Invoice Financing: What It Is and How to Get It 

Whether a small business is facing cash flow challenges or a lack of funding opportunities, there are alternatives to traditional financing solutions.  

Invoice financing is one such solution.  

We explain invoice financing, the pros and cons, and where to secure invoice financing should you need it.  

What Is Invoice Financing? 

Invoice financing is a method in which businesses leverage their outstanding invoices to secure funding.  

Basically, your outstanding invoices act as collateral. You provide your invoice finance lender with copies of your invoices, your chosen invoice financing company provides you with a portion of the total invoice amount, and then you pay back the amount you borrowed plus interest.  

You receive the remaining funds once you’ve paid your invoice finance lender, if applicable. 

If you have a cash flow issue or you’re finding it difficult to qualify for traditional funding sources like a business line of credit or a term loan, invoice financing offers a viable alternative for B2B businesses who want to access funding before their customers have paid.  

But there are a few things you need to know before seeking out these services. This includes the difference between invoice financing and factoring, as well as the pros and cons of the former.  

Invoice Financing vs Invoice Factoring 

Searching for invoice financing will often lead you to invoice factoring. While the two may seemingly be used interchangeably, they’re two different things. Invoice factoring features a different invoice management style. 

Invoice financing helps you tap into funding by sending copies of outstanding invoices to invoice finance lenders. They give you a loan that’s slightly smaller than the total invoice value. Once that invoice is received, you pay the loan amount back plus interest.  

Invoice factoring sees you sell your unpaid invoice. You receive slightly less than the total invoice value. But rather than having to collect customer payments as you normally would, the buyer assumes responsibility for collecting the debt.  

With invoice factoring, you’re still on the hook for late payments or non-payment. There’s still an interest fee tagged onto the agreement that will reduce your payment for however long the client takes to pay.  

There are some companies that may take full responsibility for payment. However, you may have trouble finding those who will take the losses if a customer fails to make their invoice payment.  

You’re likely to be responsible for unpaid invoices with the average invoice factoring company. 

The only thing that fundamentally changes is how unpaid invoices are managed. This is one potential downside of invoice factoring. Small business owners are naturally worried that invoice factoring companies may ruin customer relationships with how they pursue customer payment.  

If you’re concerned that invoice factoring could damage your reputation, use accounts receivable financing rather than invoice factoring. The former helps you stay in control of the process with an invoice financing company.  

Take care that you don’t accidentally apply for similar forms of financing, like invoice discounting (cash advance for invoices), as well.  

Invoice Financing Pros and Cons 

Pro: Easy Access to Cash When You Need It 

Invoice financing is often sought out because of its easier qualification requirements. Your unpaid invoices serve as inherent collateral. Invoicing companies will look at your credit history or your time in business. However, these likely won’t be a primary focus.  

They’ll be looking at how often and when invoices are paid to ensure they’ll get paid.  

This gives you easy access to cash when you need it. If you need to boost your cash flow and tap into quick funding, your invoices can prove useful even before they’ve been paid.  

When your credit score is low and your traditional loan options are limited, you can make invoice financing work for you. 

Con: High Fees and Late Customer Payments Could Cost You 

Invoice financing is quick and accessible. However, it’s not without its downsides.  

The interest fees associated with invoice financing can see you losing cash if you have to wait for long periods before your customers pay your invoice. The longer you have to wait, the more you’ll owe the lender.  

It’s important to remember this before seeking out invoice financing. While invoice financing can be more accessible and help you fund your business fast, it will come at a cost.  

How to Qualify for Invoice Financing 

Qualifying for invoice factoring requires you to: 

• Have creditworthy customers who frequently pay their invoices on time. This means that your chosen invoice financing company will be likely to consider you for financing.  

• Provide your lender with your personal or business credit score. You generally need a high credit score for a business loan, but your credit score shouldn’t play as much of a role in invoice financing.  

• Procure financial documentation like bank statements, business or personal tax returns, and specific items like an accounts receivable aging report. Traditional invoice financing companies will lay out their requirements on their website.  

• Identify which invoices you are attempting to use to seek funding.  

Invoice Financing Companies 

1. BILL 

BILL is a popular financial operations platform you may already be aware of. Their platform helps you streamline your accounts payable process, optimize cash flow, and manage spend and expense.  

They also offer an EIN-only corporate card worth considering if you’re looking to fund your business.  

But one service that may get overlooked is their invoice financing software.  

BILL expedites your invoice financing needs, helping you get paid “in as little as five to ten minutes.” 

BILL’s invoice financing software boasts: 

• A quick, simple application that doesn’t impact your credit or drag out the funding process.  

• Funding of up to $100,000 via BILL’s invoice financing software.  

• No interest or fees if your customers pay within two months (late payments will cost you more with interest). The only fee you pay if your customers pay on time is the 3% origination fee. This helps you save cash and tackle your cash flow problem with ease.  

The most important thing to note is that this is currently only available to a limited number of customers. If you use BILL, you may qualify.  

Other qualification requirements include an eligible bank account that supports instant payments, invoices with an invoice value of at least $100, and a limit of up to $100,000 in invoices you’re looking to fund that fit their required timeframe.  

2. SLR Business Credit 

SLR Business Credit is a business financing company that focuses on funding small businesses through working capital financing, asset-based lending, and invoice-based financing.  

SLR Business Credit will offer around 80 to 90% of your total invoice, allowing you to tap into funding when you need it most.  

The problem? SLR Business Credit is an invoice finance provider that’s not very transparent about its invoice-based financing. They don’t list terms, eligibility requirements, or other details about this form of financing they offer.  

If you’re interested in getting invoice-based financing from them, you’ll have to get in touch with them to speak to an expert.  

3. Upwise Capital 

Upwise Capital is another solid choice to consider when you want invoice financing.  

They give fast advances of an 85% value in invoices, with the opportunity to get the other 15% back later. 

With Upwise Capital, you can expect: 

• Fast funding, sometimes same-day 

• Transparent and simple application process 

• Access to loans over $100,000 

Upwise Capital does have some downsides. Notably, interest rates will be anywhere from 8% to 30%, which is quite sizable. They say they don’t care as much about time in business or credit, but they do list average requirements.  

These include annual revenue of over $150,000, an average credit score of over 600, and at least one year in business. Keep this in mind before applying for invoice financing with them.  

Invoice Financing Alternatives 

Invoice financing is but one funding option if you have limited credit and don’t qualify for other forms of business financing.  

It’s important to remember that there are alternatives. If invoice financing isn’t the best choice, you might wish to consider other asset-based loans.  

Equipment financing, for example, can help you secure funding for essential business expenses. Your equipment serves as collateral, and you can circumvent the strict credit and other eligibility requirements demanded by traditional financial institutions.  

Another option is EIN-only business credit cards. EIN-only credit cards allow you to secure business funding without putting your personal credit at risk.  

Corporate cards and fleet cards will help you fund your business and build credit. If you want to supplement them, consider startup business loans that use EIN-only or a $50k no doc business loan.  

Just take care to remember that these alternatives still come with their own eligibility requirements that you may or may not meet at this point in your small business.  

When to Avoid Invoice Financing 

Invoice financing is less restrictive and much faster than other forms of financing. You get immediate cash, and you can boost your cash flow in a matter of days rather than having to wait. 

But that doesn’t mean it should always be the first financing option you choose.  

Avoid invoice financing when you can secure cheaper small business financing in other forms. For example, suppose you can qualify for a business line of credit or a term loan with a bank or another financial institution. In that case, this will be more advantageous for your business.  

If your options are limited to invoice financing, it might be your best choice. If you can secure other forms of financing that feature lower interest rates and better payment terms, like a traditional business loan, opt for those instead.  

Build Business Credit with eCredable 

Your business credit directly impacts your financing options. But if you don’t have business credit, how do you build it to improve your funding opportunities? 

Start here with eCredable! 

eCredable makes building business credit easy. Our Business Lift and Business Lift+ subscription helps you build credit by reporting your monthly payments as a tradeline to D&B, Experian, and Equifax.  

Then, we help you report your other business expenses, like rent and phone bills, to Equifax for numerous additional tradelines. If your low business credit score is holding you back, our effective credit-building solutions will produce the quick impact you need to progress.  

Join eCredable today to begin your business credit-building journey! 

How to Get a Business Car Lease With No Credit Check 

There are a few ways to get a business car lease with no credit check against your personal score: applying with your business credit, using a cosigner, or taking over someone else’s lease. Here’s what you should know to make them happen. 

How to Get a Business Car Lease With No Credit Check 

To get a business car lease with no credit check—or at least no personal credit check—you must have a sufficiently well-established business and business credit history. In other words, your company must qualify for a lease on its own merits. 

Typically, achieving this starts with setting up your business as a separate legal entity. Rather than operate as a sole proprietorship, file the paperwork necessary to register your company as a limited liability company (LLC) or corporation. 

You’ll receive an Employer Identification Number (EIN), which will be the taxpayer identification number you use when you apply for a business car lease under your business’s identity. 

You can further establish your business as a distinct entity with steps like: 

• Opening a business bank account and keeping it in good standing 
• Getting a dedicated business phone number and adding it to 411 listings 
• Using a separate business address, not a personal residence or P.O. box 
• Opening a business credit card under your company’s name 

In addition to formalizing your business setup, you also need to build business credit with the major business credit bureaus. Essentially, that involves opening tradelines that report to Dun & Bradstreet (D&B), Experian Business, and Equifax Business. 

Lastly, having more time in business can help too, though there isn’t much you can do about it. Not only does it give you more time to build positive credit history, but you may need to meet a minimum—such as two years—as a separate requirement. 

Leasing vs. Buying 

Before you go through the effort of searching for business lease options, consider whether it’s really the right move for your business. Depending on your circumstances, goals, and preferences, buying may be a better fit. 

Car leasing gives you access to newer vehicles with lower upfront costs and predictable payments during the lease term. It's often the better choice if you don’t want to tie up a lot of capital, prefer to drive a newer car, or plan to upgrade every few years. 

However, buying gives your company full ownership of the vehicle. That can be the smarter move if you plan to keep the car long-term or use it heavily. There are no mileage limits or lease-end fees, and you can resell the vehicle or use it as collateral. 

Buying may require a larger down payment or financing approval, but it often results in lower total costs over time if you drive the car into the ground. 

The ratio of business to personal use of the car can also influence whether it makes sense to lease or buy, as it significantly changes the tax implications. It can be worth consulting a tax expert for advice on which makes the most sense for you. 

If you’re more interested in buying, consider pursuing business auto loans without personal guarantee or working with no credit check hard money lenders. 

Build Your Business Credit 

If you decide to lease a vehicle in your company’s name—without relying on your personal credit score—you’ll need strong business credit. That means opening business tradelines in your company’s name that report to the major business credit bureaus. 

Unfortunately, this isn’t always easy when you’re first starting out. Traditional lenders may be reluctant to work with new business owners, so you’ll often have the most success with opening vendor tradelines. 

Vendor tradelines come from suppliers, often providing net 30 terms, meaning you have 30 days to pay your invoices. 

You can also use alternative credit-building tools like eCredable. We report your qualified ongoing business expenses to the credit bureaus, transforming them into additional vendor tradelines. 

As your business credit grows, you can start applying for financial tradelines, like business credit cards, lines of credit, and loans. 

These accounts tend to have a more significant impact on your credit score but are harder to qualify for. Most require a minimum time in business, established revenue, and an existing business credit history. 

No matter which type of tradeline you’re using, the key to building business credit is to make your payments early or on time. Payment history is the number one factor in most business credit scoring models. 

Get a Cosigner or Take Over Another Lease 

If your business isn’t ready to qualify for a lease on its own, you still have a couple of options: use a cosigner or take over someone else’s lease. 

