For any small business owner looking to separate personal liability from their company’s finances, obtaining a business credit card without a personal guarantee can be valuable. In this article, we’ll look at eight options that offer the convenience and flexibility of credit while protecting the business owner’s personal assets from potential financial setbacks. Let’s begin!
What Is a Personal Guarantee for a Business Credit Card?
When business credit card issuers require a personal guarantee, it means that the business owner is personally responsible for paying back any debts incurred by the card.
This guarantee is often required when a business has not yet established its own creditworthiness, and the issuer wants to ensure that it will be repaid. If you’re just establishing your credit, read about what are business credit cards and how can small businesses use them here.
The personal guarantee ties the business owner’s personal credit reports to the card, so if the business fails to make payments, it can negatively impact their personal credit scores.
Best Business Credit Cards Without a Personal Guarantee
Finding the right business credit card can be tough, especially when a credit card issuer requires a personal guarantee. Here are some of the best small business credit cards without a personal guarantee.
1. Sam’s Club Business Mastercard
Businesses incorporated for at least two years and earning a minimum of $5 million in yearly revenue can apply for this card without a personal guarantee. The card comes with a $0 annual fee and rewards on gas, dining, and other Sam’s club purchases. New accounts can receive a $30 statement credit. The rewards are earned as Sam’s Cash but can only be redeemed at Sam’s Club.
2. Stripe Corporate Card
The Stripe Corporate Card is an invite-only card for businesses in the US, requiring only a Stripe account to apply. There are no fees, and the credit limit grows with your business. The card offers no rewards but instead provides partner benefits from over three dozen partners. The Stripe Corporate Card simplifies expense management, allows custom spend controls, and integrates with finance tracking software.
3. Shell Small Business Card
Shell Fleet Cards offer control, convenience, savings, and security. Users can set limits and get detailed fueling reports with ClearView, access their accounts with online and mobile tools, earn rebates and discounts, and cancel lost or stolen cards in real time. Shell Small Business Card allows carrying a balance with ongoing savings based on the number of gallons purchased, revolving credit, and no card fees.
4. Emburse Spend Card
Emburse Spend is a prepaid business card that offers unlimited 1% cash back on purchases, without personal guarantees, fees, or credit checks. The card can be loaded up to $100,000 and features an expense management system and accounting integration. Emburse Spend is suitable for businesses of all sizes, with the option to issue unlimited cards, and set card limits and expense restrictions. It can be set up in minutes and offers real-time expense reporting, eliminating manual reports.
5. Office Depot OfficeMax Business Credit Card
The Office Depot Business Credit Account is a closed-loop card with no rewards, a $0 annual fee, and a 23.99% variable APR. It offers a $50 welcome bonus for the first $150 spent within 60 days of account opening. To avoid a personal guarantee, organizations must meet specific criteria. Users can link their Office Depot OfficeMax Rewards account but otherwise, there are no significant benefits.
6. Brex Card
Brex Card offers a generous rewards program and welcome bonus with no personal guarantee. The corporate card comes in two varieties, paid daily or paid monthly. The Brex 30 Card sets credit limits based on cash flow, with no business or personal credit check requirement. The card offer rewards and perks, with the Brex Card being preferred by 1 in 4 startups in the US.
7. Charity Charge Nonprofit Business Card
Charity Charge offers a no-guarantee charge card for tax-exempt nonprofits operating for at least two to five years with annual revenue of $100,000 or more. The card offers automatic rebates on various services and goods via Mastercard Easy Savings. It has no annual fee, Mastercard Zero Liability and ID Theft Protection, and dedicated customer support. Charity Charge is a social enterprise aimed at providing financial tools and fundraising resources for nonprofits to thrive.
The Ramp Business Card is a charge card for businesses with excellent credit and at least $75,000 in a business bank account. It offers 1.5% cashback on all purchases, spending controls, and a five-in-one platform for expense management, corporate cards, accounting integrations, bill payments, and real-time reporting. The card features Ramp savings, free employee cards, free bill pay, free accounting automation, and no annual, interest, or foreign transaction fees. Sole proprietors are not eligible, and there are no rewards, welcome bonuses, or travel perks.
What Is Required to Get a Business Credit Card Without Personal Guarantees?
Most business credit cards require several documents to be able to qualify, such as a business license, articles of incorporation, and two years of financial records.
If a personal guarantee is not required, then most businesses should have an acceptable credit history, a current business license, and their most recent income tax returns to qualify for these business credit cards.
However, it’s important to check with the card issuer for specifics on what documentation is needed as requirements may vary.
What Are the Restrictions and Limitations of Cards Without a Personal Guarantee?
Business credit cards without a personal guarantee typically require a strong business credit score and may have lower credit limits than cards that do require a personal guarantee.
Rewards programs and other benefits may also not be as robust as those offered by cards with a personal guarantee. This is often considered one of the top reasons to use a business credit card. So go over the specifics offered by your card before signing up.
Some issuers may also have industry-specific eligibility requirements or require a certain minimum revenue level. There are many different types of credit cards for small businesses in this category. So check the details carefully.
Are You Personally Liable for a Business Credit Card?
Yes, the business owner is personally liable for any debts incurred by the card. This means that if the business is unable to make payments, the card issuer can pursue the business owner’s personal assets to recoup the debt.
However, business credit cards without a personal guarantee limit the business owner’s personal liability and protect their personal assets.
What Is the Best Business Credit Card With No Personal Guarantee?
The best business card with no personal guarantee is often determined by the individual business and its requirements. A great choice for many businesses is a low-interest card, such as a rewards card with no annual fee.
Some business cards provide extra benefits like cashback, discounts at select merchants, or even free travel insurance. Compare offers carefully to find the best fit for your business needs.
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