Starting a business is exciting, but it can also be tricky when it comes to finances. You want to build credit for your company, but you don’t want to put your personal finances at risk. That’s where special business credit cards come in! These cards are designed for startups and small businesses, and they don’t require you to personally guarantee the debt. This means you can build a strong credit history for your company without worrying about your personal credit being affected. In this blog post, we’ll share five of the best business credit cards that don’t need a personal guarantee or a credit check, so you can get started on building a solid financial foundation for your business.
A. Popular Business Credit Cards that do not require Personal Guarantee or Credit Check
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Brex Card for Startups
Why it’s great for startups:
The Brex Card is designed specifically for startups and fast-growing companies, offering unique features that make it an appealing option. One of its standout advantages is that Brex uses your company’s financials, such as cash flow and bank account balance, to determine your creditworthiness. This means no personal guarantee is required, and there’s no personal credit check—ideal for startups still building their business credit profile.
Pros:
- No Personal Guarantee: You won’t be personally liable for any debt your company accrues.
- No Credit Check: Approval is based on your company’s cash flow, not your personal credit score.
- Generous Rewards: Earn up to 8x points on purchases in categories like travel, dining, and software, which can be crucial for startups with high business expenses.
- Tailored for Startups: Brex understands startup needs and scales your credit limit based on your company’s growth.
- Expense Management Tools: Built-in financial tools help track spending, categorize expenses, and integrate with accounting software.
Cons:
- Not Ideal for Early-Stage Startups: If your startup isn’t generating consistent revenue yet, approval may be difficult.
- Limited to Certain Business Types: The card is mostly aimed at tech startups and companies with venture funding.
Overall, the Brex Card is a smart choice for high-growth startups with healthy financials looking to build business credit without personal liability.
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Ramp Corporate Card
Why it’s great for startups:
The Ramp Corporate Card is an excellent option for startups seeking a simple and flexible credit card solution. It offers no personal guarantee and no credit check, making it accessible to businesses that prefer to keep personal finances separate from business operations. Instead of evaluating your personal credit, Ramp bases approval on your company’s financial health, including cash flow and bank balances.
Pros:
- No Personal Liability: With no personal guarantee, business owners aren’t personally responsible for the card’s balance.
- No Credit Check: Ramp uses your business’s performance, such as cash on hand and revenue, to determine credit limits.
- Cashback Rewards: Ramp offers a flat 1.5% cashback on all purchases, making it a reliable option for startups looking for consistent rewards on every transaction.
- Comprehensive Expense Management: Ramp provides built-in tools to automate expenses, budgeting, and reimbursements, helping startups streamline financial operations.
- Free Software: Ramp offers free financial tools and integrations, saving startups money on additional software costs.
Cons:
- Requires Strong Business Financials: Approval is dependent on your company’s financial health, so early-stage startups with low revenue may struggle to qualify.
- Flat Rewards: The 1.5% cashback, while solid, may not be as competitive as category-specific rewards offered by other cards.
Overall, the Ramp Corporate Card is ideal for startups with steady revenue and a need for streamlined financial management without personal liability.
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BILL Divvy Card
Why it’s great for startups:
The BILL Divvy Card is a powerful tool for startups seeking a flexible credit option with integrated expense management. Divvy doesn’t require a personal guarantee or a credit check, making it accessible for companies with limited or no personal credit history. Instead, it evaluates your business’s cash flow and performance to set dynamic credit limits.
Pros:
- No annual fee: Contrary to most business cards it charges no annual fees, which is a huge relief for the startups.
- No Personal Guarantee: Business owners are not personally liable for debts, keeping personal and business finances separate.
- No Credit Check: Approval is based on your company’s financial health, meaning no impact on your personal credit.
- Customizable Rewards: Earn up to 7% points back based on how quickly you pay your balance, providing an incentive to manage cash flow efficiently.
- Real-Time Expense Tracking: Divvy’s integrated expense management tools let you track and control spending in real time, making it easier to manage budgets.
- Dynamic Credit Limits: Credit limits are adjustable, growing as your business grows, which can be particularly useful for scaling startups.
Cons:
- High Rewards for Fast Payment Only: To unlock the maximum 7% rewards, payments need to be made quickly, which may not be ideal for businesses requiring longer billing cycles.
- Approval Dependent on Revenue: Early-stage startups without steady cash flow may face difficulty qualifying.
Overall, the BILL Divvy Card is a strong choice for startups looking for flexibility, rewards, and real-time financial control without personal liability.
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Torpago Corporate Card
Why it’s great for startups:
The Torpago Corporate Card offers a unique solution for startups by determining credit limits based on business cash flow rather than personal credit scores. This means no personal guarantee is required, and there’s no credit check, making it an attractive option for startups with solid revenue streams but limited credit history.
Pros:
- No Personal Guarantee: Business owners aren’t personally liable for the card’s debt, which protects personal assets.
- No Credit Check: Torpago uses business financials, such as cash flow and revenue, to set credit limits, keeping personal credit separate from business liabilities.
- 1.5% Cashback: Earn 1.5% cashback on every purchase, offering steady rewards for businesses with frequent expenses.
- Flexible Credit Limits: Credit limits grow with your business as revenue increases, providing scalable financing options for early-stage startups.
- Expense Management Features: Torpago includes spending controls, real-time reporting, and accounting integrations, streamlining financial management for growing businesses.
Cons:
- Revenue-Dependent Approval: Startups without consistent cash flow or revenue may have difficulty qualifying, limiting access for very early-stage companies.
