- A personal guarantee (PG) is an agreement between you and the credit card provider that you will pay for any debt that the business can’t cover using your personal assets.
- Most business credit cards require a personal guarantee upon opening an account.
- However, there are several business credit cards that don’t require a personal guarantee.
- Learn what a “no PG” business credit card is, how to get business credit cards without a personal guarantee, the perks offered, and the best credit cards for business without a personal guarantee.
What Is a “No PG” Business Credit Card?
A no PG business credit card is a business credit card that doesn’t require the business owner to put down a personal guarantee. A personal guarantee is an agreement between the credit card issuer and the cardholder that the cardholder will have personal liability for any debts placed on the credit card that the business can’t pay back.
For example, if the business goes bankrupt, the cardholder would be held personally responsible for paying back the debt. That means as a business owner who uses a business credit card, you could be required to use your personal savings or other personal assets to repay credit card debts that your business can’t afford. This can happen even if you maintain a healthy separation between business and personal expenses.
However, there are a few business credit cards that don’t require you to have a personal guarantee. While it may sound tempting to reduce your personal liability, there are usually trade-offs to not putting down a personal guarantee and they can be difficult to qualify for.
100+ Business Credit Cards in One Click
Business credit cards can help you when your business needs access to cash right away. Browse your top business credit card options and apply in minutes.
Do No Personal Guarantee Credit Cards Really Exist?
Yes. They are difficult to find, but cards that don’t require a personal guarantee do exist. With these cards, you don’t have to agree to pay back debt for your business from your personal savings. However, you may have to make other concessions, like having to pay off your balance in full each month — which means it’s a charge card rather than a credit card. And it is usually more difficult to qualify for these cards than other business credit cards because they require either high annual sales or a high amount in savings.
If you’re most concerned about not having a personal guarantee on a credit card, though, you can find one that you may qualify for.
Best No PG Business Credit Cards
We gathered options from credit card companies to find the best business credit cards that require no personal guarantee available on the market today. Take a look to see if you qualify.
Brex Corporate Card
The Brex Corporate Card offers high rewards rates and targets startup clients. You won’t need to provide a personal guarantee with this card. However, there are high eligibility requirements, meaning you’ll have to meet one or more of the following criteria:
- Your company received an equity investment of any amount (accelerator, angel, or VC) or plan to soon
- You have more than $1 million in annual revenue
- You have more than 50 employees
- Your tech startup is on a path to meeting the criteria above and are referred by an existing customer or partner
The Ramp Card is easier to get than many other no PG cards since you don’t need investors, for example, but you do need to have some cash on hand ($75,000, to be exact). It’s a corporate Visa card that offers unlimited cash back on any purchase. You won’t pay any fees like annual fee or foreign transaction fee to use this card. And you can access unlimited employee cards, both digital and physical. Also, you can use this card to manage employee expenses.
Sam’s Club Business Mastercard
The Sam’s Club Business Mastercard could work well for business owners that frequent the wholesale club. You may not need a personal guarantee with this card if your business:
- Has more than $5 million in annual sales or revenues
- Or is more than two years old
- Or has more than 10 employees
- Or is an LLC or corporation
Stripe Corporate Card
The Stripe Corporate Card is not yet offered at the time of writing, but you can sign up to be notified when it’s launched. It will offer cash back on every purchase and has credit limits that expand as your business does. You won’t pay fees to use this card, either, and can access perks through its partnerships.
SVB Innovators Card
The SVB Innovators Card is another startup-focused credit card offered by Silicon Valley Bank. It offers unlimited cash back rewards on every purchase. There’s no annual fee and you won’t pay interest because you have to pay it off every billing cycle since it’s a charge card. You can manage employee cards and employee spend, but you need to have (or open) a Silicon Valley Bank account before you can apply.
Are No PG Cards Worth it for Small Business Owners?
It depends on your priorities. If you aren’t overly concerned with having access to a revolving credit line, it might make sense to apply for a business credit card with no personal guarantee required. All of the no PG cards listed below have rewards programs that offer perks like cash back or points you can redeem for statement credits or other benefits. You also may not need to pay an annual fee. You usually need high annual revenue or a lot of cash on hand to qualify, however.
