- 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.
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.
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.
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.
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.
Best No PG Business Credit Cards
We gathered the best business credit cards that require no personal guarantee available on the market today. Take a look to see if you qualify.
Ramp Card
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.
Stripe Corporate Card
The Stripe Corporate Card is still in beta mode 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.
Nav’s Verdict
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. If your business is on the smaller side, you’re better off using Nav to find the right small business credit card or small business loans to increase your cash flow.
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