Looking for business credit cards, no personal guarantee? They can be found, but it can be difficult. A business credit card is a must for any business, new or old - it shows that you do, indeed, mean business. But can you really stay completely separated from your company? If you're looking for business credit cards, no personal guarantee involved, you might run into some problems with your lenders.
A personal guarantee, to a lender, means including your Social Security Number with your credit card account. That means that your business account will still have a way of contacting you personally, in case your business isn't paying its bills. It means that the credit card company can still get their money; they'll just have to come to you. That's why few credit card companies are willing to give out business credit cards, no personal guarantee. They want to make sure they have an option, should your business go down.
There are advantages to getting business credit cards, no personal guarantee attached. Some of these advantages are blatantly obvious: if your business isn't tied to your finances, you won't have to pay for your company's blunders out-of-pocket. As well as keeping your personal finances safe, this option can allow you to develop a line of business credit, separate from your own personal finances. That means that if you've got bad credit, you might want to work on your business's credit history separately from your own. That will have to mean establishing your business as an entirely different legal entity, however, which will entail establishing your company as a corporation and severing a lot of ties between you and your business. It will also involve allowing a lot more people to share ownership of your business with you, which may or may not be to your advantage. It depends how much control you want to have over your business, ultimately.
Business credits cards can be found with no personal guarantee, but since it offers a much more serious risk to the creditors, they're a lot harder to find. And while you may be able to find an account that doesn't require your Social Security Number, you might not want to bother. It really doesn't matter all that much in most cases.
If you're operating a small business, you're probably the sole proprietor or owner. Even if you're not, there probably aren't a whole lot of people involved. If you're the only owner - or one of only several - you'll probably be held responsible for any shortcomings of your business, even if you do have a business card with no personal guarantee. Your business credit card can be very useful for establishing a line of corporate credit and building a good reputation, but it doesn't necessarily have to be severed from you to establish that. You can still establish your business as a trustworthy one, even if your credit card company knows who's doing the shopping.
Also, there are few creditors who are willing to give you an account without a fall-back. If you're going to a credit card company and asking for a card, you're essentially asking for them to pay for everything you want, with a promise to pay them back. Maybe you have a perfectly good reason to be asking to be left out of it, but your credit card company is going to get suspicious if you don't want your finances to be involved in any way. It starts to look like you're planning on refusing to pay them. While your personal guarantee doesn't make a whole lot of difference to you in the end, it makes a big difference to your credit card company, and they'll be much more likely to give you a deal - and a good interest rate - if you're willing to give them your information.
Corporate Credit Concepts specializes in "KEY PHRASE". For more information about "KEY PHRASE" and how it might benefit your business, please CLICK HERE for a free phone consultation.