On the other hand, missing out on valuable travel or cash back rewards to help even out unstable business finances might be worth taking on a personal guarantee.
Who Can Get a Business Credit Card With No Personal Guarantee?
Business credit cards without personal guarantee requirements are typically reserved for well-established businesses with strong credit histories and financial stability. If the business fails to pay for its credit debt, you won’t be on the line to pay personally. Here are certain circumstances and criteria where a business might qualify for a business credit card without a personal guarantee:
- Being a large corporation: Large, well-known corporations with substantial assets and established credit profiles may be eligible for business credit cards without personal guarantees. It can be harder to get a small business card with no personal guarantee.
- Being a high-revenue business: Businesses with high annual revenues and proven profitability may have a better chance of obtaining a business credit card without a personal guarantee.
- Having strong business and consumer credit: If your business has built a strong credit history and demonstrated consistent, responsible credit behavior, some financial institutions might offer a business credit card without requiring a personal guarantee.
- Being a publicly traded company: Publicly traded companies may have an easier time qualifying for business credit cards without personal guarantees since they are subject to strict financial reporting requirements.
- Being a franchise or established chain: Well-established franchises or businesses with multiple locations might have an easier time accessing business credit cards without personal guarantees due to their proven track record.
- Being a professional firm: Certain professional service firms, such as law firms or medical practices, might have access to business credit cards without personal guarantees based on their industry reputation and stable client base.
- Being a tech startup or high-growth company: Some high-growth startups in technology or innovation sectors might be considered for business credit cards without personal guarantees if they can demonstrate significant potential and strong investor backing.
It’s important to note that even if your business meets some of these criteria, you may still not be able to get business credit cards without a personal guarantee. These cards also might have different terms, fees, and interest rates than traditional business credit cards.
If your business doesn’t yet meet these requirements, you can build business credit over time with Nav. Responsible use of credit, on-time payments, and a demonstrated ability to manage debt can all contribute to improving your business’s creditworthiness and increasing your chances of accessing favorable credit terms in the future.
No Personal Guarantee Business Credit Cards vs. Traditional Business Credit Cards
No PG business credit cards and traditional business credit cards differ primarily in the level of personal liability and the requirements for qualification. Here’s a breakdown of the key differences between these two types of business credit cards:
No personal guarantee business credit cards
- Personal guarantee: These credit cards are structured in a way that doesn’t require the business owner to provide a personal guarantee. With a no personal guarantee business credit card, the business owner’s personal assets are generally not at risk in case of business credit card debt default.
- Qualification criteria: Qualifying for a no personal guarantee business credit card is usually more stringent. Businesses typically need to have a well-established credit history, strong financials, and a proven track record of creditworthiness. These cards are often reserved for larger, more established businesses with higher revenues and financial stability.
- Credit limits and terms: No personal guarantee business credit cards may offer higher credit limits and more favorable terms compared to traditional business credit cards. They are often designed for businesses with substantial financial resources and creditworthiness.
- Benefits: These cards may offer enhanced rewards, benefits, and perks due to the higher qualification standards. They can be especially beneficial for businesses seeking to separate business and personal finances completely and minimize personal liability.
- Application process: The application process for no personal guarantee business credit cards might involve more extensive documentation and evaluation of the business’s financial health.
Traditional business credit cards:
- Personal guarantee: Most traditional business credit cards require a personal guarantee from the business owner. This means that if the business defaults on the credit card debt, the business owner is personally responsible for repaying the debt, and their personal assets could be at risk. The amount you’re responsible for depends on the specific liability clause — which can be limited or unlimited liability.
- Qualification criteria: Traditional business credit cards might have slightly more lenient qualification criteria compared to no personal guarantee cards. They can be accessible to a wider range of businesses, including smaller or newer ventures.
- Credit limits and terms: Traditional business credit cards may have lower credit limits and slightly less favorable terms compared to no personal guarantee business credit cards. However, they can still provide a convenient source of financing for various business expenses.
