You may be wondering if it’s still possible to obtain business credit cards without a personal guarantee. Well, it is still possible. But you are going to have to do some work first.
For starters you’ll need to establish business credit that is separate from your personal credit. To do this, you’ll need to create business credit profiles with Dun and Bradstreet (see How to Get a DUNS Number), Experian Business and Equifax Small Business.
Then you’ll need to establish business credit with trade vendors (NET 30 Accounts). The purpose of this is to get your business some credit quickly so that the three business credit bureaus will start to rank you. Trade vendors usually offer quick approvals if you are just starting out.
>>>We have a guide that shows you how to do exactly this. Click here to view it.<<<
Now that your business has established some business credit. You can apply for business credit cards without having to give a personal guarantee. Keep in mind though that if you are not willing to “give” a personal guarantee, you’ll need to “give” something else. This may be providing the lender some other form of collateral like Accounts Receivable, Equipment or another asset. It’s possible to receive unsecured lines of credit, but in the present lending environment, your company needs to be well qualified (think of the basic rules of lending: business credit rating, business revenue, business plan, business assets/cash.
Of course, there are some lenders that will offer you business credit cards if you are a brand-new business without any assets or qualifications, but these are more along the lines of store cards (like Home Depot, Lowes, Office Depot, Staples, etc) and Business Gas Cards. Can you obtain a business credit card that you could use anywhere, like a Visa or Mastercard? Yes. You can, but remember, you need to get your company qualified first. And, you may want to consider local lenders that have smaller programs catered towards the community businesses in their area.
If you need additional help getting business credit cards without a personal guarantee, please give us a call at (888) 218-6354 for a free business credit consultation. We will work with you 1on1, with local lenders in your area to meet your business needs. (We have many references are available).