A cosigner is someone who agrees to back your lease and take responsibility for lease payments if your business can’t make them. If they’re well qualified—with a good credit score and strong finances—lenders may be more likely to approve your application. 

However, cosigning is a significant favor that involves taking on real risk. If your business misses a lease payment, your cosigner’s personal credit score could take a hit in addition to them being forced to cover the debt.  

Another way to get a business vehicle without going through a traditional credit check is by taking over an existing lease. This is called a lease assumption or lease transfer. 

In many cases, when someone with a lease wants out of it early—maybe because they’re downsizing, relocating, or no longer need the vehicle— you can take over the remaining term without jumping through as many hoops as you would to get your own. 

Because you’re not initiating a brand-new lease, the credit requirements are often more flexible. Some lease takeover programs even skip the hard credit check entirely, depending on the leasing company and structure of the deal. 

Where to Get a Business Car Lease With No Credit Check 

1. CarsDirect 

CarsDirect is an online car-buying service that connects borrowers to dealerships and lenders across the country. It doesn’t provide funding itself, but it helps customers with poor credit or no credit find a viable financing option through its large network. 

If you're looking for a business car lease or auto loan with minimal credit requirements, CarsDirect can help you locate a car dealership more likely to approve your finance application, even if you don’t have a strong credit history. 

2. Auto Credit Express 

Auto Credit Express is another auto financing and leasing platform that can make sense for those who have a bad credit score, no credit, or even recent bankruptcies. 

After an online application that doesn’t involve a hard credit check, Auto Credit Express matches you with lenders and dealerships in its network who may be more likely to work with less qualified borrowers and lessees. 

3. My Autoloan 

My Autoloan is an online marketplace that offers access to multiple car financing options, including lease buyouts, traditional car loans, and leases. It caters to a wide range of credit profiles and helps users compare up to four offers at once. 

While lenders in its network may still check credit, the platform is known for including options for those with a low credit score. When applying through My Autoloan, you may find car loan and lease programs with more flexible approval criteria. 

Build Business Credit With eCredable 

eCredable’s Business Lift program can help you build business credit fast by reporting your recurring business expenses as vendor tradelines, including up to two years of unreported monthly payment history. 

Our clients see an average increase of 32 points in each relevant business credit score within the first three months. Get started with no credit check today. 

Best Business Auto Loans Without a Personal Guarantee 

Business auto loans are a great way to access the vehicles your operation needs. However, many lenders won’t let you have one unless you personally guarantee it. That isn’t necessarily the end of the world. But it’s a risk you may not be willing to take to secure a commercial vehicle loan.  

In that case, you’ll typically need to be in business for at least two years, have strong financials, and establish a good business credit score before you can qualify for business auto loans without a personal guarantee.  

Even then, you need to apply for unsecured business loans with the right lenders. Here are our recommendations.  

Best Business Auto Loans Without a Personal Guarantee 

In a previous post, we shared our top no PG business credit card options. In this article, we’ll review our favorite business auto loans without personal guarantee requirements. 

We based our best business auto loans on three key criteria.  

The first is obviously not requiring a personal guarantee. As we just mentioned, this is something that most business auto loans require. But in the case of these auto loans, this isn’t something you necessarily have to worry about to obtain business financing. 

Note that some lenders are more likely than others to offer business auto loans without a personal guarantee than others.  

For example, Ally and Ford, at the top of the list, have a strong likelihood of not requiring a personal guarantee. Lenders in the middle have a moderate likelihood. And those at the bottom, like Bank of America and Truist, have a lesser likelihood and may require a secured loan.  

But with each lender, you at least have a realistic chance of getting auto financing for a business vehicle without a personal guarantee.  

Second, these lenders offer a wide range of auto financing options. Most have plenty of flexibility, so you can choose the exact type of financing that fits your needs while improving your business credit history.  

Third, most of these lenders have what we would consider reasonable eligibility requirements for a business loan, making them realistic options for many business owners. By comparison, some other lenders are more stringent in their qualification criteria. 

With that said, here are our top eight picks:

1. Ally Bank 

2. Ford Pro™ FinSimple™ 

3. PNC 

4. Toyota Financial Services 

5. GM Financial 

6. Nissan Business & Fleet 

7. Bank of America 

8. Truist Bank 

1. Ally Bank 

Ally Bank offers a full suite of auto financing loan options. They can offer a personal auto loan, which is based largely on personal credit score. Check out their auto loan calculator for more details.  

They also offer a variety of business loans for commercial vehicles, including term loans, leases, and revolving lines of credit. Each account type has different vehicle eligibility requirements and repayment structures.  

Here’s how each of them works:  

• Retail Financing: These are traditional auto loans available to business owners looking to buy new, used, or certified pre-owned (CPO) vehicles with up to 10 years or 120K miles. Repayment terms can be up to 75 months.   
• SmartLease: This is a closed-end commercial lease that requires you to return your vehicle at the end of the term. It’s only available for select makes and models, and lease terms range from 12 to 60 months or 10K to 15K miles.  
• ComTRAC Lease: This is an open-end lease, which means you’re responsible for your vehicle’s residual value. It’s available for new and used passenger vehicles up to two years old, including passenger cars and light-duty or medium-duty trucks. Lease terms range from 12 to 72 months.  
• Commercial Line of Credit: This is a revolving line of credit aimed at customers who want to build a fleet. It’s a flexible source of funds you can use to finance, lease, or modify commercial vehicles, including passenger cars and light- or medium-duty trucks. The credit line is conditionally available for one year.  

Of all the lenders on this list, Ally Bank is arguably the most open to issuing business auto loans without a personal guarantee.   

However, your company will still need a couple of years in business, strong financials, and good business credit before you’re eligible for an unsecured loan. Note that Ally is a very versatile bank and also offers other forms of financing like an SBA loan and a merchant cash advance.  

2. Ford Pro™ FinSimple™ 

Like Ally Bank, Ford Pro™ FinSimple™ offers four distinct business auto financing arrangements, including traditional installment loans, open- and closed-end leases, and revolving lines of credit. Here’s how they work:  

• Commercial Vehicle Financing: This refers to Ford’s term loans for purchasing commercial vehicles. Accounts are available for new, used, and CPO vehicles, including everything from cars to heavy-duty trucks. The loan term can range from 12 to 84 months, with no early pay-off penalties.  
• CommerciaLease: This is an open-end Terminal Rental Adjustment Clause (TRAC) lease. You can use it to lease new, used, and CPO vehicles, including cars through heavy-duty trucks. You’re responsible for the vehicle’s residual value at the end of the lease term, which can range from 12 to 72 months.  
• Commercial Red Carpet Lease: This is Ford’s closed-end lease, for which only new vehicles are eligible. You’re not responsible for the residual value at the end of the term, but you are responsible for any excess wear and use.  
• Commercial Line of Credit: This is Ford’s revolving line of credit you can use to finance or lease commercial vehicles, including upfitted ones. There are no setup or non-usage charges, and the line stays open for one year, though you can renew for 6 or 12 additional months.  

Ford Pro™ FinSimple™ is another lender with a reputation for being more willing than most to issue a secured business loan without a personal guarantee. It’s also a great option if you need heavy-duty trucks, which other lenders won’t always finance.  

3.PNC 

PNC offers business auto loans with traditional installment schedules. You can use them to finance the purchase of new or used passenger vehicles that you drive for business purposes.  

PNC business auto loans can have repayment terms of up to 72 months, fixed rates, and principal balances between $10,000 and $250,000. In addition, you can finance up to 100% of your vehicle price, so you may not even need to make a down payment.  

PNC provides more information about the eligibility criteria for its business auto loans than most of its competitors. For example, here are some of the specific qualification requirements it shares publicly:  

• At least two years in business  
• 40% or lower debt-to-income ratio  

More generally, PNC considers factors like your business’s financial trends, debt service coverage, industry, and credit history. Your personal qualifications also matter, including your credit history and net worth.  

PNC has a reputation for being more likely to make business owners sign a personal guarantee than other lenders on this list.   

Your business may need exceptionally strong qualifications, including several years in business, top-tier business credit, and highly profitable operations to get an auto loan from PNC without one.  

4.Toyota Financial Services 

Toyota Financial Services offers business auto loans, limited lease options, and revolving lines of credit, typically for vehicles you purchase through a Toyota dealership. Here’s an overview of its financing options:  

• Finance plans: These are Toyota’s installment loans, which you can use to purchase new, used, and CPO Toyota vehicles, plus new and used non-Toyota vehicles. Seasonal payment plans and balloon financing arrangements may be available for certain vehicles in some states. Loan terms can be up to 84 months.  
• Business lease plan: Toyota offers closed-end leases for new and CPO Toyota vehicles only. When a lease ends, you can return your vehicle or buy it for its residual value. You’re responsible for any excess mileage and wear. Lease terms can be up to 60 months, and there are early termination charges.  
• Vehicle credit lines: Like many of its competitors, Toyota offers a revolving credit line you can use to acquire vehicles more efficiently. Your prequalification is good for 12 months.  

Eligible businesses are small to medium-sized and must be a legal entity (such as a corporation, limited partnership, general partnership, Limited Liability Company, or sole proprietorship) to qualify.  

5.GM Financial 

GM Financial is another auto lender that provides the full gamut of business auto loans, including traditional term loan accounts, open and closed-end leases, and revolving lines of credit. Here’s what you should know about them:  

• Commercial purchase financing: This refers to GM Financial’s traditional APR program you can use to purchase new or pre-owned Chevrolet, Buick, GMC, and Cadillac vehicles. Commercial vehicle loan terms usually stop at 72 months, but they can be as long as 84 months.   
• Open-end leases: These let you choose your residual value and lease term. Terms can range from 24 to 60 months. There are no mileage restrictions or excess wear-and-use charges, and GAP coverage is included. Medium-duty trucks are eligible.  
• Closed-end leases: These are GM Financial’s lease options for predictable-use Chevrolet, Buick, GMC, and Cadillac vehicles. You’re not responsible for the residual value, but you are on the hook for any excess wear-and-use charges.  
• Commercial lines of credit: GM Financial’s revolving credit line limits start at $350,000 and are reviewed annually. As usual, these accounts are designed to help you grow a fleet without having to go through a credit approval process for each additional vehicle.  

GM Financial confirms that personal guarantees are optional, at least for leases, so it may be a good option if you like Chevrolet, Buick, GMC, or Cadillac vehicles. 

6.Nissan Business & Fleet 

Nissan Business & Fleet is another car dealer financing arm. Like most of its peers, it provides traditional business auto loans and leases, plus a revolving line of credit you can use to streamline the growth of a fleet.  

Here’s what you should know about each arrangement:  

• Purchase financing: Nissan recommends buying vehicles if you plan to keep your fleet for more than four years. You can apply for a small business loan and revolving credit line simultaneously via the NMAC credit application. Down payments are negotiable.  
• Signature FLEX Lease: This is Nissan’s closed-end, walk-away lease for small business owners who want a new vehicle every two to three years. You’re not responsible for the residual value, but you do have to pay for excess wear. You can drive between 5K and 15K miles per year.  
• TRAC Lease: This is Nissan’s open-end lease for those who want the option to buy their vehicle at the end of the lease term. You can also drive as many miles as you want.  
• NMAC Line of Credit: Nissan’s revolving credit line carries no administrative or retention fees. You can qualify for a pre-approved credit limit each year.  

Nissan states that personal guarantees from officers and business owners are negotiable. If your business’s credit and financial qualifications meet its requirements, you may be able to avoid signing one.  

7.Bank of America 

Bank of America offers several financing arrangements for business vehicles, but its primary product is the Business Advantage Auto Loan. It’s a traditional installment account designed to help you purchase or refinance cars, vans, and light trucks.  

