Key takeaways
- A personal guarantee makes you liable if the business can’t pay.
- No-guarantee cards approve based on the company’s finances.
- Expect requirements such as a minimum bank balance.
- Bank-issued business cards usually require a guarantee.
What a personal guarantee means
With a personal guarantee, you agree to pay the card balance yourself if the business can’t. It also links company spending to your personal credit. Most bank-issued business credit cards require one.
How no-guarantee cards decide
Instead of your personal credit, these providers look at the business: cash in the bank, revenue and spending patterns. Limits are often set from your balance and adjusted as it changes.
Cards that state no personal guarantee
| Market | Card | What to know |
|---|---|---|
| Canada | Venn Corporate Card | 1% cashback on all spend |
| Canada | Ramp | Needs at least CA$25,000 in the bank; available in 8 provinces and territories |
| US | Brex | Built for startups and growing companies |
| US | Ramp | Charge card with expense tools |
| US | BILL Divvy | BILL says it isn’t required; check the card agreement |
What to check before you apply
- The minimum bank balance or revenue required.
- Whether the card is charge, prepaid or credit, and how often you must pay.
- The card agreement itself, to confirm who is liable.
- Fees on foreign spending if you buy from abroad.
A worked example
A Canadian startup with CA$60,000 in the bank wants cards for five employees without the founders being personally liable.
- Venn issues cards with no personal guarantee and 1% cashback on all spend.
- Ramp also requires no personal guarantee, and the startup meets its CA$25,000 minimum balance, as long as it’s in a province Ramp serves.
Limits on these cards are usually tied to the company’s bank balance, so they may grow as the business does.
Common mistakes
- Assuming “corporate” means no guarantee; check the card agreement.
- Applying for a bank card that needs strong personal credit when a balance-based card would approve faster.
- Ignoring foreign transaction fees if the team spends in USD.
Providers that can help
No personal guarantee and 1% cashback
No personal guarantee, for established companies
No personal guarantee, built for US startups
FAQs
Can I get a business card with no personal guarantee?
Yes. Several fintech corporate cards, including Venn and Ramp in Canada and Brex and Ramp in the US, state that no personal guarantee is required. They approve your business based on its finances instead.
Why do some cards require a personal guarantee?
Lenders use it to reduce their risk, especially for small or new businesses. Bank-issued business credit cards usually require one.
Does a no-guarantee card affect my personal credit?
Generally no, because the business rather than the owner is responsible for the balance. Confirm this in the card agreement.
What limit will I get without a personal guarantee?
Usually a limit based on your company’s bank balance and cash flow, which can rise as your balance grows.
Can a new business get a no-guarantee card?
Often yes, if it meets the provider’s balance or funding requirements, such as Ramp’s CA$25,000 minimum in Canada.
Sources: Published card terms from Venn, Ramp, Brex and BILL.