- Benefits: These cards often come with standard rewards, benefits, and features typical of credit cards, such as cashback, travel rewards, and expense tracking tools.
- Application process: The application process for traditional business credit cards might be more streamlined and require less documentation compared to no personal guarantee business credit cards.
No personal guarantee business credit cards can offer reduced personal liability and potentially higher credit limits. However, they are typically available to businesses with established creditworthiness and financial stability. Traditional business credit cards are more accessible and suitable for a broader range of businesses but come with the requirement of a personal guarantee and potentially more modest credit limits. The choice between these two types of cards depends on your business’s financial situation, credit history, and the level of personal liability you are comfortable with.
How to Qualify for a No PG Card
Eligibility on most no PG business credit cards depends on having high annual revenue or a significant amount of cash on hand. And sole proprietors typically don’t qualify — you need to be a registered business. These are typically corporate credit cards with larger spending limits than other small business credit cards.
No PG card providers will also look at your personal finances — specifically your personal credit score and credit history — by performing a credit check with personal credit bureaus when you apply. Since lenders are less willing to give card offers for no PG cards than other types of cards because of the higher risk, it will likely be difficult to qualify with bad credit.
It’s also a good idea to establish business credit before applying for a no PG card. See Nav’s guide on how to establish business credit for more.
Can Startups Get a No Personal Guarantee Business Credit Card?
It’s generally more challenging for entrepreneurs in startups to qualify for a no personal guarantee business credit card compared to more established businesses. Business credit card issuers that offer cards with no personal guarantee are typically extended to businesses with a strong credit history, stable financials, and a proven track record of creditworthiness. Startups, by nature, may not yet have built up the financial history and stability required to meet these criteria.
However, that doesn’t mean startups are entirely excluded from the possibility of getting these cards. A few factors that could influence a startup’s ability to secure a no personal guarantee business credit card are:
- Strong personal credit
- Investor backing
- Revenues and financial projections
- Business plan
- Industry experience
It’s important to note that even if a startup does manage to secure a no personal guarantee business credit card, the credit limit might be lower, and the terms may not be as favorable as for more established businesses. Startups might also explore other financing options, such as secured credit cards, traditional business credit cards with personal guarantees, small business loans, lines of credit, or alternative financing methods to meet their financial needs.
Do These Types of Business Credit Cards Have Perks?
Most no PG cards offer cash back rewards or points, along with other benefits like no annual fee. The categories depend on the rewards card, but most offer rewards on either business expenses like office supplies, travel, or rideshare, or they have a flat rewards rate across all categories.
Many of these cards also integrate with popular accounting software like QuickBooks or FreshBooks. Some also offer discounts through their partnerships for anyone with a card account.
You won’t be able to access an intro APR bonus — but it’s because there’s no interest charged. These cards usually operate as charge cards, meaning you have to pay them back at the end of your billing cycle and won’t pay interest.
Steps to Getting a Business Credit Card Without a Personal Guarantee
- Decide whether a no PG card is right for you. If you are concerned about personal liability and prefer a card that doesn’t require a personal guarantee, it might be right for you to open a no PG card.
- Find the right card. Look through the options below to see which one would be the right fit for you.
- Review the requirements. See if your qualifications line up with the credit score requirements since the card provider will perform a personal credit check. Check your credit reports to make sure yours are accurate.
- Apply. You typically need business details like your employee identification number (EIN) and business bank account statements, along with personal details for all owners of the business. These applications are usually digital, so you can apply online.
Access better funding options with a solution you can’t get anywhere else
Improve your business credit history through tradeline reporting, know your borrowing power from your credit details, and access the best funding – only at Nav.
No PG business credit cards are best for established and registered businesses with high annual revenue or high savings amounts. They can offer high credit limits to businesses that qualify, as well as great rewards programs. However, for new businesses or small businesses with smaller revenues, it would be difficult to qualify for a no PG card. Use Nav to find the right small business credit cards or small business loans to increase your cash flow.