If you are seeking business credit cards to help you establish your business credit, how will you be able to acquire business credit cards without personal guarantee? These cards are necessary to help you start your company and show lenders that you can make your payments in a timely manner. It can take 2 years before your business credit is built up enough to the point that lenders will offer a loan or credit card to you without asking for collateral or some type of personal guarantee. This is all based on the amount of risk your business brings to the plate. The higher the risk, the harder it will be for you to acquire financing for your business.
What does it mean to acquire business credit cards without personal guarantee? First, you need to know what a personal guarantee is. A personal guarantee is simply a way for lenders to reduce their risk. They are asking you to pay for the credit card in the event that the business is unable to pay for the card. If your credit is bad or you do not have the money to pay for the credit card from your checking account, the lender will not offer you the card. They are seeking clients that can afford to make their monthly payments or can afford to have someone else pay for them if they default. Business credit cards without personal guarantee will only happen when you have finally built up your business credit rating.
Business credit cards without personal guarantee are easier to acquire now than they were about 2 years ago. This is because most lenders see that the small businesses that made it through the recession are going to be around for awhile so they have an easier time offering them money. While the business credit card may not have a large line of credit initially, it will still be enough money to help you get your business up and running or to strengthen your small business cash reserves.
When you are seeking business credit cards without personal guarantee, one of the first things you need to consider is how large of a line of credit you need. Since you aren't allowing the lender to use your personal credit rating to back the card, they may only be able to afford a couple hundred dollars and at the most $1,000 for your initial credit card limit. As you build your business credit by making all of your monthly payments on time and showing lenders that you can be trusted, you will be able to easily acquire business credit cards without personal guarantee.
To help you find out if you qualify for business credit cards without personal guarantee, here are some things that may help:
A simple way to acquire business credit cards without personal guarantee is by contacting the same bank where your business bank account is.
Corporate Credit Concepts specializes in business credit cards without personal guarantee. For more information about business credit cards without personal guarantee and how it might benefit your business, please CLICK HERE for a free phone consultation.