Here are the eligibility requirements:  

• At least two years in business  
• Minimum vehicle value of $10,000  
• Maximum vehicle age of five years  
• Less than 75K miles driven  

The Business Advantage Auto Loan comes with a 30-day rate lock guarantee, which makes it a great option to start off your search for financing. That feature gives you plenty of time to shop around and compare with other lenders like a credit union.  

To buy a commercial vehicle that weighs more than 2.5 tons, you must use a Bank of America Equipment Loan instead. The minimum secured loan amount starts at $25,000, and terms can be up to five years.  

To qualify, you need two years in business and at least $250,000 in gross annual revenue. Bank of America also offers closed-end and open-end leases for heavy-duty commercial vehicles.  

Bank of America typically requires a personal guarantee for business auto loans, but you may be able to avoid it if your business is sufficiently qualified.   

Even if you do sign, Bank of America won’t report the account to the consumer credit bureaus unless you default. Otherwise, it just reports to the Small Business Financial Exchange (SBFE).  

8.Truist Bank 

Bank of America offers several financing arrangements for business vehicles, but its primary product is the Business Advantage Auto Loan. It’s a traditional installment account designed to help you purchase or refinance cars, vans, and light trucks.  

Here are the eligibility requirements:  

• At least two years in business  
• Minimum vehicle value of $10,000  
• Maximum vehicle age of five years  
• Less than 75K miles driven  

The Business Advantage Auto Loan comes with a 30-day rate lock guarantee, which makes it a great option to start off your search for financing. That feature gives you plenty of time to shop around and compare with other lenders like a credit union.  

To buy a commercial vehicle that weighs more than 2.5 tons, you must use a Bank of America Equipment Loan instead. The minimum secured loan amount starts at $25,000, and terms can be up to five years.  

To qualify, you need two years in business and at least $250,000 in gross annual revenue. Bank of America also offers closed-end and open-end leases for heavy-duty commercial vehicles.  

Bank of America typically requires a personal guarantee for business auto loans, but you may be able to avoid it if your business is sufficiently qualified.   

Even if you do sign, Bank of America won’t report the account to the consumer credit bureaus unless you default. Otherwise, it just reports to the Small Business Financial Exchange (SBFE).  

A Side-by-Side Comparison of Each Business Auto Loan 

Ally Bank 

Likelihood of not requiring a PG: Higher 

Minimum years in business: 2 years 

Business credit required: Strong  

Types of financing: Retail, SmartLease, ComTRAC, and commercial lines of credit 

Ford Pro™ FinSimple™  

Likelihood of not requiring a PG: Higher 

Minimum years in business: 3 years 

Business credit required: Good 

Types of financing: Commercial Vehicle Financing, Commercial Lease, Commercial Red Carpet Lease, and commercial lines of credit 

PNC  

Likelihood of not requiring a PG: Moderate 

Minimum years in business: 2 years 

Business credit required: Exceptional 

Types of financing: Traditional term loans 

Toyota Financial Services  

Likelihood of not requiring a PG: Moderate 

Minimum years in business: 3 years 

Business credit required: Good 

Types of financing: Installment loans, business plan leases, and vehicle credit lines 

GM Financial  

Likelihood of not requiring a PG: Moderate 

Minimum years in business: 3 years 

Business credit required: Strong 

Types of financing: Commercial purchase financing, open-end leases, closed-end leases, and commercial lines of credit 

Nissan Business & Fleet  

Likelihood of not requiring a PG: Moderate 

Minimum years in business: 3 years 

Business credit required: Strong 

Types of financing: Signature FLEX lease, TRAC Lease, and NMAC Line of Credit 

Bank of America  

Likelihood of not requiring a PG: Lower, but still possible with a high business credit score 

Minimum years in business: 2 years 

Business credit required: Strong 

Types of financing: Business Advantage Auto Loan and Bank of America Equipment Loan 

Truist Bank  

Likelihood of not requiring a PG: Lower, but still possible with a high business credit score 

Minimum years in business: 3 years 

Business credit required: Good 

Types of financing: Traditional term loans 

Advice When Seeking No Personal Guarantee Financing 

Now that we have a clear overview of no PG business auto loan lenders, let’s discuss the strategy behind increasing your odds of being approved.  

For starters, you’ll want to strengthen your business credit score. If you noticed in the side-by-side comparison of auto loan lenders, all require a business owner to have at least good credit when applying, with some requiring strong or even excellent business credit.  

To quantify, you’ll usually need a minimum:  

• D&B PAYDEX score of 80 

• Experian Intelliscore of 76 

• Equifax Business score of 90 

If you don’t currently have that, you’ll need to take steps to improve your business credit score.  

Here are some ideas: 

• Get an EIN and DUNS number 

• Create a separate bank account 

• Open at least five business tradelines from vendors who report to at least one major business credit bureau 

• Open business credit cards, also from lenders who report to at least one major business credit bureau 

• Use eCredable to turn business bills into tradelines (more on this later) 

• Always make payments on time or in advance 

Next, wait until you’ve been in business for at least two years before applying for a business auto loan. That tends to be the bare minimum. Just note that some lenders require three years of operation to be eligible.  

Third, be sure that you have strong cash flow and that your business has been profitable for at least two years. This is something lenders want to see.  

Finally, we suggest first applying for an auto loan that’s reasonably easy to obtain without a personal guarantee. Again, Ally and Ford have the highest likelihood of approval of the lenders on this list. Then, as you build your business credit and prove yourself trustworthy, you can look into other options later on.  

How eCredable Can Help You Build Credit so You Don’t Need a Personal Guarantee  

If you have good personal credit, signing a personal guarantee can help you qualify for a business vehicle loan you wouldn’t have gotten otherwise. However, it increases your risks significantly, allowing creditors to pursue your assets if your business defaults.  

The only way to get any business line of credit with no personal guarantee is to establish your business credit. Once your company is qualified enough to secure accounts on its own, you won’t need to risk your personal credit or finances.  

Building business credit traditionally involves opening a dozen vendor tradelines, but that requires a significant investment of time and capital.   

That’s where eCredable comes in. With our Business Lift program, you can transform your business’s recurring monthly expenses into vendor tradelines and report up to 24 months of payment history.   

That can add years of history to your business credit report virtually overnight, making it more efficient than a business credit builder loan.  

We’ll even report your eCredable monthly payment, which can increase your business credit scores by up to 40% in the first three months. Sign up for eCredable today and take the shortcut to better business credit.  

Shelf Corporations: The Purpose and Risks

Building business credit is incredibly important for new companies because it impacts your ability to obtain financing, favorable loan terms, and low interest rates.  

Rather than building credit organically, some business owners try to cut corners by buying a shelf corporation (also known as a shelf company).  

In this post, we’ll discuss the fundamentals of shelf corporations, along with the risks, legalities, costs, and more. As we’ll explore later, shelf corporations are risky, potentially fraudulent, and not a recommended practice for building established credit. 

We’ll show you a better alternative. It’s one that adds aged business tradelines quickly for a low cost, and it’s 100% legal.  

What is the Purpose of a Shelf Corporation?

The reason for buying a shelf corporation is to obtain a business credit history without building it from scratch.  

By purchasing an aged shelf company that has had time to mature, it essentially gives you instant credibility, making it easier to apply for business lines of credit or other business financing.  

Just as having an extensive personal credit history increases your chances of getting approved for consumer credit cards and loans, it’s the same concept with shelf corporations.  

Even if an aged shelf company hasn’t had any business activity or any real bank account assets, the time an existing business has spent “on the shelf” makes it appear more well-established, which is an integral part of getting funding and other business services.  

And as FundsNet points out, “Most states require that your company be in business for a specific period of time before applying for government contracts or government contract bidding.” 

In short, an aged shelf corporation has more perceived value than a brand-new one, which enhances business credibility. It also gives it more leverage for securing business financing, all while bypassing the heavy lifting that comes with building credit as a small business owner.  

Risks of Using a Shelf Corporation

At first glance, shelf corporations may seem enticing. But, there are some serious drawbacks to be aware of when purchasing this business entity.

High Cost

For starters, you’ll have to spend a considerable amount of money to purchase a shelf company trade name.  

The exact costs can vary. (As we’ll discuss in more detail later, it’s thousands of dollars.) But regardless of the registered agent you go through, a shelf corp is going to be a significant expense.  

If you’re a new business owner just trying to get established, this can be a hindrance to company formation and make it harder to gain financial momentum when growing your business bank account.  

Hidden Liabilities

In most cases, whenever you buy shelf corporations, they won’t have any assets or liabilities.

But this isn’t always the case.

While uncommon, there have been instances where someone buys an aged shelf company from a fraudulent vendor where the company has a history of unlawful activities, liabilities, and lawsuits.

If you happen to buy an aged corporation with a history like this, there is no asset protection, and it’s your responsibility to resolve the issues. So if there’s negative history attached to an aged shelf company, it can open a can of worms that you don’t want to deal with.

Prospective Lenders May Catch On

The main reason why most business owners buy shelf corporations is to leverage the credit history and the company name to obtain financing.  

But this is highly deceptive and something most lenders are wary of.  

If a prospective financial institution discovers that you’ve bought a wholesale shelf corporation with the intention of using it for this purpose, two things will likely happen.  

First, they’ll close your business bank account and you’ll lose access to the funds you would have had.  

Second, they’ll ban you from applying for future working capital and may notify other financial institutions of the situation.  

So, if your primary purpose of buying a shelf corporation is to “corporate credit hack” and manipulate the system, it can easily backfire and hurt you rather than help you.  

Legal Risk

Besides creating friction with lenders, there’s also a significant legal risk involved.

“If you buy a shelf corporation with the intent of using it to secure business loans or lines of credit that you would have otherwise not been qualified for, this could be considered crossing the line and could be considered illegal,” FundsNet explains.

The problem is that this is often precisely what business owners are trying to do when buying a shelf corporation business entity.

While this doesn’t directly go against the Corporate Transparency Act, and there’s no guarantee that a lawsuit will arise, it can certainly be a threat to your corporate longevity, and it’s not a risk you want to take.

Are Shelf Corporations Legal?

The simple answer is yes. Shelf companies are legal.  

However, most financial experts consider them to exist in a legal gray area, where they can be illegal if they’re used to gain corporate credit the wrong way.  

If, for example, you buy a shelf corporation to use it to manipulate the credit system and obtain financing that you wouldn’t otherwise be able to get, it’s considered fraudulent.  

And as we just mentioned, this is often the primary reason why business owners purchase a shelf company in the first place.  

The bottom line is that shelf corporations are technically legal. But they become illegal when they’re used to deceive lenders and unscrupulously obtain credit lines.  

Also, note that since the publishing of The Panama Papers in 2016, which leaked 11.5 million documents, the terms “shelf company”, “shell company”, or “shell corporation” have been associated with illicit activities like fraud, money laundering, and tax evasion. 

For these reasons, aged shelf corporations are something we strongly recommend not getting involved with, even if it’s with a registered agent offering a seemingly respectable shelf LLC.  

How Much Does a Shelf Corporation Cost?

Earlier, we mentioned there’s often a high cost when buying shelf companies.

In terms of the specific amount, purchasing this type of business entity typically ranges from $645 on the low end to upwards of $10,000 on the high end.

If you look at a current list of aged corporations that are up for sale from Wyoming Corporate Services, a limited liability company, the lowest is $645 and the highest is $9,795.

Again, the cost of an aged corporation can vary, and another source like a Super Pages listing may be slightly different. But this is about the range in 2025.

Should You Get a Corporation in Wyoming or Delaware?

When you’re interested in purchasing a shelf corporation, you have a myriad of options.

