A personal guarantee means that if the company fails to pay its debt, you and/or your shareholders are on the hook. In addition, your personal guarantee could affect your family. Some banks require a spouse’s guarantee in addition to your own, so assets held solely in your spouse’s name are fair game for the lender.
What is a spousal guarantee?
Your credit application includes a form personal guarantee, that includes a spouse’s guarantee. The spouse raises as a defense to pay on the guarantee that your company has violated the Equal Credit Opportunity Act (ECOA).
Can you get a business credit card with a personal guarantee?
If you don’t want to get a business credit card with a personal guarantee, your choices are narrowed to corporate gas cards, prepaid business cards and cards that don’t report to the personal credit bureaus. Gas cards.
What does a personal guarantee on a credit card mean?
The personal guarantee exists outside those limited-liability protections. It’s saying that both you and the company are responsible for the credit card debt. It gives the credit card issuer the explicit right to come to you personally for payment. Think of the personal guarantee as akin to co-signing a credit card for your business.
Do you need a personal guarantee for a Superamerica business card?
If your company has been open for at least three years, SuperAmerica won’t ask you for a personal guarantee. Shell Small Business Card: You can only buy Shell gas with this credit card. It does not require a personal guarantee if your business has been open for at least 3 years and has more than $1 million in sales per year.
How to get a shell small business card without a personal guarantee?
The downside is your company needs to have at least three years of working history. To get the Shell Small Business Card without a personal guarantee, you need at least $1 million in annual revenue. Prepaid business cards. You can get prepaid cards such as the Brinks Business, Bento Business, Netspend and PEX.
