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Small Business Credit with No Personal Guarantee

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Credit for Small Business

Business Credit with No Personal Guarantee

 

Building small business credit has incredible advantages including obtaining cash credit cards with no personal guarantee. Two of the most common questions I’ve been getting lately is…

Are no personal guarantee businesss credit cards still available in the marketplace?

 and…

How do I go about finding who offers no personal guarantee cash credit cards for businesses?

That’s the magical question but before you get some answers you need to know that in order for you to obtain cash credit cards with no personal guarantee you will need to have an established business credit profile with a DNB paydex of 80 or greater plus 7-10 trade lines (vendor credit) reporting credit lines ranging from $2k and greater.

The video below will share with you the three ways to obtain Small Business Credit with No Personal Guarantee credit cards for your business. Don’t be confused with no personal guarantee vendor credit because that’s very easy to obtain. Cash credit is what most if not all business owners are seeking to obtain greater amounts of especially these days.

 

 

If you plan to apply for a business credit card prior to building business credit pay close attention to what information the application requires. It must require your Federal Tax ID, Dun and Bradstreet number, and may require a personal credit check. It’s always a good idea to verify with the credit card issuer how they report your payment history. If the answer is your personal credit file then it’s not a true business credit card.

True business credit cards offer three main benefits:

  1. Payment history is solely reported to the business credit bureaus
  2. No personal guarantee which shields you and your family from liability
  3. Separation of Personal Credit and Business Credit eliminates the co mingling of funds & credit profiles

What type of small business credit are you looking for? 

Looking for no personal guarantee business credit? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free audio seminar ($597 value =>

About the Author

Marco CarbajoMarco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle.  He is a business credit blogger for AllBusiness.com, a subsidiary of Dun and Bradstreet and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in American Express Small Business, Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.

How Business Credit Can Make A Difference

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Credit Card Capacity

Business credit also referred to as corporate credit, is the ability to obtain financing under the name of a corporation or business rather than an individual person. Now I’m happy to tell you how business credit can make a difference in more ways than you can imagine but first you have to realize that the only way you can benefit is by taking action. Start digging your well before you get thirsty! 

 

Don’t put your business in a position where you are desperately seeking funds to survive and/or expand.  You will find that banks and lenders are much more likely to extend credit to a business in large amounts that don’t need the funds when they apply. The best time to build busness credit is when you don’t need the money!

 

The advantages of having established business credit range from simple operational issues, all the way up to allowing your company to withstand scrutiny from a potential client or potential business partner who may gauge how reliable and proficient your company is by how well your business credit profile reads.

 

From an operational standpoint, business credit allows you to do several things such as purchase supplies, pay debts, maintain facilities, hire additional staff, compensate for a downswing or upswing in business without depleting your vital cash assets. If you establish business credit you’ll have the ability and the financial resources available to respond to market demands or growth.

 

Another advantage includes the fact that many lenders and lease providers base their interest rates on what the business credit profile and rating is for your company. Having established credit can lead to incredible savings in interest rates and much more favorable lease and loan terms.

 

So let’s suppose that you need $50,000 for a piece of equipment for your business. Without a strong business credit rating, your bank will use your personal credit only. If you get approved, you’ll have an interest rate of let’s say 18%. With a D&B report, you can lower your rate to maybe 10% and you don’t have to guarantee the loan with your personal assets. So these are just a few of the examples on how business credit can benefit your company

 

Finally, instead of putting your personal credit and assets at risk every time your company requires financing you would now be in a position to secure the financing you need with even more favorable terms and lower interest rates without a personal guarantee. That is a major difference from how you may be running your business today!

 

Some other ways that business credit can make a difference include:

 

  • Business credit cards have much higher limits than personal credit cards.
  • Your corporation has the ability to obtain 10 to 100 times the credit then you can obtain personally
  • Having the cash lines available for unforeseen expenses like expansion, equipment, operations or fulfillment
  • Prevent the risk of damaging your personal credit
  • Prevent the limits that lenders will impose on you for personal credit for you and your family’s needs
  • Reduce your tax burden and improve accounting
  • Last but not least you SAVE MONEY! For example, an individual might pay up to 13% interest on a $100,000 line of credit whereas a business could qualify for an interest rate of 7%. That would save you almost $40,000 in interest alone.

 

How has business credit made a difference for you and your business?

 

CLICK HERE to become a member and discover what a difference business credit can do for you!

 

 

To Your Success!

Marco Carbajo

About the Author

 marco-picture-2009-small-pic2

Marco Carbajo is a business credit specialist, author, speaker, and founder of http://www.startbusinesscredit.com . Want to learn more about how to build business credit and obtain unlimited financing for your business? Claim Marco’s popular FREE business credit seminar ($597 Value), available by simply submitting your email below To Your Success! =>

Credit Cards for Business

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small-business-credit-cardWhile small business credit card usage is on the rise according to the 2009 Small Business Credit Card Survey the majority of all small business owners fail to understand the importance of what’s in the fine print.

 

Statistics even show that over 65% off all small businesses use credit cards on a regular basis; but the problem is less than half of those credit cards are actually in the business name.

 

I hope to provide you with some insight into business credit cards and what you should pay close attention to when applying.

 

First, you should be aware that there are over 500 business credit cards available in the marketplace but less than 70 report your payment history to the business credit bureaus.

 

In addition, there are less than 40 business credit cards that will extend cash credit cards to your business without a personal guarantee.

 

Here are my ‘Top 4 Types of Business Credit Card Applications’ you should know about

 

The Business Credit Card Wannabe

 

This business credit card is by far the worst and in my opinion very misleading. It doesn’t matter how much fluff or creative sales copy is used by these particular companies what matters is what’ in the fine print! In a nutshell this business credit card application is nothing more than a glorified personal credit card.

 

How to identify?

 

The application requires your personal information, social security number, and business name only.  No Tax ID# or Duns# is required.

 

Disadvantages

 

Personally liable for all debt

All charges and debts are reported on personal credit files

Impacts personal debt to credit limit ratios

 

The Business Credit Card Poser

 

This business credit card is doing its best to be a true business credit card but it doesn’t quite make the grade. In a nutshell this card still requires a personal guarantee but what makes it appealing is the payment history and credit card balance are solely reported to the businesses credit reports not personal.

 

How to identify?

 

The application requires your business information, Fed Tax ID#, Duns#, personal information and social security number.

 

Disadvantages

 

Personally liable for all debt if the business defaults

 

The True Business Credit Card

 

This is the real deal business credit card and what truly represents what every business owner should have. A card that is tied to the business and completely separate from personal credit. This card is the best of both worlds! The payment history and balances report solely on the business credit reports and there is no personal guarantee keeping the liability strictly tied to the business.

 

How to identify?

 

The application requires your business information, Fed Tax ID#, Duns#, personal information but no personal social security number. (No personal guarantee)

 

Disadvantages

 

NONE

 

*Keep in mind there are also business credit cards that allow you to apply with business information only and no personal credit check. However, if you’re business credit scores and files are not strong enough they may require a personal guarantee for approval. I call this the ‘Two Faced Business Credit Card’.

Looking to rebuild your business credit? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free business credit building audio seminar ($497 value) =>


To Your Success in Business and in Life!

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About the Author

Marco Carbajo

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the SBA.gov Community, Business.com, About.com and All Business.com. His articles and blog; Business Credit Blogger.com, have been featured in ‘Fox Small Business’,’American Express Small Business’, ‘Business Week’, ‘The Washington Post’, ‘The New York Times’, ‘The San Francisco Tribune’,‘Alltop’, and ‘Entrepreneur Connect’.

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