You could get a ready-made corporation for your Nevada corporation, LLC, or S corporation status.

You could get aged shelf companies like a California shelf company. California corporations might work for some, but a California shelf corporation isn’t for every business.

Then, you still have to take care of other things like hiring a registered agent service. Incorporation requires a great deal of work, even when purchasing a shelf company.

Two options worth considering are a Delaware shelf corporation and a Wyoming shelf corporation.

But which state should you choose when shopping for an aged company? A Delaware corporation or an older Wyoming corporation?

Both offer significant tax benefits, are corporation-friendly, and you can move a corporation from one state to the other.

That being said, incorporation in Delaware is more costly. If you want to purchase a Delaware shelf company, you should expect to pay more for these shelf corps. 

Greater credibility comes at the price of:

Corporate Income Tax Rate: 8.7 percent versus 0 percent in Wyoming.

Annual State Fee: $225 annually versus $50 annually in Wyoming.

Incorporation Conversion Filing Cost: $800 to $1,000 versus $500 in Wyoming.

Take care to weigh the pros and cons before committing to one state’s shelf company options to improve your business’s credibility.

How You Should Establish Business Credit Instead

By now, it’s pretty clear that shelf corporations generally aren’t a smart move for a new company looking to build corporate credit.  

So how can you responsibly establish business credit without going through an aged entity? 

One of the best ways is to use eCredable, which helps you build business credit by reporting your business utility and telecom payments. 

It works by linking the business accounts you pay anyway, such as electricity, internet, water, gas, and TV, and reporting your payments to the credit bureaus.  

By making payments on time, you can use these accounts to build your business credit in a way that’s similar to reporting credit card payments.  

And when it comes to personal credit, this isn’t something eCredable looks at. So, even if your personal credit isn’t great, it won’t hinder your ability to build your business credit profile.   

Once you sign up with eCredable Business Lift, we’ll attempt to download up to 24 months of payment history, which can quickly boost your business credit scores.  

You can learn more about eCredable Business Lift pricing and get started here. 

 

 

 

 

 

 

What Are Net 30 Payment Terms & Accounts?

Net 30 accounts are a type of credit account that vendors issue, which grants you extended payment terms at their store. They’re also one of the best tools new business owners have for generating cash flow and establishing their business credit when starting from scratch.  

Here’s what you should know about net 30 accounts, including how they work with payment terms, their pros and cons, and how they compare to other types of business credit.  

How Do Net 30 Accounts Work?  

You probably have a rough idea of what this concept entails, but what exactly does net 30 mean? 

As the name implies, net 30 accounts offer 30 days of interest-free financing. The credit term starts the day you make your purchase with the credit line. If you don’t pay off your invoice balance before the period expires, you may be subject to late payment fees or interest. 

But as long as you’re on time with payments or make an early payment, you can use net 30 terms to generate cash flow while simultaneously raising your business credit score. It’s much like using a personal credit card responsibly to raise your personal credit score.  

Net 30 accounts are vendor tradelines or trade credit accounts. You get them from companies that don’t specialize in issuing credit, such as an office supply company. They’re also only usable with the issuer, unlike a credit card accepted by all merchants.  

That limits their ability to manage your cash flow, though they’re still beneficial if you get them with the right vendors. However, the main purpose of net 30 accounts is often to build credit, as net 30 terms on an invoice usually get reported to one or more of the business credit bureaus.  

For example, say you shop at Uline weekly for shipping materials, so you apply for a net 30 billing. Once you qualify, you use it to delay paying for each purchase until four weeks later, improving your cash flow.  

In addition, Uline reports your business account trade credit and invoice payment activities to Dun & Bradstreet (D&B) and Experian Business, building business credit in each of those credit reports. Note that Uline has some of the best customer service among trade credit vendors.  

Reporting each net 30 payment is integral for establishing creditworthiness with business credit bureaus.  

When it comes to D&B, Nav explains that “each supplier or vendor that reports payment history is considered a business tradeline account, and the payments you make to that supplier or vendor are considered a payment experience. According to Dun & Bradstreet, two tradelines with at least three trade experiences are needed for a D&B PAYDEX Score.” This was confirmed on April 7, 2025. 

Net 30 Accounts vs. Net 30 Vendors  

The terms “net 30 account” and “net 30 vendor” are closely related, but they’re not interchangeable, so you don’t want to mix them up.  

A net 30 vendor account refers to a credit line that grants you a 30-day payment term with no interest on your outstanding balance. Meanwhile, a net 30 vendor is a business that offers net 30 accounts and usually specializes in something other than issuing credit.  

For example, Crown Office Supplies is a popular net 30 account. It offers net 30 payment terms to qualified customers, granting them extended net payment terms. However, it generates most of its revenue by selling office supplies, its primary product offering.  

Pros and Cons of Net 30 Accounts  

Net 30 terms can be a good tool for new small business owners, but they’re not right for everyone. Here’s what you should know about their most significant pros and cons of this invoice arrangement.  

Pros  

Generally, a net 30 account is most beneficial for new business owners who are looking to build business credit and generate cash flow. That’s primarily due to the following advantages:  

Accessible: Convincing lenders to give you invoice financing without any credit history is notoriously challenging. However, you can often secure a net 30 account as long as you don’t have any late payments or defaults, making net 30 terms a good starter credit account for business owners while also boosting cash flow.  

Interest-free: A Net 30 account offers the shortest interest-free payment terms among vendor tradelines, but that doesn’t mean it’s not beneficial. After all, net 30 payment without interest accruing on your invoice balances is as much as a business credit card.  

Build business credit: Many vendors report a net 30 account to one or more of the business credit bureaus. With a few of their vendor tradelines in your credit reports, you should be able to generate a business credit score and establish the foundation you need for good business credit while also boosting cash flow. You just need to be on time with payments or make an early payment here and there.  

These characteristics make a net 30 account ideal for those who don’t have business credit and want to change that. However, net 30 terms isn’t always attractive for those who need a long-term financing arrangement.  

Cons  

Net 30 accounts offer significant benefits for new business owners who are just starting to build business credit, but they’re not perfect. Not only are net 30 terms on invoice payments of limited use in other situations, but they also have their drawbacks as credit-building tools.  

Here are their most significant cons:  

Potentially expensive: Net 30 terms often charge you an application fee and a recurring membership fee to maintain 30-day payment terms on your account. Since you need several to establish a solid credit foundation, they can add up quickly.  

May require personal guarantee: Net 30 accounts are often available to new business owners, but they may require you to sign a personal guarantee if you lack business credit history. If you default on an invoice or make late payments, that allows the issuing vendor to come after your personal assets and your personal credit may suffer.  

Limited vendor options: Unfortunately, there’s a relatively limited list of vendors with net 30 payment terms, which often forces businesses to get net 30 accounts from businesses that don’t sell something they need. As a result, you might waste money on unnecessary goods or services just to build business credit with net 30 terms. 

Fortunately, you can get around the downsides of net 30 accounts by signing up for a program like eCredable Business Lift. We’ll report your existing expenses to the business credit bureaus for you, transforming them into vendor tradelines.  

How Do Net 30 Accounts Compare to Business Loans and Credit Cards?  

Like business loans and credit cards, net 30 accounts are financing arrangements. However, they generally don’t serve the same purposes in your credit mix, as there are significant differences between the two.  

Here are the primary ones to be aware of:  

• Qualification requirements: Generally, net 30 accounts are much easier to qualify for than a business loan and credit card. Many of them open even to new business owners with no business credit history, while you usually need to be well established to qualify for a business loan and credit card, or at least sign a personal guarantee.   
• Where you can use them: As vendor tradelines, you can only use net 30 accounts to purchase goods or services from the company that issues them. In contrast, you can use a business loan and credit card to buy from anyone (unless otherwise stated).  
• Financing structure: Net 30 accounts are a revolving form of credit, which means you can use them, pay off your balance, and use them again, like a credit card. Business loans are installment accounts, which require you to make multiple payments of principal and interest over time.  
• Maximum credit limits: Net 30 accounts tend to have relatively low credit limits for business credit accounts, often starting around $1,000. Meanwhile, a business credit card may start at around $10,000, and a business loan can have principal balances in the millions.  

There are significant differences between net 30 accounts and a business loan and credit card, but that’s not really a criticism against any of them. They serve vastly different purposes in your credit account mix.  

Net 30 Accounts Build Business Credit  

Net 30 accounts give you 30 days of interest-free financing. Ideally, you should get them from vendors you already want to do business with. That way, the account helps improve your cash flow rather than give you an extra monthly expense.  

That said, the primary purpose of a net 30 account is almost always to help new business owners start building business credit. Once you’ve established a positive payment history with them, you can start applying for more beneficial credit accounts.  

Net 30 vendors know this, and many of them offer net 30 payment terms primarily as a way to boost revenue. As a result, you may need to complete an order that meets a minimum dollar value to get your net 30 accounts reported to a business credit bureau.  

Quill Office Supplies, for example, requires that a business owner make a $100 minimum purchase to be eligible for a net 30 term. On the other hand, a similar company, Crown Office Supplies, only has a $30 minimum purchase.  

Note, however, that some brands, like shipping supplies company Uline, have no minimum purchase, so you can take advantage of net 30 terms on any order size.  

The specifics will vary, so you’ll want to become fully familiar with the minimum purchase order, as well as other terms and conditions when deciding which net 30 vendors to buy from. 

What Net 30 Accounts Should I Consider as a New Business? 

Net 30 accounts tend to have similar characteristics, but there can still be meaningful differences between them. As a new business owner, you should prioritize those that meet the following criteria:  

• Open to new businesses: Net 30 accounts are often available to businesses with little to no business credit history. However, some net 30 vendors only issue credit to businesses that already have a positive payment history with several other vendor tradelines. Double-check before you apply.  
• Report to multiple credit bureaus: Since you probably want net 30 accounts primarily to build business credit, you want to pursue ones that report to as many of the major business credit bureaus as possible. Those include D&B, Experian Business, and Equifax Business.  
• Issued by a vendor with a practical offering: To build business credit with a net 30 account, you need to use it regularly and establish a payment history. To avoid wasting money on unnecessary goods or services, you should target net 30 vendors that offer something you already need.  

Though somewhat less important than the characteristics mentioned above, it’s also best to open net 30 accounts that don’t charge application or membership fees. These can get burdensome since you need multiple vendor tradelines to build credit.  

Here are some real-life examples: 

The CEO Creative (Apparel, Office Supplies, and Electronics) 

• Requirements: Must be US-based, have been in business for at least 30 days, and have a clean history 

• Reports to: D&B, Equifax Business, Creditsafe 

• Minimum order: $40 

• Typical credit limit: Doesn’t state 

• Fees: $49 annual membership fee 

Staples 

• Requirements: Must have at least 20 employees, have been in business for at least one year, and have an EIN and DUNS number 

• Reports to: D&B 

• Minimum order: Doesn’t state 

• Typical credit limit: $1,000 

• Fees: None 

Newegg Business (Electronics) 

• Requirements: You have to be the primary account holder to apply 

• Reports to: None 

• Minimum order: None 

• Typical limit: Doesn’t state 

• Fees: None 

Creative Analytics (Digital Marketing) 

• Requirements: Must be US-based, have been in business for at least 30 days, have an EIN and DUNS number 

• Reports to: D&B, Experian Business, and Equifax Business 

• Minimum order: Doesn’t state 

• Typical limit: $1,000 for a basic account and $5,000 for a more robust plan 

• Fees: $49 or $79 annual fee, depending on the plan 

Office Garner (Business Supplies) 

• Requirements: Must have been around for a minimum of 30 days, have an EIN, and a clean business history 

• Reports to: Equifax Business and Creditsafe 

• Minimum order: $45 

• Typical limit: $1,500 

• Fees: $79 annual fee 

Common Reasons for Net 30 Application Denials 

Ideally, every vendor you applied with would accept your application and offer you net 30 terms to help improve your business credit and boost cash flow. Unfortunately, it doesn’t always work out that way.  

