A business credit card is an indispensable financing resource for many small businesses. It assures a steady, flexible stream of cash while providing perks like points and rewards in the process. If you’re seeking to obtain a business credit card but your company has a poor credit score, or you’re a new business with little to no credit history, you’re considered a higher risk borrower. Banks and lenders will likely require you to present a personal guarantee – meaning documentation of your personal credit history – to reduce this risk. A personal guarantee essentially shows lenders that, if for any reason your business is unable to pay off the business credit card balance, that you the business owner are personally able to (and holds you responsible for doing so).
Finding a lender that won’t require a personal guarantee can be challenging. Plain and simple, lenders are not comfortable handing out a financing resource without some sort of back-up plan in place should you default on payments. Not to worry. We’ve gone ahead and compiled a list of the six best credit card options that won’t require a personal guarantee:
1. Shell Small Business Card
The Shell Business Card (offered by the Royal Dutch Shell Company but issued by Citibank), is a perfect credit card for companies and entrepreneurs operating in the transportation industry – particularly those that manage a fleet of vehicles or trucks.
This is due to the limitations of its use. The Shell Small Business Card can only be used to purchase products bought at the Shell convenience stores. This includes oil and gas purchases at Shell Stations. Cardholders can enjoy six cents of rebates per gallon of gasoline bought, so the card allows companies to efficiently track their fuel spending while reducing that spending at the same time. If and when you need your vehicles maintained, your Shell Card also affords you a 15% discount in any participating Jiffy Lube branches nationwide.
Again, the Shell Small Business Card is certainly most beneficial for companies working in transportation. It doesn’t require a personal guarantee and it’s free of any recurring or account set-up fees. You also won’t have to pay for any additional cards you may request
Requirements Needed to Apply for Shell Small Business Card
The Shell Small Business Card doesn’t have stringent requirements. You’ll have a higher chance of approval if your business has a credit score of at least 580 or higher.
2. Stripe’s Corporate Card
Stripe is not a bank nor a financing company, but a technology company that serves as an avenue for online payments. The company has become an invaluable tool for the rising e-commerce industry and now offers a Corporate Visa Credit Card to its members.
The Stripe Corporate Card offers amazing deals for its users. While it may not follow the traditional credit card reward program, it does offer the cardholders with instant cashback on the products or services that they spend most of their money on. Typically, the users can get a 2% cashback on their top two categories and 1% cashback on any other expenses. Stripe also offers fraud protection. The credit card users can simply report their card lost or stolen through their Stripe Dashboard and the Stripe team will automatically disable it. If there are any proven fraudulent transactions made, the amount will be credited back to your account.
Stripe Corporate Cards don’t charge their users with annual fees and foreign transaction fees. The company doesn’t allow its users to have an outstanding balance on their accounts, so there’s no reason to worry about APR fees.
The one downside of a Stripe Corporate Card is that it doesn’t offer any travel benefits. If your business does require you to travel from time to time, you may need to obtain an additional credit card solely for that purpose.
Requirements Needed for Stripe Corporate Credit Cards
According to Stripe’s website, you can get your virtual credit card up and running within minutes after your application. There’s no need to present or submit paperwork or a personal guarantee.
Once approved, Stripe will grant you a credit limit based on your payment history and your bank history. The newer your Stripe account is, the lower your credit limit will be. As you establish your payment history in your Stripe account, you’ll have better chances of increasing your credit limit.
3. Brex’s Credit Card
Brex Inc. is a financial service and tech company based in San Francisco. It offers business credit cards without personal guarantee that is free of annual fees and personal guarantees. Its main purpose is to provide businesses with a funding solution of credit limits based on the company’s cash flow. Brex doesn’t evaluate a company’s eligibility based on the owner’s credit report, it instead looks at the business’ spending habits and sales volume to determine its qualifications.
Brex’s credit card is one of the most sought-after financing resources in the business world because it offers businesses amazing perks with zero annual fees – particularly those in the tech, lab sciences, and e-commerce industries – and without a personal guarantee. Users can earn points every time they use their credit card to pay for travel, food, and even marketing strategies like digital ads. It’s powered by MasterCard, so the cardholders can use it in any country that accepts MasterCard payments without having to worry about foreign transaction fees.
What makes Brex’s Credit Cards even more attractive to business owners these days is its remote work-focused reward scheme. Since the beginning of the COVID-19 pandemic, Brex Inc. has allowed businesses to earn as much as seven points per dollar for every remote-work tool they purchase, as well as three points per dollar on food deliveries and two points on work-related software subscriptions.
Requirements Needed to Apply for Brex’s Credit Cards
Brex doesn’t require a personal guarantee to obtain their corporate credit card, but their requirements for approval are more stringent than the options previously listed. Applicants must show that their business generates annual revenue of at least $4 million and that its annual expenses reach at least $250,000. Businesses should also have at least $100,000 in the bank.
