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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.

Are Credit Cards for Small Business on the Rise?

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Business Credit offer

Many business owners across the country have experienced the cold shoulder from their banks and seen their credit lines reduced as a result of rising losses, the credit crisis, and economic uncertainty.  Are credit cards for small business on the rise or decline?

 

While major credit card issuers like Advanta have left the business earlier this year it’s refreshing to see that banks like J.P. Morgan Chase card services announced today that it plans to launch four more credit cards specifically targeted at small-business owners! Among them will be a credit card that requires the cardholder to pay their balance in full each month similiar to Amex’s card.

 

Richard Quigley, president of Chase Business Cards said “It’s really going to be small businesses that are going to help pull the U.S. out of the recession.” Now we have all known this from the very beginning of this financial mess but it’s about time that these national banks realize it and do something about it.

 

Even though this is good news for small business owners there are some that see this as a strategy that banks are pushing simply because business credit cards aren’t covered under the new regulations that restrict issuers from raising rates and fees on consumer credit cards. Whatever the reason is I believe that the more options small business owners have when it comes to credit cards the better. Hopefully Chase will roll out some true business credit cards but I do like that they are positioning themselves to compete with American Express.

 

Competition is a good thing and when it comes to small business credit cards the winner is the small business owner! For example, Chase’s Ink Bold card—the first charge card offered by a Visa or MasterCard issuer—is aimed at business owners who want to avoid paying interest charges. It comes with a variable credit line that automatically adjusts to the business owner’s spending patterns. Annual fees are $95, but the first year’s fee is waived.

 

Here are some other aspects to Chase’s new small business credit cards compared to Amex.

 

Chase’s Four New Small Business Credit Cards – Ink Bold, Ink, Ink Plus and Ink Cash

*They are accepted at twice as many locations worldwide as American Express

 

* InkSM Bold — Chase’s first pay-in-full  charge card with no interest
      charges 

– Ink Bold has no annual fee for the  first year and $95 thereafter

 

*InkSM — Developed for small business  owners seeking business-sized
      credit limits, flexible payment options  and online expense management
      tools with the ability to earn rewards  from business purchases with no
      limit on how many points may be earned  and the points do not expire.

-Ink has no annual fee.

 

*InkSM Plus — The solution for  small business owners seeking
      business-sized credit limits, flexible  payment options, online expense
      management tools and the ability to  earn rewards from business purchases
      including extra travel benefits  with no limit on how many points may be
      earned and the points do not  expire. Rewards points also are worth 25
      percent more when redeemed  for air travel through Ultimate RewardsSM and
      cardmembers  can earn an annual spend bonus of up to 25,000 points.

-Ink Plus has no  annual fee for the first year and $60 thereafter.

 

*InkSM Cash — Designed for small  business owners seeking unlimited cash
      back and accelerated earnings  on everyday business purchases: dining,
      fuel, home improvement and  office supplies. Ink Cash provides
      business-sized credit limits,  flexible payment options and online
      expense management tools.

-Ink Cash  has no annual fee.

 

Ouch! I’m sure Amex doesn’t like to see this!

 

If you like to stay informed and here about the latest news regarding business credit be sure to subscribe to my blog. 

 

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

 

By the way, what would you like to see more of on this blog? Any questions? Let me know 🙂

 

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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