Some vendors are more stringent with their eligibility requirements, while others are more lax.  

Going back to our previous examples, Staples requires a business to have at least 20 employees, have an EIN and DUNS number, and have been operating for one year. However, The CEO Creative and Business T Shirt Club are far les strict and only require a business to be located in the US, have a clean history with no late payments, and have been around for just one month. 

With that said, here are some common reasons for net 30 application denials.  

• You lack the business history length a vendor requires 

• You lack a clean business history 

• You don’t have a business bank account or EIN 

• You don’t have an adequate business presence, such as comprehensive business contact information or a professional website 

• You’re operating in a high-risk industry 

Fortunately, there are several workarounds: 

• Target vendors with lower qualification thresholds initially and then branch out to others as you build creditworthiness 

• Pinpoint the exact reason why you were denied and focus on fixing it (e.g., you didn’t have a DUNS number) 

• Build your business presence by revamping your website and beefing up your business contact information 

• Seek a business credit card to start building your business credit 

• Always make a timely payment on each invoice and all other business expenses  

• Practice smart cash flow management 

Step-by-Step Guidance for Implementing a Net 30 Credit-Building Strategy 

Now that we know how net 30 accounts work and how to build business credit with them, let’s discuss a practical, step-by-step strategy you can use to accelerate your business credit-building.  

Here’s what the implementation timeline looks like: 

 

1. Prepare: Be sure to get an EIN, set up a business bank account, and ensure you have dedicated business contact information. 

2. Perform a Business Credit Profile Check: See what your existing business credit profile looks like to determine how much improvement needs to be made.  

3. Find vendors: Identify at least five net 30 vendors that sell relevant products that your business realistically needs (pay close attention to the business credit bureaus they report to and the minimum purchase amount). 

4. Put in applications: Apply with the vendors you’ve selected. 

5. Make first purchases: Buy products from the vendors you’re approved for, ensuring you meet the minimum purchase amount for each vendor. 

6. Pay invoices: Pay all invoices 5-7 days before the due date, as paying early can help improve your business credit score.  

7. Expand: Secure tradelines with additional vendors over time, and increase purchase amounts when possible. 

What Are the Alternatives to Net 30 Terms?  

Net 30 accounts aren’t the only extended payment arrangements that vendors offer. Once you establish a positive payment history with enough of them, you can start qualifying for net 45, net 60, and even net 90 payment terms.  

As you can guess, these give you even longer payment terms before interest starts to accrue. They also tend to have additional benefits, such as an early payment discount.  

Financial tradelines, like a business loan and credit card, are also great alternatives. These build business credit, but qualifying for them is usually why you do so in the first place. They’re powerful financing arrangements that can help you grow your business.  

If you’re looking for a way to build business credit as a new business owner besides net terms, one of the best options is an expense reporting program like eCredable Business Lift.  

When you sign up and connect your existing expense accounts, we report them to the business credit bureaus as vendor credit. That way, you build credit without having to pay for additional goods or services you might not even need.  

In addition, eCredable reports up to 24 months of payment history for each account, helping you add years of credit history to your business credit report virtually overnight. That’s one of the only ways to rapidly boost your business credit score.  

Instead of paying for a dozen new vendor tradelines, you only have to pay a single $19.95 monthly subscription. Fortunately, we’ll also report that payment to the credit bureaus. Sign up for eCredable today and take the shortcut to good business credit!  

FAQs 

How Do You Qualify for Net 30?  

Net 30 accounts are generally the easiest vendor tradelines to secure. They’re often available to new business owners with little to no business credit history. However, you should have no delinquencies or defaults and may need to sign a personal guarantee.  

How Many Net 30 Accounts Should I Have?  

Three to five net 30 accounts in a business credit report should be enough for you to generate a business credit score. However, you may need around 12 to 15 to qualify for the most competitive vendor and financial tradelines.  

What Is a Tier 1 Net 30 Account?  

Vendor tradelines are often separated into four tiers, indicating their relative levels of accessibility and credit benefits. Tier 1 net 30 accounts are the most accessible and offer the least beneficial credit terms. 

Getting a Capital One Business Credit Card Without EIN

First and foremost, keep in mind that Capital One business credit cards, like most business credit cards, typically require a personal credit check during the application process.  

That said, there are situations where a personal credit check may not be required. Instead, the application keys off the business’s employer identification number (EIN) and, therefore, the business’s data, not the consumer’s.   

But is there a Capital One Business credit card EIN only? 

Capital One does have the option to obtain certain business credit cards with just an EIN if you have the right business criteria.  

Furthermore, in a previous post, we discussed how to build business credit without using personal credit - How to Build Business Credit Without Using Personal Credit.   

Capital One Business Credit Cards Report to the Personal Credit Bureaus and Business Credit Bureaus  

Capital One typically reports business credit card activity to both the consumer and credit bureaus.    

Regarding the consumer credit bureaus, Capital One, similar to other large lenders, reports to all three  – Equifax, Experian, and TransUnion.    

In addition, Capital One may pull your personal credit history from one or more of the consumer credit bureaus during the application process.   

So do not be surprised if your activity is reflected both as an inquiry and as a tradeline in all of the consumer bureaus.    

As a result, you may be concerned that your bad personal credit may impact your ability to get a business credit card. In a previous article, we discussed How to Build Business Credit with Bad Personal Credit. You can find some answers there.  

Capital One business credit card data is reported to all of the major credit bureaus - Dun & Bradstreet, Equifax, and Experian. It’s important to be aware that if you miss a payment Capital One will report this to both the personal and credit bureaus.  

To start improving your business credit, a good rule of thumb is to always pay at least the required amounts by the payment due date. But an even better word of advice is to pay off your balance in full every month so that you avoid interest charges.  

Both options will ensure that no negative payment history gets reported. 

Capital One Business Credit Card Qualifications 

1. Venture X Business  

• Business EIN 

• Personal SSN 

• Annual business cash flow information 

• Personal credit score (typically 740+) 

• Business operating history of at least two years 

2. Spark 2 Cash Plus 

• Business EIN 

• Personal SSN 

• Annual business cash flow information 

• Personal credit score (typically 740+) 

• Business operating history of at least two years for this Capital One Spark Cash card 

3. Spark 2X Miles 

• Business EIN for this Capital One Spark Miles card 

• Personal SSN 

• Annual business cash information 

• Personal credit score (typically 700+) 

• Business operating history of at least one year is needed for this Capital One Travel card 

4. Spark 1% Classic 

• Business EIN 

• Personal SSN 

• Annual business cash flow information 

• Personal credit score (typically 580-669) 

• Business operating history is ideal for Capital One Spark Classic, but not necessarily required 

When it comes to reporting, Capital One's Business Card Agreement explains the details.  

“Late payments, missed payments, or other defaults on your account may be reflected on your personal credit report. Further, several items may be reflected on your business credit report, such as statement balance, late payments, missed payments, or other defaults.” 

How to Get Business Credit Cards with EIN Only 

As discussed earlier, seeking out what is generally referred to as a corporate card or business card is the best way to get business credit cards with an EIN only. 

Although you may still be required to provide your SSN, you are relying solely on your EIN to demonstrate creditworthiness. Certain factors are generally in common across issuers, including:   

1. Having an EIN: Just like a Social Security Number (SSN) is your individual taxpayer identification number and is critical to your identity, an EIN is essential for your business identity. Your business’s EIN is critical to not only defining and building your business identity but also to creating separation between your personal and business identities.  Your EIN and the strength of your business credit may help you avoid a personal guarantee and/or reliance on your personal credit score.   
2. Being recognized by the Business Credit Bureaus: Different lenders use data from different business credit bureaus. Each may have a different view of your business credit, but to be safe, you will want to make sure that all the credit bureaus -- Dun & Bradstreet, Equifax Business, and Experian Business -- all recognize your business as a legitimate business entity.  
3. Having (Good) Business Credit: Being recognized by the business credit bureaus is not necessarily enough, your business needs to have a positive credit history at all of the credit bureaus. Working with vendors and other lenders that report data to the business credit bureaus is a common way to build better business credit.  Remember to pay on time and in full! However, there are ways you might be able to build business credit in 30 days. 

EIN Only Business Credit Cards That Don't Report to the Personal Credit Bureaus 

While most business credit cards require good personal credit and, perhaps, a personal guarantee when you apply, not all business credit cards will report the credit history to the consumer credit bureaus.   

One key advantage to not having your data reported to the consumer credit bureaus is that it creates further separation between your personal credit and your small business credit.   

Remember that as your small business continues to grow and mature, a primary goal is to completely sever the tie between your personal credit and your small business credit.   

As discussed earlier, you may be required to provide your SSN for Know Your Customer laws.  

If you can manage to obtain a business credit card that only requires your EIN, then that card will not report missed payments to the personal credit bureaus. This is a big plus! Here is a list of credit cards that can be obtained with an EIN. 

1. American Express Cards 

 

American Express offers several business credit cards and corporate cards that each offer a variety of benefits, rewards, and terms.    

Larger organizations may go with a corporate card, but most small business owners usually opt for a regular business credit card.    

You just need to determine what is most appealing to your small business among the annual fees, cash back options, rewards, travel perks, and other benefits.    

All American Express cards come with standard tools for tracking and managing small business expenses efficiently.   

While the annual fee, benefits, and eligibility requirements may differ for different business cards, there is most likely a business card that fits your needs and reports to the credit bureaus.   

According to WalletHub, in most cases, American Express won’t report business credit card activity to personal credit bureaus, unless there’s a negative payment or severe delinquency. As long as you maintain a positive payment history, nothing should be reported to personal bureaus. 

2. Bank of America Cards  

 

Bank of America offers several business credit card options but does not offer a corporate card alternative.    

While the cards may require a personal guarantee and rely heavily on the small business owner, there is usually no annual fee and a variety of cash rewards from which to choose. And if you’d like to open a business checking or business savings account, you can easily do it with Bank of America.  

When it comes to credit reporting, WalletHub states that Bank of America doesn’t report to personal credit bureaus, period. This means that whether your payment history is positive or negative, nothing will be reported to personal bureaus.  

In turn, your personal finances won’t be affected, and it won’t impact your ability to get a personal credit card, a cash advance, and so on. And if you miss a payment, it won’t affect your ability to still get a sizable credit limit on a personal credit card or large personal loan amount.  

3. Chase Cards 

 

Chase offers a variety of Ink® business credit cards for you to identify the best business credit card for your credit requirements.    

While these business credit cards have an annual fee and rely on a personal guarantee from the company owner, they are associated with the business.    

Each card will be issued to an individual employee, but the owner is ultimately responsible for the card.    

While each business credit card has different rewards, terms, and pricing, overall, there is a focus on cash back rewards. For example, the Chase Ink Business Cash Credit Card has 5 cash on office supplies, internet, and phone services and unlimited 2 cash gas stations and restaurants.  

If your business needs credit to grow, but you are looking to leverage these business expenses into cash back to grow your business, then one of these business cards may be a great option.   

As for reporting, Chase is similar to American Express in that it won’t report payment information to personal credit bureaus unless it’s negative or there’s a severe delinquency — something that’s confirmed by WalletHub. 

4. Citi Cards 

 

Citi business credit cards provide options for cash back or travel rewards.    

These business credit cards help business owners manage their finances more effectively creating a distinction between business and personal expenses.    

