recession appeared first on Credit Suite.

Business Credit Card That Doesn’t Require Personal Guarantee

Are you looking for a business credit card that doesn’t require personal guarantee?

Get a Business Credit Card That Doesn’t Require a Personal Guarantee

We researched a ton of company credit cards for you. So, here are our top picks.

Per the SBA, business credit card limits are a whopping 10 – 100 times that of consumer credit cards!

This shows you can get a lot more funds with business credit. And it also shows you can have personal credit cards at retail stores. So, you would now have an additional card at the same shops for your small business.

And you will not need collateral, cash flow, or financial data to get small business credit.

Business Credit Card That Doesn’t Require a Personal Guarantee: Advantages

Benefits can differ. So, make certain to choose the benefit you would prefer from this choice of options.

Business Credit Card That Doesn’t Require a Personal Guarantee: 0% APR – Pay Nothing!

Bank of America® Business Advantage Travel Rewards World Mastercard® Credit Card

The Bank of America® Business Advantage Travel Rewards World Mastercard® credit card has no annual fee and comes with a 0% introductory APR on purchases for the initial nine months. Afterwards, the card has a 13.24 – 23.24% variable APR

Earn 3 points/dollar spent when you book travel via the Bank of America Travel Center and 1.5 points/dollar on all other purchases. You can get unlimited points and points never expire.

Details

There is a 25,000-point sign-up bonus when you spend $1,000 in the initial 60 days of starting the account. Cardholders get travel accident insurance, and lost luggage reimbursement.

They additionally get trip cancellation coverage, trip delay reimbursement and other benefits.

There is no introductory rate for balance transfers. Also, bonus categories are limited.

Get it here: https://www.bankofamerica.com/smallbusiness/credit-cards/products/travel-rewards-business-credit-card/

JetBlue Plus Card

Consider the JetBlue Plus Card for an additional offer of a 0% introductory APR

Earn six points/dollar on JetBlue purchases, two points/dollar at restaurants and grocery stores. And get one point/dollar on all other purchases.

Details

Spend $1,000 in the first 90 days and pay the annual fee. So, then you can earn 40,000 bonus points. New cardholders receive a 12-month, 0% initial APR on balance transfers made within 45 days of account opening.

Thereafter, the variable APR on purchases and balance transfers is 17.99%, 21.99% or 26.99%, based on creditworthiness. Benefits include a free first checked bag and 50% savings on in-flight purchases.

There is a $99 annual fee for this card.

Get it here: https://cards.barclaycardus.com/cards/jetblue-card/

Outstanding Business Credit Cards with No Annual Fee

Uber Visa Card

Check out the Uber Visa Card. Uber is the very first ride-sharing service to offer a credit card, in a partnership with Visa and Barclays.

The card offers 4% back per dollar spent at restaurants, takeout and bars, including UberEATS. Also, earn 3% back on hotel, airfare and vacation home rentals. And get 2% back on online purchases.

So, this includes retailers and subscription services such as Uber and Netflix. And earn 1% back on all other purchases. Each percent/point has a value of 1 cent. Redeem points for cash back, gift cards or Uber credits directly in the app.

By spending a minimum of $500 in the initial 90 days, users can earn a $100 sign-up bonus. Cardholders spending a minimum of $5,000 per year are eligible to receive a $50 credit toward online subscription services.

Details

If you pay your cellphone bill with this card, you are insured up to $600 for cellphone damage or theft.

Cardholders are eligible for exclusive access to specific events and offers. Uber expects most of these offers to be available in major cities like New York, San Francisco, Los Angeles, Chicago and DC. There is no foreign transaction fee.

But there is no introductory rate. So the APR is a variable 16.99%, 22.74% or 25.74%, based on your creditworthiness. Cardholders with less than stellar credit will be on the higher end of the range.

Also, there are restrictions on Uber credits. To redeem points as credits within the Uber app, accumulate a minimum of 500 points, or $5. Cardholders can convert a maximum of 50,000 points, or $500, per day.

