http://www.businesscreditblogger.com/2015/02/19/get-business-credit-cards-without-personal-guarantees/Business Credit Cards Without Personal Guarantees: Step by Step System for Business Creditworthiness
A personal guarantor provides a level of security that in case the business fails to repay; the guarantor will guarantee repayment. In a way, a personal guarantor is like collateral because the guarantor is the pledged security as opposed to hard assets such as real estate, stocks, bonds, equipment, etc.
Now since a personal guarantee is unsecured, it’s not tied to any form of collateral. So in the event the business defaults the bank will demand repayment from the guarantor and if the guarantor fails to make good on the guarantee, the bank may go after the guarantor’s personal assets.
Yes. It is possible, but it’s not easy.
The truth is getting no personal guarantee business credit cards or getting a PG released from existing business credit cards is based on convincing the bank that the removal of a personal guarantee does not increase the risk of nonpayment.
While some business credit cards require strong revenues to meet its no PG card requirements other card issuers are business credit report based. For example, you don’t have to supply a personal guarantee for the Sam Club® Business MasterCard® if your business has more than $5 million in annual sales. Like I said earlier, it’s all about risk and a business that has strong revenues definitely meets the no PG requirement.
It’s essential to have strong business credit ratings with Dun & Bradstreet, Experian Business and Equifax Small Business. If your company has 10 reporting trade-lines, an open Dun & Bradstreet file, and a minimum $10K high limit reporting from another account under your business name it may qualify for several no PG cards listed in our Business Credit Building System.
Other no PG card requirements with some card issuers are business credit report based. If your company has 10 reporting trade-lines, an open Dun & Bradstreet file, and a minimum $10K high limit reporting from another account under your business name it may qualify for several no PG cards listed in our Business Credit Building System.
While business credit cards with no personal guarantee may be on your wish list, don’t let it be the only source of financing your company has access to. The key is having access to a diversity of credit so your company has the more choices and more options.
For more details on how to get business credit cards without personal guarantees check out the following sites.