Business Credit Cards Without Personal Guarantees
Are you surprised that in your search for business credit cards, everywhere you look a personal guarantee is required?
Why is it that the majority of lenders, banks and credit card issuers require a personal guarantor?
Bottom line it’s all about minimizing risk.
Let’s look at it from a bank’s perspective. A personal guarantor (also referred to as a co-signor) provides a level of security that in case the business fails to repay; the guarantor (business owner or credit partner) will guarantee repayment. In a way, a personal guarantor is like collateral because the guarantor is the pledged security as opposed to hard assets such as real estate, stocks, bonds, equipment, etc.
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