Get it here: https://www.uber.com/c/uber-credit-card/

Costco Anywhere Visa® Business Card by Citi

Not taking Uber? Then you’ll need to fill your gas tank someway. Why not do so with the Costco Anywhere Visa® Business Card by Citi?

This credit card earns cash back with every purchase. Get 4% cash back on the first $7,000 spent on eligible gas purchases annually (1% after that). Get 3% cash back at restaurants and on eligible travel purchases. Also, get 2% cash back at Costco and Costco.com. And earn 1% cash back on all other purchases.

So keep in mind: the $0 annual fee is only for Costco members. And an active Costco membership is required. Cardholders will get access to damage and theft purchase protection, extended warranty coverage and travel accident insurance.

Also, there is no sign-up bonus available with this card.

Get it here: https://www.citi.com/credit-cards/credit-card-details/citi.action?ID=Citi-costco-anywhere-visa-business-credit-card

Ink Business Cash℠ Credit Card

Check out the Ink Business Cash ℠ Credit Card. Companies can get cash back with every purchase. Spend $3,000 in the first three months from account opening. And you’ll earn a $500 bonus cash back.

There is a $0 annual fee with a 0% introductory APR for 12 months on purchases and balance transfers. Thereafter, the APR is a 15.24 – 21.24% variable.

The card comes with travel and purchase coverage benefits. So, this includes an auto rental collision damage waiver and extended warranty protection.

Details

Earn extra cash back on business categories. So, these include office supply stores, telecommunications, gas stations and restaurants.

Note: this credit card has a balance transfer fee. Pay 5% of the amount transferred or $5, whichever is greater. Also, there is a foreign transaction fee of 3%.

Get it here: https://creditcards.chase.com/small-business-credit-cards/ink-cash

United MileagePlus Explorer Business Card

Get a good look at the United MileagePlus Explorer Business Card.

Earn 2 miles/dollar with United and at restaurants, gas stations and office supply stores. All other purchases get 1 mile/dollar. Earn a 50,000-mile sign-up bonus after spending $3,000 in the initial three months from account opening.

Benefits include priority boarding, a free first checked bag for you and a companion on the same reservation.

Details

Also, get two United Club passes annually. And get hotel and resort perks including upgrades. Additionally, get early check-in and late checkout. And get an auto rental collision damage waiver.

Also, get baggage delay insurance, lost luggage reimbursement, trip cancellation and interruption insurance. Finally, get trip delay reimbursement, purchase protection, price protection and concierge service.

After the first year, the card has an annual fee of $95. APR of 17.99% – 24.99%, based on creditworthiness.

Get it here: https://creditcards.chase.com/small-business-credit-cards/united-mileageplus-explorer-business

Starwood Preferred Guest® Business Credit Card from American Express

Another alternative is the Starwood Preferred Guest Business Credit Card from American Express.

This credit card is for those who stay at Starwood Preferred Guest and Marriott hotels often. Get six points per dollar of eligible purchases at participating SPG and Marriott Rewards hotels.

And get four points per dollar at American restaurants, American filling stations, and on US purchases for shipping.

Also, earn four points to the dollar on wireless telephone services purchased directly from US service providers. For all other eligible purchases, get two points per dollar.

Details

Get 75,000 bonus points when you spend $3,000 in the initial three months of account opening. Benefits include free in-room premium internet access, Sheraton Club lounge access, and purchase protection.

Plus, you get car rental loss and damage insurance. And you get baggage insurance. There is also a global assistance hotline. And there is a roadside assistance hotline. And get travel accident insurance and extended warranty coverage.

The most significant issue is the annual fee. There is a $0 introductory annual fee for the first year, then it’s $95 thereafter. Plus, there is no 0% introductory APR. Instead, there is a 17.74 – 26.74% variable APR

Get it here: https://www.americanexpress.com/us/credit-cards/business/business-credit-cards/spg-amex-starwood-credit-card

Get Business Credit Card That Doesn’t Require a Personal Guarantee for Average Credit

Capital One® Spark® Classic for Business

For fair credit, we like the Capital One Spark Classic for Business. It has no yearly fee. There are cash-back rewards. The card earns an unlimited 1% cash back on all purchases. There is an annual fee of $0.

