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Keep Your Personal Credit Intact with a Business Line of Credit no PG

November 15, 2023
Business Line of Credit no PG Credit Suite

Are you looking for a small business line of credit with no PG? It makes sense to look for a small business line of credit with no personal guarantee because personal guarantees represent a risk to any personal asset you own.

Personal guarantees are essentially a pull on your personal credit. A hard pull in particular is a type of personal credit check which can lower your personal credit score.

Business owners don’t always have a choice of avoiding a personal guarantee. But there is a business line of credit choices that do not require a personal guarantee. Like unsecured loans, they keep your personal assets safe from your business’s success or failure.

Let’s dive into them.

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Business Line of Credit Option 1 – National Business Capital

National Business Capital offers a marketplace of lending. A small business owner can fill out one application and be connected to several lenders. 

Being able to review choices from more than one lender helps when you want to compare more than a few small business lines of credit.

In general, you can get an unsecured business line of credit in amounts of $25,000 to $2 million. Terms are revolving. The time to funding is 24 to 48 hours. 

Because small business owners only pay interest on the amount drawn and not the entirety of the line, this kind of loan has become popular. They are a lot like a business credit card but without plastic.

Since there are no restrictions on this type of business financing, you can use it to cover cash flow gaps or really for any other purpose you so desire. 

As long as you keep your line active, or continue drawing and paying it down, you can utilize a line of credit for months or even years. If you are not actively using it, though, small business lines can expire.

In general, the interest rate will be less than it would be for a small business loan. 

If you can put up collateral, then you can get secured small business lines of credit. Business owners can often get a higher approval amount this way. 

But if they have significant annual sales, they can get an unsecured business line of credit, even with bad credit. Personal credit does not weigh as heavily when the annual sales of a small business can do all the talking.

Get Credit Line Hybrid Financing from Credit Suite

Business Line of Credit Option 2 – Sunwise Capital

Sunwise Capital offers small business lines of credit options with a fast online application. You can get approval from this lender in 24 hours. 

You will have to be in business for 12 months or more. Your business must be bringing in at least  $15,000 in revenue per month. But they will not take bad credit, as their minimum personal credit score requirement is 600.

Hence an entrepreneur with a poor personal credit history can still qualify. You can get $10,000 to $250,000. Repayment terms run from 6 to 12 months. Pay it back with fixed monthly payments or weekly payments to repay each draw.

Their revolving credit line works a lot like a long term loan. Like a secured business loan, you will put up some form of collateral. But unlike a standard secured loan, you can keep reusing the credit line, up to its limit. 

This lender’s commercial lines are more like short-term loans and, with a lower collateral requirement, they are also like an unsecured business credit card.

When a borrower has a poor personal or business credit score, a short-term commercial business loan can be the best financing option. This form of financing can come with a higher credit limit as well. 

Sunwise recommends that their line of credit be used to supplement cash flow shortfalls. The credit score requirements for their unsecured business line of credit are higher than for their unsecured business loans.

Their financing will not require traditional personal guarantees from entrepreneurs. 

Business Line of Credit Option 3 – Chase for Business

Chase for Business offers business lines of credit with credit limits of up to $500,000. These lines of credit have a five-year repayment period. The rate of interest is tied to the Prime Rate. 

For higher amounts of financing, Chase offers a commercial line of credit, with a credit limit of over $500,000. Initial terms are one to two years, but there is an option to renew. The balance is due in full at the end, as a balloon payment. The rate of interest is indexed to SOFR.

Business Line of Credit no PG Credit SuiteInterest rates are based on such factors as your banking relationship, credit history, and collateral. With both of these types of business credit financing, you can initiate advances and make payments online. 

Chase can be a good choice because they also offer business credit cards, and you can get an employee card at no additional charge.

You can get a savings account, along with secured and unsecured business loans. For a business that also needs its own business bank account, this lender can also fill the bill. 

You can also get commercial real estate financing, but the real estate serves as the collateral. As a result, it is not an unsecured business loan. 

For a business credit card with this lender, you will not necessarily have to provide a personal guarantee. Their business credit card application comes with a choice of providing your Social Security number (and therefore a personal guarantee) or an EIN.

They are also a Small Business Administration-approved lender. 

Get Credit Line Hybrid Financing from Credit Suite

Business Line of Credit Option 4 – Fundbox

Fundbox provides a business line of credit. For under $50,000, it does not appear to require a personal guarantee. 

To qualify for their line of credit, you will need to have been in business for six months or more. Your business will have to have $100,000 in annual revenue or more. In addition, you will need to have a personal credit score of at least 600.

Also, you will have to be doing business in the United States. And, your business will need to have its own business bank account. 

Fill out a quick application online. Funds can be available as soon as the next business day if approved. And, you can choose your repayment plan each time you draw funds. This is with no prepayment penalty.

Get up to $150,000 to help with cash flow or for any other financing purpose. 

The place where Fundbox really shines is with its Flex Pay plan. Use Flex Pay and get 3 extra business days to repay. There are no fees when you pay by ACH or debit card, or a small processing fee when you pay by business credit card.

One use of Flex Pay is to cover business expenses. When your vendors debit your Flex Account, we’ll cover the expense—up to your available limit. Flex Pay helps to ensure that your payments are made on time, giving you 3 extra business days to repay.

