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.
Click to continue …