Business Loans with No Personal Guarantee

You will most likely have to ask for a loan when starting your own business or managing it unless you have a substantial sum of cash tucked away somewhere in a secret place just in case.

However, joking apart, this step – requesting a loan – should not be taken in haste.

Business loans with no personal guarantee seem to be the most relevant loan option. Why? Read further to discover.

Business Credit Card Benefits

Of all the loan products business credit cards may be the most beneficial because they:Business Loans with No Personal Guarantee

  • are available for all types of business
  • are not reflected on the cardholder’s report, thus, cannot influence your score
  • feature cash back on the most frequent purchases
  • offer pretty large sign-up bonuses
  • offer travel benefits beyond those provided by airlines and hotels
  • offer grace period

Additionally bear in mind two more peculiarities. Firstly, no collateral nature of business credit cards makes them a bit more expensive (higher interest rates) type of a loan. Here you just should consider additional sources of financing if you need money beyond the grace period.

See, also: How to get a business loan with poor credit

Secondly, your business spending will be separated from your personal one which is certainly helpful for tax purposes and accounting.

Is There any Way of Getting a Business CC with no Personal Guarantee?

Personal guarantee is vitally important for business structures, especially small and medium-sized ones. This is so because they – lenders – know that your business and you are closely connected.

Read: Cheap California Insurance

That is why it can be pretty hard to obtain this kind of business loan without personal guarantee.

You have to do everything possible to get exactly this option, otherwise, you will have to bear all the risks that your business may experience.

There are two ways of getting a business CC without your guarantee:

  1. Your credit profile should be somewhere near to perfect. This is the very first thing your lender will scrutinize. Your financial health will be or is already reflected on your business. In other words, your perfect credit rating is another score to your successful loan application.
  2. Think thoroughly what structure your business should have. Small business like e.g. partnership/proprietorship will most likely get declined. If you start up your business as an LL company or corporation, that can increase the chances to get a business CC without your guarantee.

Suggested: Elastic Loan

Making a business loan with no personal guarantee can be both a pretty good business start-up and management alternative because you can set up a rather profitable company without risking your personal property.

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  1. Michael says

    Setting up a business is always risky, that’s why there should be some sort of backup, right? Turning to a bank for help is not the worst idea either. Business loans with no personal guarantee are quite challenging to obtain, though with certain efforts and time spent it’s 100% possible.

  2. Liz says

    When it comes to choosing among business loans, there are so many lenders that offer so many options each. A bit of time and thorough shopping around and the most flexible and convenient conditions are a reality, believe me. As for me, I prefer lines of credit and business credit cards before any other options and though strict in terms of lending but fully reliable institutions. Why? Because only such an approach is the most predictable.

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