With this card, you will get benefits including an auto rental collision damage waiver, and purchase security. And you also get extended warranty coverage. And you get travel and emergency assistance services.

But KEEP IN MIND: the ongoing APR is 24.74% variable APR. And the penalty APR is even higher, 31.15%. Also, there is no sign-up bonus. In addition, this card reports monthly to personal credit. It does report to business credit as well, but they generally require a personal credit check and will always report to personal credit.

Get it here: https://www.capitalone.com/small-business/credit-cards/spark-classic/

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

Get a Business Credit Card That Doesn’t Require a Personal Guarantee for Luxurious Travel Points

IHG ® Rewards Club Premier Credit Card

Have a look at the IHG ® Rewards Club Premier Credit Card. it earns hotel rewards worldwide. For every dollar spent at participating IHG hotels, get 10 points. Get two points per dollar spent at gas stations, grocery stores and restaurants.

Plus, all other purchases earn one point. New cardholders can earn an 80,000-point sign-up bonus when they spend $2,000 in the first three months of account opening.

Details

This card offers a free one-night hotel stay each year. Plus, there is a variety of benefits like travel and purchase coverage and an upgrade to Platinum Elite status with the IHG Rewards Club. The club offers complimentary room upgrades when available and guaranteed room availability.

The most significant issue is that the card does not offer a zero percent APR introductory rate. And the standard APR is 17.99 – 24.99% variable. Also, the annual fee is $89.

Get it here: https://creditcards.chase.com/a1/ihg/premiernaep

Marriott Rewards® Premier Plus Credit Card

This credit card earns six points/dollar spent at participating Marriott and SPG hotels. And get two points/dollar on all other purchases.

Spend $3,000 in the initial three months from account opening and get two free night awards (each valued up to 35,000 points).

Cardholders get access to perks including a free one-night stay yearly after account anniversary. Also get travel and purchase protection. So, this includes free standard in-room Wi-Fi and priority late checkout.

Details

Perks include baggage delay reimbursement, and lost luggage reimbursement. There is also trip delay reimbursement. And there is purchase protection. Additionally, there are concierge service and automatic Silver Elite status, which includes a 20% bonus on points.

Spend $35,000 each account year and get an upgrade to Gold Elite status. So, that includes a complimentary room upgrade, free daily breakfast and 4 PM late checkout.

There is an annual fee of $95. The APR is a 17.99– 24.99% variable.

Get it here: https://creditcards.chase.com/marriott/apply

Get a Low APR/Balance Transfer Business Credit Card That Doesn’t Require a Personal Guarantee

Discover it® Cash Back

Have a look at the Discover it® Cash Back card. There is a 10.99% introductory APR for six months from date of first transfer. So, this is for transfers under this offer which post to your account by January 10, 2019.

After the introductory APR expires, your APR will be 14.99% to 23.99%. So, this is based on your creditworthiness. Your APR will vary with the market, which is based upon the Prime Rate.

Details

You can get 5% cash back at different places every quarter. So, these are places like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs. But this is up to the quarterly maximum each time you activate. Additionally, automatically get unlimited 1% cash back on all other purchases.

You will earn an unlimited dollar-for-dollar match of all the cash back you have gotten at the end of your first year, automatically.

Get it here: https://www.discover.com/credit-cards/cash-back/it-card.html

Get a Business Credit Card That Doesn’t Require a Personal Guarantee With a Credit Builder Option

Discover it® Student Cash Back

Make sure to have a look at the Discover it® Student Cash Back card. It has no annual fee. The credit card also has a six-month introductory period of 0% APR on purchases. And there is an APR of 14.99 – 23.99% variable on all purchases after that period.