4. Bremer Bank Visa Signature Business Company Card
The Bremer Bank Visa Signature Business Company Card is one of many financing options that Bremer Bank offers to business owners with medium to large enterprises. This card provides a generous line of credit with access to a free rewards program and does not come with annual and APR fees. If you want to apply for one, all you need to do is visit one of the Bremer Bank branches in Minnesota, North Dakota or Wisconsin.
According to Supermoney, the benefits of this business credit card include travel assistance, emergency support, fraud liability, and accurate and timely reporting to the credit bureaus. A more specific list of the benefits associated with the Bremer Visa Signature Business Company Card is available upon request. Simply fill out a form on the Bremer Bank’s website and they will email you the desired information.
Things to note: Bremer Business Credit Cards do charge users with a 3% foreign transaction fee on any purchases made abroad. If your business requires international travel, its best to use an alternative business credit card that doesn’t charge a foreign transaction fee for those expenses. Bremer also charges a late penalty of $39 to your account if you miss the deadline for payment.
Requirements Needed to Apply for Bremer Bank Visa Signature Business Company Card
While Bremer Bank doesn’t require a personal guarantee, it does require a good credit score (at least 780 or better). Remember, you have to apply for this one at the bank so you can also expect them to ask for a list of documents like personal and business financial statements, credit reports, and your company’s balance sheets.
5. Office Depot OfficeMax Business Credit Account
Office Depot and OfficeMax merged in 2013 to form one of the largest office retail companies in the world. Businesses that regularly purchase office supplies from Office Depot or OfficeMax may benefit from applying for an Office Depot OfficeMax Business Credit Account that the company now offers.
These credit cardholders can enjoy a $50 savings on their first purchase amounting to $150 or more, and there’s no annual card fee. If you need multiple cards for other authorized persons in your company, you will not have to pay extra fees for additional cards.
Office Depot OfficeMax Credit Accounts can only be used for purchases made in Office Depot and OfficeMax branches or online stores.
Requirements Needed to Apply for Office Depot OfficeMax Credit Accounts
You can apply for an Office Depot OfficeMax Credit Account from one of the Citibank branches. Businesses with a fair credit score (650 and higher) may qualify for this credit card. Your company should be at least three years old with annual sales of over $5 million. *Office Depot and OfficeMax also requires the applying business to be affiliated with either a government entity or a non-profit organization.
6. Ramp Corporate Cards
Ramp Corporation is a start-up company that recently opened its doors to the public. They provide business credit cards without personal guarantee to small business owners and offer an accounting system that helps them regulate their company’s spending habits. They believe that through this program, entrepreneurs can cut back on their expenses and save more money as they move forward with their operations.
Ramp offers an unlimited number of cards for all your employees without extra charges. You can set a credit limit for each and receive a monthly report for all purchases made within that particular month. There are no transaction fees or annual fees, and even the interest rates are waived with this credit card. According to the company, it plans on making profits through interchange fees, or the fees that its card issuers charge the stores for credit card payment processing.
Unlike other credit cards, the points system of Ramp isn’t complicated. You don’t earn more points when you purchase a particular type of service, like dining, travel, or subscriptions. Instead, your company will earn a uniform 1.5% cashback on all purchases made using the Ramp card.
The Ramp Corporate Card also offers a $175,000 ‘exclusive partner rewards’ to their customers. This means that their customers can enjoy a variety of perks in the form of credits and discounts from the companies that Ramp partners with. Here are some examples:
- $150 credit on Google Ads
- 20% off on your first year of Carta subscription
- $50,000 on Segment Credits
- 90% off on a year of DocSend Advanced Plan subscription
Requirements Needed to Apply for Ramp Corporate Card
Currently, Ramp still hasn’t revealed their eligibility requirements to the public. If you’re planning on applying for their credit card, it’s best to contact them directly to know how you can qualify. They do, however, offer their credit cards to non-individual companies with a high potential for growth. If your company is a sole-proprietorship, there’s a big chance that you won’t be eligible for the Ramp Corporate Card.
Your credit limit will be primarily based on your company’s cash flow and other financial health indicators. Be sure to have all of your company’s financial statements ready when applying for this credit card.
Business Credit Cards Without Personal Guarantee: Final Thoughts
Adequate working capital is vital for any growing business. But looking for an additional financial resource can be challenging given the strict requirements and qualifications that lenders and banks impose. Although credit cards are relatively easier to apply for than traditional bank loans, it can be hard to find a financing company that won’t require a personal guarantee.
Luckily for businesses, there are a lot of companies that offer credit cards without a personal guarantee. While some may have limitations on how the business can use these cards, it can still be a helpful financial resource for companies that are looking to grow and expand.