In addition, the Costco Anywhere Visa ® Business Card by Citi is designed exclusively for Costco members. You can earn cash back rewards anywhere and if you are a frequent Costco shopper, this could be the ideal business credit card for your business.   

Just like the Capital on Tap Business Credit Card, you can get employee cards (authorized user cards) for your employees, you can rapidly earn rewards on all of your small business expenses.    

Like Bank of America, Citi won’t report any business credit card activity to personal credit bureaus. So, regardless of whether payment activity is positive or negative, this information won’t be shared with personal bureaus at all, WalletHub states.  

5. US Bank Cards 

 

US Bank offers a range of business credit cards with a variety of rewards and benefits to help businesses grow.   

Each card has different annual fees and rewards, so US Bank probably has one that meets your credit and business needs. To apply and be approved, the company owner will need to provide their personal information and that of other beneficial owners.    

While the owner's personal credit score may not be impacted, their data is required to verify their identities.   

Employee cards can be requested and each of the individuals will need to be identified. Note that their personal credit scores will also not be impacted, the data will just be used for identification purposes.    

It’s confirmed that US Bank doesn’t report any business credit card activity to personal credit bureaus. Therefore, it doesn’t matter whether or not the payment activity is positive or negative, at least when it comes to your personal credit score, WalletHub notes.  

6. Wells Fargo Cards 

 

Wells Fargo does not currently offer a business credit card, but one will be offered soon! For now, they do offer two different business lines of credit.  

The Wells Fargo BusinessLine® line of credit requires that businesses be at least two years old or older.   

For new customers, they are currently offering the first year free of an annual fee, and then the following years will either be $95 or $125 depending on the amount of your line of credit.  

Lines of credit can vary between $10,000 to $150,000 as a revolving credit line.  

The other line of credit that Wells Fargo offers is their Prime Line of Credit. This option is usually for businesses with annual sales between $2 to $10 million. And its revolving line of credit varies between $100,000 to $1,000,000.  

Wells Fargo is another of the banks that doesn’t report any business credit card information to personal bureaus. Even if there’s a late payment or major delinquency, your personal credit won’t be impacted, explains WalletHub. 

EIN-only account opening conditions with each business credit card issuer listed above are basically the same. Businesses typically need to have at least $2 million in revenue, have been in business for at least two years, have a strong business credit profile (ideally with an 80+ PAYDEX business credit score) with no negative marks, and have positive cash flow.  

As long as you meet those criteria, you should have a realistic chance of getting a business credit card with an EIN. 

A Side-by-Side Comparison of Business Credit Cards 

A Capital One Business Card is a good option if: 

• You’re okay reporting business credit card activity to personal and business credit bureaus 

• You have at least a good personal credit score of 700+ (Note that some Capital One Cards require 740+) 

• You want a middle-of-the-road annual fee with solid rewards 

• You want a simple rewards system for eligible net purchases 

• You want free employee cards 

• You don’t mind limited travel benefits 

American Express is a good option if: 

• You’re okay reporting negative business credit card activity to personal and business credit bureaus 

• You have an excellent score of 740+ 

• You don’t mind a high annual fee but want robust rewards 

• You’re okay with reward category limitations 

Bank of America is a good option if: 

• You don’t want business credit card activity reported to personal credit bureaus 

• You have an excellent score of 690+ 

• You want a small to no annual fee, but don’t mind lesser rewards 

• You’re okay with foreign transaction fees 

Chase is a good option if: 

• You’re okay reporting negative business credit card activity to personal and business credit bureaus 

• You have a good to excellent score of 700+ 

• You want a middle-of-the-road annual fee with solid rewards 

• You want a sizable sign-up bonus 

Citi is a good option if: 

• You don’t want business credit card activity reported to personal credit bureaus 

• You have a good to excellent score of 700+ 

• You want a small to no annual fee, but don’t mind lesser rewards 

• You’re okay with limited reward categories 

US Bank is a good option if: 

• You don’t want business credit card activity reported to personal credit bureaus 

• You have a good to excellent score of 700+ 

• You want a small to no annual fee, but still get solid rewards 

• You’re okay with limited travel rewards 

Wells Fargo is a good option if: 

• You don’t want business credit card activity reported to personal credit bureaus 

• You have a good to excellent score of 700+ 

• You want a middle-of-the-road annual fee with solid rewards 

• You’re okay with limited travel rewards 

Get eCredable to Build Business Credit  

eCredable Business Lift provides a solution for building your business credit profiles with D&B, Experian, and Equifax. 

This innovative service empowers you to improve your chances of approval for business credit cards and funding options, thus fueling your business expansion.  

The eCredable Business Lift subscription tradeline can enhance your business credit scores by reporting your recurring business accounts to participating credit bureaus.   

eCredable automatically reports your eCredable Business Lift subscription tradeline monthly to D&B, Experian, and Equifax.   

eCredable connects with over 5000+ utility companies, service providers, vendors, and suppliers, empowering business owners with the ability to automatically report business accounts to the participating credit bureaus.   

This includes up to 24 months of payment history that enhances your credit profile upon initial reporting and with each monthly update.  

In conclusion, business credit cards offer a valuable financial tool for businesses keen on separating personal and business finances.   

By choosing the right card and leveraging services like eCredable, businesses can enjoy the benefits of credit with the added peace of mind that personal assets remain protected.  

 

How to Get an 80 PAYDEX Score  

Dun & Bradstreet’s (D&B) PAYDEX Score is one of the more popular business credit scores among vendors and commercial lenders. Having a score of 80 or higher shows them your business pays its debts on time, if not early, on average. 

And that’s a big part of establishing business creditworthiness and strengthening your business credit profile.   

Here’s a step-by-step guide explaining how to get an 80 PAYDEX score so you can more easily secure funding for your business.  

1. Look for Creditors That Report to Dun & Bradstreet  

Consumer credit bureaus compile your credit history into a credit report, but they let companies like FICO and VantageScore handle your credit score.   

In contrast, commercial credit bureaus play both roles, gathering business credit data and issuing business credit scores.  

Since they’re effectively competitors, the business credit bureaus don’t share their scores with each other.   

You can only get a copy of a business credit score from the business credit bureau that created it, and your score is only ever calculated using that agency's data.  

As mentioned previously, the PAYDEX is a D&B score, which is why the first step to getting an 80 PAYDEX Score is to identify creditors that report to D&B. Only accounts from those issuers will contribute to your DB rating.  

If you’re a relatively new business owner, it’s often best to start by going after vendor tradelines, also known as trade credit accounts. They come from businesses that don't specialize in lending and typically grant you an extended payment term with funding.  

Vendor accounts are easier to qualify for without a significant business credit history. In contrast, financial tradelines, which are accounts from lending institutions like banks or online lenders, usually require at least two years of business history and a good business credit score.  

Furthermore, the PAYDEX score only takes into account payments from vendors and suppliers. So get more of those to boost your score. Dun & Bradstreet says that you need two tradelines with at least three credit experiences for a PAYDEX score to be generated for a business.  

2. Open New Tradelines or Credit Accounts  

Once you have a list of credit issuers that report to D&B, start applying for new tradelines. Just avoid taking on so much debt that it becomes a financial burden. To get an 80 PAYDEX score, you must be able to make each payment on time.  

Though more affordable than a business loan, even vendor tradelines aren’t free. Though they generally don’t carry interest, you’ll still have to make regular purchases to build your payment history.  

Try to open vendor tradelines with businesses that offer products or services you already need. That way, using your credit account will do more than just build your business credit.  

Once you’ve established a positive payment history with three to six vendor tradelines, you can start thinking about opening financial tradelines.   

Typically, business credit cards that report to D&B are your best bet since those are easier to secure than business loans or revolving lines of credit.  

You may be able to start securing financial tradelines even sooner if you have a good personal credit score and apply with your Social Security Number (SSN). However, that usually requires that you personally guarantee your company’s debts. 

3. Make On-Time or Early Payments  

Payment history is the most impactful scoring factor in most business and personal credit scores. However, it’s especially significant to the PAYDEX Score, which is just a dollar-weighted measure of when, on average, you pay your bills.  

If you’re wondering how to get 80 PAYDEX score, being prompt with payments is a key part of the process.  

Here’s how it works:  

PAYDEX Score	Dollar-Weighted Average Payment Date
100	30 days early
90	20 days early
80	On the due date
70	15 days late
60	22 days late
50	30 days late
40	60 days late
30	90 days late
20	120 days late
1–19	More than 120 days late

Because the PAYDEX uses a dollar-weighted average, monthly payments of higher amounts have a more significant impact on your score.   

For example, making an early payment of $2,000 toward a business loan will help your score more than a prompt payment of $200 to your fleet card.  

The easiest way to get an 80 PAYDEX Score is to make all your monthly payments on time. However, if you make a late payment, you can recover faster by making future credit card and other payments as much as 30 days early.

4. Keep Your Credit Utilization Low  

Your credit utilization is the ratio of your outstanding debt to your credit limit. For example, if your business credit card has a $10,000 balance and a $25,000 credit limit, you have a 40% utilization rate on that account.  

While your borrowing percentage doesn’t directly impact your PAYDEX Score like your personal FICO Score, it’s still a good practice to keep yours relatively low. There are other business credit scores that do reward low credit usage. High credit usage is a red flag to lenders for a reason - it tends to correlate with financial distress.  

Additionally, this can impact your financial stress score, which is another key indicator of your company’s financial health.  

After all, the higher your borrowing ratio on a revolving credit account like a credit card, the harder it is to pay back what you owe.   

Additionally, if you carry a balance from one period to the next, you’ll incur significant interest costs. That can snowball quickly, especially when you’re juggling multiple accounts.  

If you’re more interested in building business credit than financing your purchases, the safest approach is to keep your debt balances below your cash reserves.   

That way, you can always afford to make your monthly payments, even if you start having cash flow issues.  

Remember, your PAYDEX Score is all about the timeliness of your payments, so you can’t afford to overextend yourself. Paying late or defaulting on an account could set your progress back significantly.  

5. Don’t Mix Personal and Business Credit  

Your business credit is technically separate from your personal credit, but it’s surprisingly easy to muddy those waters. While that’s not necessarily the end of the world, it can often have negative consequences.  

For example, some of the problems you may encounter when mixing your personal and business credit include:  

Messy financial records: If you use the same accounts for personal and business activities, it can become challenging to determine which transactions belong in which category. That can cause headaches when you need to do something like analyze your business’s financial performance or file your tax returns.  

Personal liability for business debts: When you open a business credit line with your SSN and consumer credit score, you often give the lender the right to pursue your personal assets if you fail to make your payments and default.  

Risk to your personal credit scores: Business tradelines typically don’t appear in your personal credit reports if you keep them in good standing. However, many creditors report negative activity on a personal credit report, especially if you sign a personal guarantee.  

To prevent issues like these, keep your personal and business credit as separate as possible. Avoid signing personal guarantees whenever possible and try to apply for vendor and financial tradelines in your company’s name, not your own.  

Keeping your personal and business credit separate isn’t strictly necessary to get a good DB PAYDEX Score, but it’s still highly beneficial.  

6. Dispute Any Inaccurate Information  

Errors in your business credit report aren’t as rare as you might think, and they can have a direct impact on your PAYDEX Score. Even a single incorrectly reported payment date could bring down your average timeliness significantly.  

Fortunately, while the protections in the Fair Credit Reporting Act (FCRA) generally extend to consumers and not businesses, you can still dispute inaccurate information in your business credit reports. It’s just not quite as streamlined a process.  

Here’s how you can fix the information in your D&B business credit report:  

Visit D&B DUNS Manager: Before you can update your D&B credit report, you need to find your company in its system, the DUNS Manager. Search using your business’s name and address. If you see your company in the search results, move on to the next step. If not, request a new DUNS Number to start a new credit report with D&B.  