One distinct feature is that it provides an incentive for students to maintain good grades with a $20 statement credit. If students earn a GPA of 3.0 or better each school year, the card will award the $20 statement credit annually. So, this is for up to five years.

Details

Use this card to build personal credit. While this is a personal credit card versus a company card, for new credit users, their FICO scores will be vital. And this credit card offers an outstanding way to raise FICO. This is while also getting rewards. Better personal credit can also, often, be the key to unlocking online lending.

You can earn 5% cash back at different places each quarter like grocery stores, gas stations, restaurants or Amazon.com. So, that’s up to the quarterly maximum. After that, this credit card offers unlimited 1% cash back on all purchases.

In the first year, all cash back rewards are matched 100%.

Downsides include a cash advance fee of either $10 or 5% of the amount of each cash advance, whichever is more. And even though they waive the first late payment fee, a fee of up to $37 applies on all other late payments. There is also a returned payment fee of up to $37.

Get it here: https://www.discover.com/credit-cards/cash-back/it-card.html

Get a Business Credit Card That Doesn’t Require a Personal Guarantee for Cash Back

SimplyCash Plus Business Credit Card from American Express

Consider the SimplyCash Plus Business Credit Card from American Express. There is a $0 annual fee. And there is a 0% APR on purchases. So this is for the first 15 months an account is open.

But when the introductory period ends, the APR for purchases is 14.24 to 21.24%. So, this is variable and based on creditworthiness.

Details

This credit card has several benefits. These include purchase protection, car rental loss and damage insurance. And they also include a baggage insurance plan, extended warranty coverage and a global assist hotline.

Also, earn 5% cash back at US office supply stores and on wireless phone services. So, these must be bought from American service providers. But this applies to the initial $50,000 of yearly spending. Then, you earn 1% cash back.

You also get 3% cash back on spending category of your choice. So, this is from eight distinct categories. They include airfare, gas, advertising and computer purchases. But it applies to the first $50,000 of annual spending. Then, you earn 1% cash back.

Cash-back bonuses are automatically credited to the customer’s billing statement.

Note: you cannot use this credit card for balance transfers. There is a foreign transaction fee of 2.7%. The credit card charges up to $38 in late fees. And the returned check fee is also $38. The penalty APR is 29.99%.

And, it applies if you have two or more late payments within 12 months. It can also apply if you fail to make the minimum payment on time or have a returned payment.

Get it here: https://www.americanexpress.com/us/small-business/credit-cards/simply-cash-plus-business-credit-card/44279

Capital One® Quicksilver® Card

Look at the Capital One® Quicksilver® Card. It offers flat-rate rewards of 1.5% on all purchases. There are no limits to the amount of cash back rewards which cardholders can earn. Also, the card has a $0 yearly fee.

New cardholders have a 0% APR on purchases and balance transfers for the first 15 months after opening the account. Then afterwards they have a 14.74 – 24.74% (variable) APR after that.

A cash bonus of $150 is on offer for those who make at least $500 in purchases within 3 months of account opening.

Details

Also, cash back rewards do not expire for the life of the account. And there is no limit to how much you can earn.

This card also offers travel accident insurance. And you get an auto rental collision damage waiver. There are no foreign transaction fees. And there is extended warranty coverage.

Downsides are the flat reward rate, not allowing for any more than that. And the higher APR after the first 15 months.

Get it here: https://www.capitalone.com/credit-cards/quicksilver/

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

Get a Secured Business Credit Card That Doesn’t Require a Personal Guarantee

Wells Fargo Business Secured Credit Card

Have a look at the Wells Fargo Business Secured Credit Card. It charges a $25 yearly fee per credit card (up to 10 employee cards). It also requires a minimum security deposit of $500 (up to $25,000). And it is designed to help cardholders set up or rebuild their credit.

Select this credit card if you wish to get 1.5% per dollar in purchases without any limits. Or earn one point for every dollar in purchases. You also earn 1,000 bonus points for every month your company makes $1,000 in purchases on the card.

