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You and Your Money

SMALL BUSINESS FINANCE:  Obtaining a Business Credit Card without Personal Guarantees

If you are a small business owner, you must be familiar with the difficulty in getting a business credit card without personal guarantee. You may want your business to grow rapidly, but the real fact is that it is really hard to ensure this growth when you neither have any reliable partners to finance you nor do you have any technical skill. With the absence of these basic factors, you cannot imagine asking a financing company for a sum to aid your business growth when you can offer no personal assurance like collateral or a personal credit.


To help small business owners like you who want to build business credit, there are several financing companies such as Chase, Dan & Bradstreet and Discover. These companies will sanction you business credit cards provided you supply a proof to them regarding the viability of your business. Financing companies such as these have a good understanding of what a small business owner goes through when he starts a small business with his small business credit. All you have to do is to make sure that they are convinced that your business is a viable one and on this basis, they will approve that your personal credit is good and that you are reliable enough to get a business credit card
without personal guarantee.

How to Approach?

The first thing that you will need to qualify for an approval from the financing company is a good credit reporting score. This repot has to be taken from the three agencies that report credits, namely: Dunn and Bradstreet, Equifax Business and Experian Business. Next, you will have to look for approval of good credit with no credit reporting score taken into consideration from vendors, suppliers and credit card companies. Ensure that you prove to the business credit bureaus that you have a good payment history. All these will improve you credit score and on the whole make your profile better. This way you can establish that your company is viable.

Start approaching financial companies once you have established a sound credit profile. You should be sure of when and how to do so. You might be asked for business documents like your IDs and business licenses by the lender. The demands vary form lender to lender and are totally discretionary. However, you can be assured that they will not ask you for any such document that will connect you to your personal account. You need to have good knowledge about this. Ensure that you fulfill all the demands of the lender. Building business credit is possible only this way. Otherwise, you have the chances of being turned down.

Sometimes, you might be misinformed by online sites that you need to just have a good credit score in order to get an approval for your business credit card without personal guarantee. Instead, the fact is that your business profile matters too. So ensure that you have high reporting limits as your chances of approval increase as your reporting limits increase as your reporting limits increase.



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