A business credit card can come in handy if you need to make purchases for your business. And some cards can help you earn money-saving rewards in the process.
There’s just one catch. Most business credit cards require a personal guarantee as a condition for opening an account.
Credit card issuers can use personal guarantees as a way to manage risk in case you can’t pay and end up defaulting. Getting a business credit card with no personal guarantee is doable, though your card options may be limited.
Can you get a business credit with no personal guarantee?
A personal guarantee makes you personally liable for any charges your business makes to the card. If you fall behind on payments and default, the credit card company can attempt to collect what’s owed from you, as well as the business. Personal guarantees can be limited or unlimited, in terms of how far liability can extend.
No personal guarantee business credit cards do exist, though only a handful of card issuers offer them. That’s because credit card companies want to see that you have some skin in the game, so to speak, when extending credit. A personal guarantee acts as an insurance policy of sorts for the card issuer.
Qualifying for business credit lines with no personal guarantee
Business credit cards and business lines of credit without personal guarantee requirements are rare, as most lenders want some type of assurance that a loan or line of credit will be repaid. If you’re able to get business credit without personal guarantee guidelines you may still be expected to offer collateral or sign a Uniform Commercial Code (UCC) lien.
With no personal guarantee business credit cards, there may be other requirements you need to meet. For example, the card issuer may only offer business credit cards with no personal guarantee to businesses that have a minimum amount of revenue each year. Or you may need to meet annual spending requirements to keep your account year-to-year. Aside from those factors, your time in business, number of employees and the type of business you operate may also come under scrutiny.
Best no personal guarantee business credit cards
Finding business credit cards without personal guarantee requirements typically means looking beyond the usual business credit options. This no personal guarantee business credit cards list highlights some of the top offerings currently available.
Brex Corporate Card for Startups
Good for: Tech startup owners interested in earning rewards
The Brex Corporate Card for Startups is designed for tech startups that need access to higher credit limits with no personal guarantee required. It’s a business Mastercard no-personal-guarantee option that offers credit limits 10x to 20x higher than traditional business credit cards, with no interest and no fees.
As a cardmember, you can earn rewards on eligible purchases for your business. That includes 7x points on ride-sharing, 4x points on flights and hotels booked through Brex Travel, 3x points on restaurants and dining. One thing to note is that this card does require payment in full each month. And it’s not available to sole proprietors or unincorporated partnerships.
Shell Small Business Card
Good for: Small business owners who want to earn rewards on gas purchases at Shell
The Shell Small Business Card offers rebates of up to six cents per gallon on Shell gas purchases, along with discounts at Jiffy Lube. It’s one of the better no PG business credit cards if your business spends heavily on gas and you prefer Shell to other fuel brands.
While you won’t need a personal guarantee, there are minimum income requirements to meet. You’ll need at least $1 million in annual revenue to qualify, which may be out of reach if you own a small business.
Sam’s Club Business Mastercard
Good for: Business owners interested in earning cash back with no annual fee
The Sam’s Club Business Mastercard is worth a look if you’d like to earn cash rewards on purchases. This card offers 5 percent cash back on eligible gas purchases (up to $6,000 per year, then 1 percent), 3 percent on dining and travel and 1 percent on all other purchases, with no annual fee. You do need to become a Sam’s Club member to apply for this card but you can use this card to earn rewards virtually anywhere.
While you can get this business credit card no personal guarantee needed, you may still be asked to provide one. Specifically, the card application encourages offering a personal guarantee if you:
- Operate as a partnership or sole proprietorship
- Have less than $5 million in annual revenue
- Employee fewer than 10 individuals
- Own a business that’s less than two years old
If you can check off any of those boxes, then you may need to be prepared to offer a personal guarantee.
OfficeDepot OfficeMax Business Credit Card
Good for: Small business owners who regularly spend on office supplies
The OfficeDepot OfficeMax Business Credit Card is designed for business owners who regularly spend at OfficeDepot and OfficeMax locations. This card has no personal guarantee requirements if you have more than $5 million in annual revenue and you’ve been in business for at least three years.
This card doesn’t offer a rewards program. But if you’re looking for an LLC credit card with no personal guarantee to purchase office supplies without an annual fee, it could be a good fit.
Are business credit cards with no personal guarantee worth it?
When comparing business credit cards, no personal guarantee options may be attractive if you don’t want to make yourself personally liable for business debt. While the credit card company may be able to sue your business for unpaid credit card debt, your personal assets would be kept separate.
But you could be making a trade-off in terms of where you can use the card to make purchases or whether you’re able to earn rewards on what you spend. Before committing to a business credit card without a personal guarantee, first consider whether it makes sense for your spending habits.