Details

Also, you get free FICO scores every month. There are no foreign transaction fees. It is possible to upgrade to unsecured credit. Your account is regularly reviewed. And you may become eligible for an upgrade to an unsecured card with responsible use over time. Approval is not guaranteed and depends on factors including how you manage this and your other accounts.

APR is the current prime rate plus 11.90%. There is no introductory APR period and no sign-up bonus. This is not a credit card for balance transfers.

Get it here: https://www.wellsfargo.com/biz/business-credit/credit-cards/secured-card/

Grab a Business Credit Card That Doesn’t Require a Personal Guarantee for Jackpot Rewards

Ink Business Preferred ℠ Credit Card

Get a look at the Ink Business Preferred Credit Card from Chase. Cardholders earn 3 points for every dollar spent on travel, shipping, internet, cable, phone and qualifying advertising with the card. So, this is up to $150,000 each year. And all other purchases earn an unlimited one point per dollar spent.

This is a Visa card.

Cardholders get benefits like purchase protection, trip cancellation or interruption insurance. They also get cellphone protection. And they get extended warranty coverage. And they get an auto rental collision damage waiver.

Details

Earn 80,000 bonus points when you spend $5,000 in the initial 3 months from account opening. There is an annual fee of $95. You can add employee cards at no additional cost.

This credit card only offers 3 points per dollar to a limit of $150,000 a year. So, this is for travel, shipping, internet, cable, phone and qualifying advertising. All other purchases earn an unlimited flat rate of one point per dollar. And there is no introductory APR

Get it here: https://creditcards.chase.com/small-business-credit-cards/ink-business-preferred

Establish business credit fast with our research-backed guide to 12 business credit cards and lines.

The Best Business Credit Card That Doesn’t Require a Personal Guarantee for You

Your absolute best business credit card that doesn’t require a personal guarantee will hinge on your credit history and scores.

Only you can select which features you want and need. So, be sure to do your homework. What is outstanding for you could be catastrophic for other people.

And, as always, be sure to develop credit in the recommended order for the best, quickest benefits.

The post Business Credit Card That Doesn’t Require Personal Guarantee appeared first on Credit Suite.

How to Get Business Credit Cards No Personal Guarantee

Business credit cards, no personal guarantee, are an actual thing. Not aren’t for everyone though. We are going to tell you who can get them, and what to do if you can’t.

Decoding the Secret of Business Credit Cards, No Personal Guarantee Needed

It sounds like an ancient myth doesn’t it? The idea that you can get business credit cards, no personal guarantee necessary? The truth is, unlike the fountain of youth and the lost city of gold, these creatures do exist. They are rare however, and it takes a seasoned business explorer to land one. What does it take to capture the rare beasts that are business credit cards no personal guarantee? What kind of businesses are they meant for? How can you get one? We answer all of these questions and more.

Why Are Business Credit Cards No Personal Guarantee So Rare?

The reason why these cards are so rare is that a lack of personal guarantee is risky to the lender. Typically, a business needs to have $1 million to $4 million in revenue annually to qualify. In addition, there is a minimum annual charging requirement for most of these cards of $250,000 to $1 million. Many also require there to be at least 15 cardholders. If you are a new, smaller business such as one just starting to grow out of your home, you will not qualify.

Check out how our reliable process will help your business get the best business credit cards.

Even if you do meet these qualifications, there are not a ton of options for business credit cards no personal guarantee. One reason for this is that virtually all lenders consider the finances of the business and it’s owners to be tightly interwoven. They aren’t necessarily wrong either. According to the SBA:

8% of start-ups use personal credit cards for financing, versus just 2% using business credit cards.
One-third of businesses fail within two years, and half don’t make it five years.
Personal savings are the top source of start-up capital, used by nearly 6 in 10 companies.

The issue then becomes one of trust and stability, creditworthiness if you will, between the card issuer and the business. The credit card company just wants to get paid. If they can have a personal guarantee, they feel some level of security. How can a business accomplish the level of creditworthiness necessary to get business credit cards, no personal guarantee needed?

