Getting business credit without personal guarantee list is a big problem for many new business owners. For starters, this is one of the most difficult things to do, especially if you are going to start your business from scratch. If you have built up a substantial amount of business credit already with a lender, they will likely be very unlikely to provide you with any more credit, let alone without personal guarantees. However, that does not mean you cannot get business credit; it just means you will have to do some work to accomplish this.
Many new business owners begin their business credit building by obtaining a personal guarantee list. They then use that list to obtain credit from a number of sources, including their existing lender and possibly through other lenders as well. The result is that they have a lot of business credit, but none of it is really of the type that they can use to take advantage of when it comes time to apply for loans or credit card offers.
Fortunately, there are other ways to increase your business credit without personal guarantee list. If you have enough business credit already, you can simply begin to pay off any debts you have. This will show potential lenders that you are able to handle debt responsibility, even if you are not currently seeking additional credit. You should also consider opening a business credit line, which can be a bit more involved, but also gives you access to business credit that may not otherwise be available. If you start off with enough credit to get your business started, you may not need a personal guarantee list.
The best method for getting business credit without personal guarantee lists is to start off your business credit building through something called a merchant cash advance. A merchant cash advance is a type of short-term loan that you obtain from a reputable lender who will charge a fee for the loan. Your business credit will then be reported to the lender so that he or she can decide whether or not to extend you a loan if you need one. The fees for these types of loans are usually fairly minimal and allow you to pay back the lender in installments. This will ensure that you always have the money in order to pay off the business loan as well as other debts.
However, many business owners do not have enough business credit to qualify for this type of loan. They may feel that their credit score is not high enough to qualify for an advance. There are alternatives, however. You can increase your business credit by getting small business credit cards. These cards generally have a higher interest rate than regular credit cards, but they do not report to a credit bureau, so business owners can expect to build business credit without personal guarantee lists.
Another option for business credit without personal guarantee lists is to get unsecured business credit cards. These cards require no deposit, so they are a good alternative to unsecured business credit lines for those who qualify. You may even find some unsecured business credit cards with no personal guarantee available, which is very helpful if you are a business owner who has experienced bankruptcy. Businesses often run into financial difficulties at some point. A bankruptcy may not only wipe out personal and business finances, it may leave business owners with few business assets, and almost no business credit.
If you find yourself in a similar . . . . . . situation, there is no reason to despair. Secured business credit cards are available, and you can rebuild business credit without personal guarantee lists. These cards may even be a good choice for those who have had financial difficulties in the past. Because they are backed by collateral – often your business's cash reserves – they offer a certain level of security.
It is important to remember that getting business credit with no personal guarantee is still possible, but you must be willing to do the work. The cards are easy to obtain, and many issuers will report your business activity to the credit reporting bureaus as long as you meet the eligibility requirements. The key to building credit through these cards is good management of cash flow and being able to pay your bills on time. Businesses often look to other business credit card issuers to help fund their growth – and they should. But business credit without personal guarantee lists is still possible, and with a little hard work and patience, it can be achieved.