Business credit cards with no personal guarantee: Is that really a possibility?

If you own a small business that’s still in its initial phase, with no solid financial backing, you may struggle to find a business credit card with no personal guarantee.

Before we move on to discuss a solution to this problem, we must first understand what a personal guarantee is and why is it usually required.

Personal guarantee

Personal guarantee allows the institution issuing the credit card to recover the unpaid amount from a user’s personal assets. This means that if you, as a business owner, go bankrupt or are unable to pay the outstanding amount, you are legally bound to pay the credit card company anyways, either from your personal savings or, by selling off your assets that do not fall within the boundaries of your business.

The reason why a personal guarantee is required, is that if the business shuts down, the issuing organization would lose all the money it has lent to the card holder and may end up in a loss. The card holder can use this situation to deceive the company and get away without paying. Therefore, the financial institutions rarely issue business credit cards with no personal guarantee.

Who can get guarantee-free business credit cards?

Usually, corporate credit cards are issued once your business has a particular standing and good credit ranking in the market.

Corporate credit cards is the name given to business credit cards with no personal guarantee. The baseline for qualifying to attain a guarantee-free credit card is that your business is established enough to generate a substantial revenue and hire multiple employees so the chances of it vanishing overnight are significantly reduced.

One of the reasons these large corporations receive additional favor from credit card companies is that they are their valued clients. The larger the business, the greater its credit limit, the more it borrows – and consequently – higher the amount of interest it pays. This ultimately results in more earning for the credit card companies.

Maybe, it is for this very reason that corporate credit card holders also receive various benefits depending on the number of purchases they make using their credit cards. Examples include loyalty points, cash-back rebates and air travel miles on exceeding a certain dollar amount.

If you think your business can meet the requirements for a corporate credit card and you are looking for options, here is the list of few providers who issue business credit cards with no personal guarantee to those who meet their criteria:


Brex is a new credit card company that came into being in 2017. Headquartered in San Francisco, California, it is a popular choice amongst the ‘establishing businesses’ of America. It offers seven times more benefits than any other credit card company but also has enhanced security features that significantly reduce the chances of any disruption or errors in functioning.

The COVID-19 induced lockdown and increased resistance to go outdoors was a challenge as well as an opportunity for most businesses. It was during this time period that Brex credit cards made their mark on customers by offering rewards on the purchase of collaboration tools that aid social distancing and allow them to remain digitally connected.

However, the eligibility criteria to qualify for a Brex business credit card with no personal guarantee is quite demanding. The minimum bank balance required in your company account is $100,000 unless you are a professionally-funded business, in which case, the minimum bank balance requirement is $50,000.

Other factors considered by the credit card company before making the decision include: your business’ revenue, source of funds and the business model.

Sam’s Club Business Mastercard

Another good option for those searching for a business credit card with no personal guarantee is Sam’s Club Business Mastercard.

One of the benefits of this corporate credit card is that it is a Mastercard. It means that it can be used at most of the online and offline retail outlets. Also, it offers rewards and cashbacks on travel, fuel consumption, and hotel reservations.

The only drawback to signing up for this credit card is that you will have to pay an annual membership fee of $45.

To qualify for a guarantee-free credit card at Sam’s Club, your business should meet the following criteria:

  • annual revenue should at least be $5 million
  • should have hired at least 10 employees
  • should be in business for at least two years

If you do not meet this criteria, you can still acquire a credit card from Sam’s Club, but you would unfortunately need to give a personal guarantee.

Ramp Corporate Card

This credit card company does offer business credit cards with no personal guarantee, but it has not publicly announced any criteria for the companies it offers this benefit to. Maybe because it does not want to commit anything without first going through a financial health check of the business. They are known to conduct a strict analysis of the company’s cash flows.

There are many other financial organizations that do issue corporate credit cards without personal guarantee like Shell Small Business Card and ScaleFactor Charge Card. However, you should research the requirements, return rates and benefits in detail before applying for one.

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