Develop a Relationship, or Use One You Already Have

If you are already with a bank that offers a credit card and you have handled your business with them well, you may be able to negotiate for business credit cards, no personal guarantee. This could be true even if you do not meet the standard qualifications typical for this type of card.

It’s not a given, but if your relationship is long and proves extreme creditworthiness with no overdrawn accounts or late payments, you have a chance. The bank just has to be able to see that they can trust you.

Wait Until You Meet the Revenue and Size Banks Want

Those businesses that meet the revenue and size requirements are not guaranteed to get business credit cards no personal guarantee, but they certainly have a better shot than those that do not. Another thing that can help is having several years in business. If you beat the odds and stay in business 5 years or more, your chances are even better.

The thing is, these cards are most often are from specific stores. You can usually use them only at those stores. That means that even if you are able to get business credit cards no personal guarantee, your spending options may be severely limited.

Regardless, these types of cards are few and far between. However, they do exist.

Here are a Few Business Credit Cards, No Personal Guarantee

We list a few of the ones that are out there, what they offer, and what they require for approval below.

Brex Corporate Card

This card is a stand out. It isn’t connected to a specific retailer so it is much more flexible than other business credit cards no personal guarantee. In addition, you can earn rewards! Specifically, you can earn one point per dollar on purchases. You can also get credits and discounts on certain services .

Check out how our reliable process will help your business get the best business credit cards.

One condition is that you have to pay the balance in full each month. It isn’t revolving credit in the traditional sense. You cannot carry a balance.

Even though they do not require a personal guarantee, Brex knows exactly what it is looking for in a cardholder. They want innovative businesses that use modern technology. In addition, they want to see a healthy business specific bank account. It is best if it maintains a balance of $100,000 or more.

The Brex Corporate Card has no annual fee. It also offers other reward levels based on the type of spending, in addition to the 1 point per dollar spent on regular purchases. These include:

7x points on taxis and ridesharing services
4x points on flights, AirBnbs, and hotels when you book with Brex
2x points on software purchases that are recurring

There is an introductory offer of 30,000 bonus points and card fees waived for life after approval. Other perks include credit for ZenDesk and Amazon Web Services. There are discounts on WeWork and Salesforce also.

In addition to a business bank account with $100,000 balance, they also want you to have an EIN.

Bremer Bank Visa Signature Business Company Card

The Bremer Bank Visa Signature Business Company Card is an actual business credit card, no personal guarantee necessary. It also has high income requirements and still prefers to work with medium to large businesses. If you are able to get one, you will enjoy no annual fee and a rewards program.

To qualify, you must have at least $1,000,000 in annual revenue and $350,000 in net annual income for the previous two years.

Shell Small Business Card

The Shell Small Business Card is only good at Shell gas stations, and it offers no rewards. The best thing about it other than it being one of the few business credit cards, no personal guarantee required, is that it can be a nice tool for employees on the road a lot. It offers options such as purchase limits and specific station limitations. There is no annual fee, but cardholders have to be associated with a government entity, nonprofit, or earn at least $1 million annually for the past 3 years.

Sam’s Club Business Mastercard

Surprisingly, the Sam’s Club Business Mastercard is one of the more flexible options for business credit cards no personal guarantee. You are not limited to using it only at Sam’s Club. In fact, you can use it anywhere they accept Mastercard. It also offers great rewards on gas, dining, and travel.

There is no annual fee, but you do have to have a Sam’s Club membership. Currently you get a $20 statement credit if you spend $50 or more at Sam’s Club the same day you open the card. Rewards include 5% cash back on gas up to $6,000 in a year. After that, you get 1%. There is also a 3% cash back on dining and travel rewards, and 1% on all other purchases.

To get this card, the business must make $5 million or more per year. It also must be in business for at least 2 years and have more than 10 employees for there to be no personal guarantee requirement.