Verify your identity and business association: Before you can update your business’s information, you have to prove your identity and show that you’re an owner, director, or officer of the company in question.  

Request updates to your company’s information: Once D&B has accepted your identity and business association, you should be able to request updates to your company’s identifying information, upload financial statements, and dispute any "payment experience" that appears in your business credit score.  

In addition to using the free DUNS Manager portal, you can purchase D&B’s CreditBuilder service for $149 per month. Its benefits include the ability to manually submit up to 12 trade references to your D&B report.  

Both of these options have the potential to help you fix errors in your credit report, but there’s no guarantee that D&B will agree with or accept your update requests.  

Tips for New Businesses  

If you’re a new business owner, here are some additional tips to keep in mind as you start building business credit for the first time.  

Understand and Apply for a DUNS Number and EIN  

If you want your business to qualify for bank funding on its own someday, you must establish it as a separate entity. A DUNS Number and Employer Identification Number (EIN) are both essential to that process.  

A DUNS Number is a nine-digit number D&B uses to track your business in its system. D&B may assign one automatically if a vendor or lender requests information about your company, but if not, you must request one to start your D&B business report.  

Similarly, an EIN is a nine-digit number that the Internal Revenue Service (IRS) uses to identify your company for tax purposes. It’s like an SSN for your business, and you can use it to apply for business credit in your company’s name.  

Fortunately, you can request a DUNS Number and EIN for free online:  

Claim Your Free DUNS Number  

Apply for an Employer Identification Number  

In both cases, you’ll need to provide identifying information about your business, such as its legal name, address, and structure. It can take up to 30 business days to get your DUNS Number, but you should see your EIN immediately after completing the process.  

Monitor Your Business Credit Scores  

Unlike consumers, the FCRA doesn’t grant businesses the right to access their business credit scores for free. As a result, you typically have to pay to get a copy of your PAYDEX Report.  

That said, it’s still well worth doing to make sure your progress aligns with your expectations. If you see your PAYDEX drop for no apparent reason, you may have missed something, or there could be an error in your D&B credit report.  

You can access your DB Scores directly from D&B, but it’s relatively expensive. D&B requires you to purchase one of its subscriptions, the cheapest of which costs $49 per month. Of course, it comes with additional benefits, including other business scores.  

However, if you’re only interested in your PAYDEX, the cheapest option is credit monitoring company, BusinessCreditReports.com, which offers a copy of the score a la carte for $5.95.  

Or if you’re looking for something a bit more robust with other business credit bureaus, another option is CreditSuite. 

If you’d like to reference this guide offline, we’ve included a printer friendly page for your convenience. And you can also check out our recent posts for related content. 

Build Business Credit Faster With eCredable  

Building good business credit is traditionally a lengthy endeavor that requires a significant investment of additional capital. However, you can significantly reduce the time and money it takes by using eCredable.  

Our Business Lift program lets you report the recurring expenses you’re already paying, like utility bills and certain supplier account payments, to Equifax and Creditsafe as vendor tradelines.   

In addition to ongoing payments, it also includes up to 24 months of historical payments, which can help you build years of business credit history virtually overnight.  

We’ll also report your eCredable subscription payment to D&B and other business credit bureaus, which has been known to help companies get up to a 40% higher score in the first three months! Sign up for eCredable today and take the shortcut to better business credit.  

8 Best No Personal Guarantee Business Loans 

The reality is that most small business loans require a personal guarantee (PG).  

The good news is that there are business loans out there that you can get without a personal guarantee. Here are some of the best no PG business loans to consider as you’re seeking out ways to finance your business activities.  

Best No Personal Guarantee Business Loans 

1. Supplier Credit
2. Commercial Real Estate Loans 
3. Business Credit Cards 
4. Merchant Cash Advance
5. Invoice Factoring 
6. Equipment Financing or Leasing
7. Term Loans
8. Lines of Credit

1. Supplier Credit 

Supplier credit, also called trade credit or vendor credit, is a form of credit in which a vendor extends payment terms (like net 30 terms) to small businesses to help them grow their business credit score while paying for the products or services they need to purchase for their business.  

Many supplier credit opportunities require no personal guarantee or personal credit checks and come with the ability to have your payments reported to a major credit bureau as a tradeline so that your low or non-existent credit score improves with each payment.  

One minor disadvantage across various suppliers is the potential for one-time or continuing fees as well as purchase minimums, which will require you to have a minimum payment amount before you can take advantage of their net 30 terms.  

If you’re interested in supplier credit, you can sign up for a net 30 account with suppliers like Grainger or Quill. 

2. Commercial Real Estate Loans 

Are you a physical business owner looking to purchase commercial property like restaurant buildings, retail stores, or warehouses?  

One key benefit of being a traditional brick-and-mortar business is that you can access no personal guarantee commercial real estate loans that you need to execute your business vision.  

As with many other loans, your current credit score and business history will play a crucial role in the terms you receive. More importantly, the value of the property you’re looking to secure will affect the outcome too when you’re looking for this type of business financing.  

Many commercial real estate loans and even alternatives, like hard money loans, will require a personal guarantee. That being said, not all do. One type of commercial real estate loan worth looking into is non-recourse commercial property loans.  

Non-recourse commercial property loans protect your assets by making it so that the only asset that’s at risk should you default on your loan is the property you own. Your building is your collateral. 

That being said, there are some disadvantages worth considering, such as the typical $1 million loan minimum and the fact that lenders tend to offer these loans to borrowers looking to purchase rental properties.  

Given the nature of non-recourse loans, lenders may only offer these to those who are guaranteed to generate revenue from their properties and those who are considered to be low-risk borrowers. 

A low-risk borrower means having a high credit score, a good credit history, and sizable revenue. 

Some institutions that offer non-recourse commercial real estate loans include the Commercial Real Estate Finance Company of America and other companies that you can use to find lenders like The Madison Group.  

3. Business Credit Cards 

Business credit cards can be an excellent way to fund your business. No matter your current credit situation, there’s a business credit card out there for you that you can leverage to both bolster your credit and finance your small business.  

But are there an equal number of no personal guarantee business credit cards out there to choose from as well?  

As it turns out, there are! 

If you’re looking for a no PG business credit card to support your business financing needs, one place to start would be with the Ramp Card.  

Ramp offers a corporate charge card that easily integrates with its other financial management solutions, allowing you to easily capture receipts, control spending, and establish budgets across different cards with ease.  

More than that, Ramp doesn’t require a personal credit score or a personal guarantee, you get unlimited virtual and physical cards (also compatible with Google Pay and Apple Pay), and your credit limit can increase as your revenue does, allowing you to scale with ease.  

With the above in mind, there are some things to take note of. To apply for a Ramp card, your small business must: 

• Be registered in the United States as a corporation, LLC, or LP.  
• Have at least $75,000 in the bank account that you provide with your application (the Ramp Card is an unsecured card that does not require collateral).  
• Conduct the bulk of its operations and spending in the United States.  

The only downside of note with the Ramp Corporate Card is that you do have to pay your balance in full every 30 days, which can make it a bit harder to keep your account in good standing and finance your business.  

If you’re looking for something that might be more within the realm of possibility for your business, some worthy alternatives include the Brex Corporate Card and the SVB Innovator Card.  

4. Merchant Cash Advance 

A merchant cash advance, also known as a business cash advance, is a unique type of business financing in which businesses receive a lump sum payment in return for promising the lender a portion of their future credit and/or debit card sales, calculated based on past sales.  

A major benefit for small businesses is a merchant cash advance typically requires no personal guarantee or high credit score. It also boasts a rapid approval process, quick access to funds, and may say that there’s no collateral required (although terms can always vary).  

The downside? Business cash advances often carry the same risks as personal cash advances and could affect business credit like personal credit, with financing that may carry strict daily or weekly repayment loan terms, high financing fees, and the potential to fall into debt much easier.  

This is why it’s important to truly assess the need for a merchant cash advance prior to applying for one, even if you have bad credit or other issues that can make it hard to secure business funding in other ways without a PG. 

Still, it is a resource that can help you access funding easily with no personal guarantee. One of the best ones is Credibly’s merchant cash advance, with funding up to $600,000, an approval process that can get money to you in as little as four hours, and fluctuating remittances. 

5. Invoice Factoring  

Invoice factoring and invoice financing represent a unique funding method that some small businesses may not be aware of.  

With invoice financing, you reach out to a lender for a short-term loan, one that typically requires interest on the cash advance, weekly payments, and a processing fee. In return, you use your current invoices as collateral. One or more invoices may be used as collateral. 

With invoice factoring, interested parties will buy invoices from you outright and provide you with funding that’s less than the true value of the invoice, which can take the stress of collection off your shoulders while still helping you finance your business.  

Both options are typically utilized by businesses with bad credit and a lack of access to other funding opportunities. They can help you receive funding during emergencies and during times when cash flow may not be looking as good as you need it to be.  

Most lenders who offer invoice financing or factoring also require no personal guarantee, and you likely won’t need a minimum credit score to be able to use these resources either. 

That being said, they do carry risks, such as the high costs of tapping into these opportunities and the limitations, with B2B businesses being the ones most often able to use invoice factoring or financing when cash flow is slow. 

If you’re interested in pursuing invoice factoring or financing and you don’t mind using invoices as collateral, one company that can help you get started is Resolve.  

6. Equipment Financing or Leasing 

Equipment financing or leasing allows small businesses to tap into the funding that they need to acquire the equipment that their business relies on to operate. An excellent example of this is a restaurant that needs kitchen equipment to open and start serving customers.  

Equipment financing or leasing solutions like those offered by National Funding make it easy to get the resources you need to secure medical equipment, commercial fleets, and office equipment, just to name a few.  

You can get up to $150,000 in funding after completing a seamless application process that will help you get a tailored payment plan that’s ideal for your current financial situation and business needs.  

They do require you to have fair to excellent credit scores, will need you to have at least six months of business history, and need quotes from vendors for the equipment you plan on purchasing.  

It’s important to note that there’s always the potential for some equipment financing business loans to require a personal guarantee.  

Ensuring that you’re a trustworthy borrower and looking for equipment financing options from lenders that detail the equipment as your sole collateral will help you access funding that doesn’t put your personal assets at risk.  

7. Term Loans 

Aptly named, term loans are small business loans with specific term lengths that give your business access to a lump sum of money you can use to fund your business.  

Repayment terms and loan lengths will vary, with the shortest lasting around one to five years and the longer ones lasting up to 25 years.  

If you’re currently researching term loans that require no personal guarantee, you might be disappointed to find that most of these business loans require a personal guarantee.  

For example, you may immediately think of Small Business Administration or SBA loans, which do require a PG. 

As per our advice in the previous section on business lines of credit, positioning yourself as a less risky borrower may make it so that you can approach institutions (good credit score, revenue, and so on), whether you’re looking into some of the best unsecured business loans like the Business Advantage Term Loan from Bank of America or opportunities from Funding Circle. 

Take your time to carefully research your business funding options and shop around to find a term loan (unsecured loans with no collateral or secured loans) from lenders that give you the most financing while also allowing you to carry the least amount of risk.  

(Bonus Tip: If you’re interested in a term loan that doesn’t require a personal guarantee and focuses on helping you save and build your credit, consider a business credit builder loan.). 

8. Lines of Credit 

A line of credit refers to any type of credit where you’re extended a credit limit that you can tap into, only paying interest rates on the amount you borrow, and immediately having access to that full limit again once you pay your borrowed funds back.  

Some businesses will think of lines of credit in terms of business credit cards, and this is certainly one type of business line of credit with no personal guarantee that you can obtain. While it’s true that business credit cards come with credit lines, lenders don’t classify them as lines of credit.  

