By opening a business credit card, you will be able to begin the process of building and establishing credit for your business completely separate from your credit.
In general, you will find any application that is meant for business credit cards to require a valid EIN. If your business doesn’t have an EIN, you can use your Social Security Number (SSN) or a personal guarantee.
It can be difficult to find a card marketed for businesses that will not require you to either provide a personal guarantee or an SSN. These are typically only offered to some of the bigger small businesses.
If you do happen to use an EIN for your application, you need to give your SSN for a lot of the cards. Because of this, you should have your SSN ready and waiting. The lenders you are getting the card(s) from will want to minimize their risk. They are well aware that newer businesses have a high chance of failing and they know that these owners typically have more assets than the business itself. Therefore, they know that they can access those assets if the credit isn’t paid off in time.
Business Cards That Don’t Have a Personal Guarantee Requirement
A single card that you could potentially apply for that wouldn’t require a personal guarantee is the Brex Corporate Card for Startups. This is a card that is supplied by Emigrant Bank. This specific card is meant for businesses in the tech, e-commerce, or life sciences field.
This card does not have a yearly fee attached to it. It also doesn’t require any sort of personal guarantee and it happens to payout reward bonuses. This card is specially meant for companies that have over $100,000 in yearly revenue or that have over $50,000 in investor backing.
This is a charge card which means your balance needs to be paid every single month in its entirety. There is no APR attached to this card. The credit that you are given is entirely subject to the cash that you’ve been able to raise and any equity you have in the company. They account for your business’ spending patterns as well. Brex has noted that they typically offer limits that are 10 to 20 times higher than the standard business cards in the marketplace.
Also, you aren’t able to apply for it if you are a sole proprietor or if you are someone apart of an unregistered business. You also cannot be apart of a business that is registered for operation out of the United States.
You are also not allowed to apply if you are involved in any sort of unregulated business activity like the sale of cannabis or related to multi-level marketing. This list was updated recently to include these business restrictions.
Another option that you have that doesn’t have the same personal guarantee attached is the Visa Signature Business Company Card from Bremer’s Bank. This particular card is designed and targeted for the medium to larger businesses. This card doesn’t have a personal guarantee attached and it has a good program to earn rewards. You will need to request the information directly from the lender.
While there may be more cards in the future that don’t require a personal guarantee or an SSN, there aren’t many available right now. For those who are entrepreneurs looking to get a card that meets these requirements, you want the card issues to start paying attention because there aren’t many available.