Office Depot OfficeMax Business Credit Account

Similar to the Shell card mentioned above, the Office Depot OfficeMax Business Credit Account is not known for its flexibility. It is only good at Office Depot stores, officedepot.com, and OfficeMax. They do not offer rewards, but there is an introductory bonus. If you spend at least $150 in the first 60 days after opening the account you get a $50 statement credit.

To qualify for this card, your business must be at least three years old with over $5 million in sales annually.

A Personal Guarantee Does Not Mean a Hit on Your Personal Credit

It is important to remember that just because a credit card requires a personal guarantee, it doesn’t necessarily affect your personal credit. While strong business credit may not get you out of a personal guarantee, it can help protect your personal credit report.

Many cards will only do a soft pull on your personal credit, and then they will report your payment activity to your business credit. For this to happen however, you have to have established business credit. That doesn’t happen automatically.

What if You Do not Qualify for Business Credit Cards with No Personal Guarantee?

The truth is, if you are a small business, it is very unlikely you are going to qualify for small business credit cards no personal guarantee. This means that you are going to have some personal liability for your business debt. There are ways to protect yourself however, both when it comes to liability for business debts and personal credit.

For example, if you formally incorporate as a corporation, S-corp, or LLC, you will significantly increase your liability protection. As luck would have it, this is also something that you need to do to begin to establish business credit separate from your personal credit.

Another thing you need to do to establish business credit is get and EIN and set up a dedicated business bank account. Since most business credit cards like to see these things anyway, it’s a good idea to go ahead and get the ball rolling.

Other Steps to Building Separate Business Credit

In addition to formally incorporating, getting and EIN, and having a separate business bank account, there are a few more things you need to do to separate your business from yourself and begin to build credit for your business separate from your personal credit.

For example, your business needs contact information that is separate from your own. That means a business phone number and business address that are listed in the business directories. You also need a dedicated business email address, and it needs to have the same URL as your website. It can’t be from a free service like Yahoo or Gmail.

Speaking of a website, you definitely need one. These days, if you do not have a website you basically do not exist. However, it can’t be just thrown together. You need to have it professionally designed. Also, pay for hosting. Free hosting services look unprofessional.

Check out how our reliable process will help your business get the best business credit cards.

Then, head over to the Dun & Bradstreet website and get yourself a D-U-N-S number. You have to have a D-U-N-S number to have a credit file with Dun & Bradstreet. Since they are the largest and most commonly used business credit reporting agency, you definitely need this number.

How Do You Get Accounts to Report to Your Business Credit?

Okay, so here is the secret that few know. It can seem virtually impossible to get credit accounts that will report to the business credit reporting agencies because, you have to have credit to get credit. However, if you set up your business correctly, like noted above, you can open tradelines with vendors in the vendor credit tier. These are starter vendors that will give you net terms on invoices without checking either credit report. Then, they will report your payments. If you apply with your business information, like your business phone number, address, and EIN instead of SSN, then they will be reporting to your business credit report.

When you get enough of these types of accounts reporting, you will be able to apply for cards in the retail credit tier. These are cards for stores Best Buy and Office Depot. Then, after enough of those are reporting, you will be able to apply for cards in the fleet credit tier. This includes cars like Fuelman and WEX. Finally, after you have enough accounts reporting positive payment history to your business credit report, you will have strong enough business credit to apply for card in the cash credit tier.

This are high limit, lower interest, awesome rewards cards that are not limited to specific retailers or types of expenses. While they may still require a personal guarantee, if you follow the steps outlined, they will not affect your personal credit.

Business Credit Cards, No Personal Guarantee: They Do Exist, but They are Few and Far Between

Business credit cards, no personal guarantee required, do exist. However, they are rare, and they are not easy to get. Realistically, it isn’t feasible for a small business to make finding these cards a goal. A more productive goal is to work to build strong business credit and to run your business on the merits of its own credit report.

The post How to Get Business Credit Cards No Personal Guarantee appeared first on Credit Suite.