In a way, Fundbox’s Flex Pay plan provides net 3 terms on top of whatever terms your business enjoys with its vendor accounts.

Business Line of Credit Option 5 – Ramp

Because a business line of credit is a lot like a business credit card, it makes sense to talk about business credit cards. Because the best business line of credit for your business could easily be a credit card. 

Since some business lines of credit actually do come with plastic, they are virtually indistinguishable from a business credit card. 

Ramp offers a business credit card with no PG. Get 1.5% cash back with free automated receipt matching. You can get both physical and virtual cards as needed. There are no setup, foreign transaction, or replacement fees for this Visa business credit card. 

Similar to Fundbox, Ramp has a Flex program for invoice financing. But unlike Fundbox, the terms can go up to 90 days. As a result, a business can enjoy the equivalent of net 90 terms. This does not come free, of course.

Particularly for new businesses, having such generous payment terms could, to an extent, take the place of startup business loans

Due to its numerous easy pay and automation features, Ramp business credit cards might just be the best credit card for newer businesses, mostly and wholly online businesses, and very small businesses with fewer than five employees. 

As with any business credit card where you do not have to provide a personal guarantee, the Ramp corporate card will not report to any personal credit bureau. 

While their literature indicates that they report to business credit reporting agencies, there does not appear to be any specificity as to which one.

Get Credit Line Hybrid Financing from Credit Suite

Business Line of Credit Option 6 – Divvy

Divvy offers both physical and virtual business credit cards. You can also get a business credit line for up to $15 million. And you can apply for credit increases from your dashboard.  You will have to provide a personal guarantee but they do look at a lot more than your personal credit scores. Business Line of Credit no PG Credit Suite

They provide advanced fraud protection and several types of contactless payment options. With their virtual business credit cards, your business can use separate numbers to pay each vendor or even use a unique number for recurring charges. 

Your frequency of payments will determine how much you can earn in rewards. For a small business that follows a weekly payback schedule, Divvy will provide 7x the points on restaurants, 5x on hotels, 2x on recurring software subscriptions, and 1.5x everywhere else.

In contrast, a business that is following a monthly payment schedule will only get 2x rewards for restaurants and hotels, 1.5x on recurring software subscriptions, and 1x everywhere else.

Divvy also has a robust free app where users can do pretty much anything they can do on a personal computer or a laptop.

One downside is that it was difficult to find Divvy’s eligibility requirements. However, if they are like Ramp at all, there are probably bank account balance minima that you must meet in order to qualify for their business credit cards. 

Divvy uses more than one method for underwriting. As a result, if you do not qualify with traditional underwriting, they can look at other factors for approval. However, there is really no elaboration on what these other factors might be.

But, often it will be monthly income, time in business, and the like.

Business Line of Credit Option 7 – Brex

Brex offers business credit cards for venture capital-backed startup businesses. They will determine your business’s eligibility if you can meet at least one of the following criteria:

  • Revenue of more than $1 million per year
  • Cash on hand of more than $500,000
  • More than 50 company employees
  • Equity investment can be any amount from a business accelerator, angel investor, VC, or web3 token (a web3 token is a medium of exchange used in the cryptocurrency economy)
  • For tech startups, they need a referral from an existing partner or customer if they are on their way to meeting these criteria but are not quite there yet

If your scaling company meets any of these criteria, Brex will analyze your business model, source of funds, spending patterns, etc., in order to determine approval.

Applying for a Brex corporate card does not mean offering a personal guarantee.

Operating a bit like a loan, if you qualify for a Brex credit card with monthly payments, your expenses are consolidated into one monthly payment that is deducted automatically from your linked account.

But like all unsecured loans and other types of unsecured financing, none of your personal or business property is used for security.

Their rewards system is atypical in that a lot of the rewards they offer are designed with VC-backed startups in mind. These include executive coaching and billboards. 

You can even use the points from using their business credit cards to pay for mental health sessions or aid to Ukraine. 

Brex is also unique in that they offer venture debt financing, which is often more tech startup-friendly than a loan. And this is all without requiring a personal guarantee.

More Business Credit Cards with no PG<

And these are not the only business credit card options out there! You can get a business credit card with no PG with the Shell Small Business Card, the Sams Club Business Mastercard, and the Stripe Corporate card. None of these business credit cards ask for a personal guarantee.

Takeaways

For businesses that cannot get or do not want to get a business loan, and owners who do not want to get a home equity loan, a line of credit can be tempting. But they are often best without a personal guarantee. This kind of business financing is out there!

Business credit can also help businesses avoid PGs and it increases your chances of getting any type of loan. Contact us today to learn more about how we can help you finance your business without putting your personal assets at risk.

About the author 

Janet Gershen-Siegel

Janet Gershen-Siegel is the seasoned Finance Writer and a former content manager at Credit Suite. She has been admitted to practice law for over 30 years, with a focus on litigation and product liability, and is a published author, with writing credits at Entrepreneur, FedSmith.com and BusinessingMag.com.

She has a BA in Philosophy from Boston University, a JD from the Delaware Law School of Widener University, and a MS in Interactive Media (Social Media) from Quinnipiac University.

She regularly writes for Credit Suite, which helps businesses improve Fundability™, build credit, and get approved for loans and credit lines.

Her specialties: business credit, business credit cards, business funding, crowdfunding, and law

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