Starting a business can be quite challenging, especially if you have cash limitations. Entrepreneur is often forced to fund their businesses out of pocket to keep things going before it gains traction. Sometimes they have to take out loans, and business credit cards provide an easily accessible avenue for financial support.
Unfortunately, 20 percent of new businesses in their first year and this exposes lenders to risk of non-repayment. Lenders, therefore, require a personal guarantee from people applying for business credit cards to start a business. However, some business credit cards do not require a personal guarantee.
Top personal guarantee business credit cards
- American Express Blue Business Plus Credit Card- It is an ideal business credit card for businesses that want to skip bonus categories. Cardholders receive 2X points on every dollar of purchases with the annual limit for those points set at $50,000. It also charges zero annual fees with 0% APR on balance transfers and new purchases.
- Ink Business Cash Credit card- It offers a $750 cashback for $7,500 worth of purchases in the first three months after applying for the card. It also offers a 5% cashback on $25,000 worth of purchases that include phone, internet and cable services, as well as purchases from supply stores. The card offers 0% Intro APR in the first year and a regular variable APR between 13.24% and 19.24%.
- Ink Business Preferred credit card- it offers 100,000 bonus points for purchases worth $15,000 in the first three months. Cardholders also receive 3 points for every dollar if customers spend $150,000 on various business categories, including travel. The card has a $95 annual fee and 15.99% to 20.99% variable regular APR.
Top non-guarantee business cards ideal for limited credit business owners
- Capital One Spark Credit for Business- It is one of the few business credit cards out there available for business owners whose personal credit is not at its best. It offers a 1% cashback for all purchases and $0 annual fees.
- Wells Fargo Business Secured Card- Applicants are required to provide a $500 minimum deposit to secure this business credit card. It has a $25 annual fee, and applicants receive 1.5% cash for every purchase.
- BBVA Secured Visa® Business Credit Card- there is no annual fee in the first year, but a $40 annual fee applies in the second and subsequent years. Cardholders receive 2x points for restaurant and gas station purchases, 3x points for purchases at office supply stores and 1X point for every $1 spent on any other items.