- Flat Rewards: While 1.5% cashback is solid, it may not match higher rewards in specific categories offered by other business cards.
Overall, the Torpago Corporate Card is well-suited for startups with promising cash flow looking for fast access to credit and simple, flexible rewards without personal liability.
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SVB Innovator Card
The SVB Innovator Card, offered by Silicon Valley Bank, is designed specifically for startups, tech companies, and entrepreneurs in need of flexible credit. It provides financial management tools to help new businesses scale, without requiring a personal guarantee or involving a personal credit check.
Pros:
- No Personal Guarantee: Business owners aren’t held personally liable for the card’s balance, keeping personal and business finances separate.
- No Credit Check: Approval is based on your business’s financial health, making it a great option for startups with strong cash flow but limited personal credit history.
- Expense Management Tools: SVB Innovator Card integrates with expense management software, allowing startups to track spending and manage budgets more effectively.
- Startup-Focused Features: Designed specifically for startups and tech companies, the card aligns with the needs of fast-growing businesses.
- Scalable Credit Limits: As your business grows, the card’s credit limits can increase based on your business’s performance.
Cons:
- Revenue Requirements: Startups without consistent cash flow or financial backing may find it difficult to qualify.
- Limited Availability: SVB primarily serves startups in the tech space, so businesses outside of this sector may not find the card as useful or easy to access.
Overall, the SVB Innovator Card is ideal for tech-driven startups needing flexible credit options without risking personal liability. However, it’s better suited to businesses with steady cash flow or venture funding.
B. Popular Business Credit Cards That DO Require Personal Guarantees or Credit Checks
Though they require personal guarantees or credit checks, these three business credit cards are popular for several reasons, thanks to their rewards programs, flexibility, and widespread brand recognition.
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Regions Business Credit Card.
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- Why it’s popular: Regions is well-known for its competitive interest rates, flexibility, and a wide range of benefits for small and medium-sized businesses. The card offers useful features like cashback rewards and promotional financing options, which can help businesses manage cash flow more effectively.
- Notable benefits:
- Customizable rewards, such as cashback and travel perks.
- Special offers for balance transfers and low-interest rates on purchases.
- Why it’s not great for startups: It requires a personal guarantee and a credit check, making it less ideal for businesses that want to keep personal and business liabilities separate.
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American Express Business Cards
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- Why it’s popular: American Express is known for its superior customer service and robust rewards programs, particularly for businesses that spend heavily on travel, dining, and office supplies. Cards like the Amex Business Platinum and Amex Business Gold are favored for their travel perks, membership points, and premium services.
- Notable benefits:
- High rewards potential, especially for travel and large business purchases.
- Exclusive access to airport lounges and travel benefits.
- Comprehensive business tools and fraud protection.
- Why it’s not great for startups: Requires a personal guarantee and a credit check, and many Amex cards come with high annual fees that may be tough for small startups to justify.
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Sam’s Club Business Mastercard
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- Why it’s popular: Sam’s Club Business Mastercard is appealing for businesses that make frequent purchases at Sam’s Club and spend heavily on gas. The card provides competitive cashback rates on fuel, dining, and travel, making it an excellent choice for businesses with high travel or transportation expenses.
- Notable benefits:
- Up to 5% cashback on gas, 3% on dining and travel, and 1% on other purchases.
- No annual fee if you have a Sam’s Club membership.
- Flexibility for both in-store and online purchases.
- Why it’s not great for startups: Requires a personal credit check and a Sam’s Club membership, and personal liability can make it less suitable for startups trying to separate their personal and business finances.
C. The Importance of Fundability for Business Credit Card Approval
Before applying for any business credit card, it’s essential to understand fundability. Fundability refers to how attractive your business looks to lenders and creditors. It encompasses various factors that indicate the financial health and reliability of your business. Without a strong fundability profile, even the best no-personal guarantee cards may be difficult to obtain. By improving your fundability, you increase the likelihood of getting approved for credit cards without a personal guarantee and no credit check. This, in turn, allows you to access the credit you need to scale your startup while keeping personal liabilities off the table.
D. How to Choose a business credit card If you are a start-up.
Choosing a business credit card with no personal guarantee is essential for entrepreneurs and startups wanting to protect their personal finances. Here are key factors to consider:
- Evaluate Your Business Needs: Assess your spending habits and determine how much credit you will need. Look for cards that offer rewards aligned with your expenses, such as travel or office supplies, and consider cards with dynamic credit limits that grow with your business.
- Research Card Features: Examine rewards programs for cashback, points, or travel perks, and compare fees and interest rates. Opt for cards with minimal fees that fit your budget.
- Check Approval Requirements: Ensure the card doesn’t require a personal guarantee or credit check. Approval should be based on your business’s financial health.
- Read Customer Reviews: Research the card issuer’s reputation for customer service and ease of use. User reviews can reveal pros and cons.
- Consider Additional Benefits: Look for expense management tools and integration with accounting software to streamline financial management.
- Compare Options: Create a comparison chart of cards that meet your criteria and consider long-term growth potential to select the best option for your needs.
Business credit cards without personal guarantees or credit checks offer excellent opportunities for startups to grow without risking personal financial liability. However, it’s essential to understand both the benefits and limitations of these options. For businesses with solid personal credit, traditional cards like American Express or Regions can offer valuable rewards, but for those focused on building business credit exclusively, cards like Brex and Ramp are often the better fit.
By improving your business’s fundability and choosing the right card for your needs, you can ensure that your startup is set up for long-term success.