Because not all lines of credit require you to have virtual cards or physical cards to tap into business funding. An excellent example to look at when discussing business lines of credit is FundBox.  

FundBox is a company that offers business lines of credit up to $150,000, boasting a fast application process, quick access to funds, and flexible repayment terms.  

For example, the main requirements that small businesses need to meet in order to access a Fundbox line of credit include being in business for at least six months, having a business account, making at least $100,000 in annual revenue, and having a 600+ FICO score.  

Now, it’s important to remember that, with all companies like FundBox and even traditional banking institutions like Bank of America, the word may does a lot of heavy lifting when they say you may need to sign a personal guarantee to access business loans.  

Personal guarantees are in place to protect financial institutions, and they may only waive them in specific situations, especially with secured business loans.  

Unsecured business loans (no collateral required) are often the most accessible, but they typically require a personal guarantee due to this.  

There are limited personal guarantee-free choices, but that doesn’t mean there are none. 

How can you make sure that you’re in a better position to avoid a personal guarantee regardless of the loan amount or terms? Here are a few areas to focus on before you start filling out applications for business financing. 

• Strong Business Credit Scores and Credit History: Lenders are more likely to waive the personal guarantee requirement if you have a strong business credit score and an extensive history proving you pay back your loans. As it is with any type of loan, the stronger your credit (much better than the minimum credit score), the better the terms.  
• Impressive Revenue: Lenders give the best terms to small businesses that have strong business activity. The more revenue you’re bringing in, the more it shows them that you can pay back your debts with ease.  
• Extensive Business History: The longer your small business is active, the more stable your business appears to lenders. Businesses that have just started or ones that have not been operating for as long are seen as a higher risk, which is why they often sign personal guarantees. Lenders like to see at least 2 years of business history for this type of financing product. 

It’s important to remember that there’s no guarantee you will be able to avoid a personal guarantee, but the tips above may increase the likelihood that you can negotiate without having to sign one.  

Moreover, keep in mind that there are plenty of definitive no personal guarantee business loans you can tap into below! 

How eCredable Can Help You Build Credit Without a Loan 

Whether you’re looking to improve your chances of securing funding without a personal guarantee or you want to access better funding opportunities, you need good business credit.  

eCredable makes it easy to build your business credit by reporting your subscription payment as a business tradeline to Dun & Bradstreet, Experian, and Equifax. Moreover, we’ll help you report third-party bills like business utilities to Equifax and Creditsafe.  

Whether you’re interested in our basic Business Lift offering or you want additional cash flow insights and support with our Business Lift+ subscription, sign up today to build your business credit and take your business to the next level! 

 

The Capital One Secured Business Credit Card 

Does Capital One Have a Secured Business Credit Card? 

No. Capital One does not offer a secured business credit card.  

As you’ll discover, a Capital One secured business credit card is not the best choice for building credit. If they did offer one, there are much better alternatives.  

Are Secured Credit Cards the Best Way to Build Business Credit? 

If you’re looking to build business credit, you might be researching the best secured business credit cards.  

While they might seem like a logical choice, they’re not as necessary as one may assume.  

There are plenty of challenges and issues that come with applying for a secured business credit card. These include:  

• You will typically be required to provide your SSN and undergo a personal credit check. Searching for a Capital One business credit card EIN only is unlikely to turn up any results. A Capital One credit card could put your personal credit score and credit history at risk.  
• Secured business credit cards generally offer you one tradeline. More than that, they most often only report to one business credit bureau rather than several credit bureaus. This does little to support your score, all while coming with undesirable restrictions. It offers less than an unsecured credit card and presents more problems than solutions. 
• They cost a lot upfront to access the secured credit card in question. You may pay up to $1,000 to get an equal credit limit. This credit limit is likely to be exhausted quickly as well (in comparison to the credit limit offered by an unsecured card). There are usually high interest rates and fees associated with these cards as well. A Capital One business card can be expensive. That is, if you’re approved. You can still be turned away from secured business credit cards. Successful account opening is not guaranteed. 

So, what’s the solution? We recommend vendor tradelines instead of a Capital One business card.  

Vendor tradelines are cheaper and easier for businesses to secure. You can open many accounts and benefit from several tradelines at once. You may even get a higher credit limit than you would with a secured credit card issuer.  

How to Build Business Credit Without Secured Business Credit Cards 

The best way to build business credit without secured business credit cards is via vendor tradelines.  

Tier 1 business credit vendors offering net 30 accounts have very few hoops to jump through. They will generally report to at least two major business credit bureaus. They also come with limited fees in comparison to a secured card.  

Net 30 accounts are accounts that you have to pay back in 30 days. So long as you pay on time or earlier than expected, you can build business credit quickly.  

eCredable can help you tap into the credit-building benefits of vendor tradelines with ease. eCredable comes with a myriad of benefits you won’t find with secured business credit cards.  

When you sign up for our services, you receive: 

• Multiple Tradelines: eCredable helps you build credit fast with multiple tradelines. Your monthly subscription payment is reported as a tradeline. Then, we help you leverage your recurring bills to build credit. Our third-party bill reporting service helps you develop even more tradelines to build credit with ease.  
• Reduced Fees: eCredable is much cheaper than secured business credit cards. This helps you save money while still getting the credit-building benefits you need.  
• Guaranteed Qualification (And No Personal Credit Score Check): So long as you have an EIN and an established business, you’ll be able to sign up for eCredable. We don’t check your personal credit score like a secured credit card might. Whether you have bad credit, fair credit, or no credit, we’re there for you. 
• Comprehensive Reporting: Our primary subscription is reported to D&B, Equifax, and Experian. Meanwhile, all third-party bills are reported to Equifax and Creditsafe.  

If you want to build business credit with ease, get started with eCredable! 

Which Credit Bureaus Do Capital One Business Credit Cards Report To? 

When you’re looking into business credit cards, there are two important questions to ask.  

Which business credit bureaus does this card report to, and does it report to consumer credit bureaus as well?  

The first answer as it pertains to Capital One business credit cards is D&B, Equifax, and Experian.  

This is appealing as these are the bureaus you need to report to in order to build credit successfully. You do generally get the desired support with a Capital One business card. 

But what about personal credit? Does Capital One business card report to personal credit? Unfortunately, Capital One business cards report to consumer credit bureaus as well.  

Many Capital One business cards report activity to the three major consumer credit bureaus: TransUnion, Equifax, and Experian.  

There are a few exceptions. Some Capital One business cards only report negative activity. This will only affect personal credit history if you fail to pay or pay late. These include the Capital One Spark Cash Plus and the Capital One Venture X Business cards. 

Still, this is not something that you want when building business credit. Should something happen to your business, your personal credit score is on the line as the business owner. It will damage your credit history and make it harder to secure personal funding.  

It’s always best to keep business finances and personal finances separate. If you mix the two, you could end up in a bad spot financially.  

Is It a Good Idea to Use Personal Secured Credit Cards Instead of Business Secured Cards? 

Continuing with the above point, this is rarely a good idea. Secured business cards are designed for business use. Personal secured cards are designed for personal use.  

This is true no matter if you’re recommended a personal secured card to boost cash flow while shopping around. 

Once you start opening personal accounts to fund your business, you put your personal financial stability in jeopardy. A personal secured credit card is a risk to your financial health.  

Should something happen, you’re on the hook for those debts. This consequence of using a personal secured card can result in a plummeting credit score, legal trouble, and more.  

If you can’t find a secured business credit card or you want a better alternative, sign up for eCredable Business Lift or Business Lift+! 

Best Business Credit Building Companies in 2025 

Good business credit is often essential for securing financing for your company, especially if you’re interested in raising large amounts of money through a business loan or business line of credit from a traditional financial institution. 

Here are some of the best business credit building companies in 2025. They can help you establish your business credit history, monitor your progress as you go, and fund your business operations. 

1. eCredable 

Generally, the more tradelines you have in your business credit reports, the easier it is to build strong business credit. However, opening multiple business tradelines one at a time can be surprisingly expensive, not to mention, time-consuming. 

eCredable offers an efficient shortcut. With our Business Lift program, you can report the recurring business expenses you’re already paying to the business credit bureaus, transforming each of them into a separate vendor tradeline. 

There’s no limit to the number of expenses you can report, and in addition to your current payments, you can report up to two years of historical activity. We’ll even report your monthly eCredable subscription as its own tradeline to give you an extra boost. 

As a result, you can use eCredable to expand and deepen your business credit history much more quickly and affordably than you could with traditional vendor tradelines, such as net 30 accounts. 

In fact, our clients see an average increase of 32 points in their business credit score at each participating business credit bureau in the first three months. Get started today with no hard pull of your business or personal credit score. 

2. FairFigure 

FairFigure is a business credit management platform that offers credit monitoring, financing, and credit building products and services. Its goal is to provide business owners with everything they need to build business credit in one place. 

The credit monitoring services include access to your business credit reports and scores at Dun & Bradstreet (D&B), Creditsafe, and Equifax Business. 

You’ll also get FairFigure’s proprietary Fundex Report and Foundation Score, which incorporate your financial data. The only business credit report missing from their service is Experian Business. 

They also provide all three major personal credit reports and scores, including those from TransUnion and the consumer divisions of Equifax and Experian. You’ll get a copy of your VantageScore 3.0 using each credit bureau’s data. 

Meanwhile, the financing and credit building features come from the FairFigure Capital Card, which offers credit lines starting at $1,000 for companies with at least three months in business and $2,500 or more in monthly recurring revenue. 

FairFigure reports the card and your monthly subscription to the major business credit bureaus as separate tradelines. You can also apply with your Employer Identification Number (EIN) only, and no personal guarantee is ever required. 

3. Credit Suite 

Credit Suite offers a step-by-step credit building program called the Fundability System. It’s designed to take you from having no business credit to having everything you need to qualify for business financing in place. 

Credit Suite breaks the Fundability System down into five steps: 

1. Starting point analysis: Credit Suite analyzes your business’s credit history and financial health to help you understand what types of financing you’re currently qualified for and plan a path to improvement. 

2. Weakness correction: Credit Suite identifies and removes limiting factors that may be holding you back from qualifying for credit accounts. This can include things like establishing your 411 listing or opening a business bank account. 

3. Credit report opening: Credit Suite helps you open, access, and correct any errors in your business credit reports. It currently partners with Nav to provide its business credit monitoring services. 

4. Fundability maximization: Credit Suite guides you through a personalized roadmap to help you enhance your business credit profile, enabling you to secure more and better financing. 

5. Credit issuer matching: Credit Suite matches you with vendors and lenders that are appropriate for your credit profile, helping you build credit history and secure financing without relying on your personal credit or signing a personal guarantee. 

Your monthly subscription to the platform grants you access to a dashboard that holds your hand through each of these steps, saving you the time and stress of navigating the complex world of building business credit on your own. 

4. Nav 

Nav has recently expanded its suite of products and services significantly. It now provides a business checking account, a financial product marketplace, cash flow tracking, credit monitoring, financing, and business credit building. 

Its credit monitoring, financing, and business credit building features are all rolled into its Nav Prime subscription, which has three different tiers. 

Track, the first tier, provides business and personal credit monitoring services for all of the major credit bureaus, including D&B, Experian, Equifax, and TransUnion. Nav also reports your subscription to the credit bureaus as a vendor account. 

Build, the second tier, includes everything in the first tier plus access to the Nav Prime Card, which is a business credit builder card that Nav reports to the business credit bureaus as a financial tradeline. 

Nav automatically charges your bank account to pay off your balance each day, but that means you don’t have to worry about your credit utilization. 

Expand, the third and highest tier, includes everything in the second tier plus access to the rare FICO SBSS score, which is the credit score lenders who partner with the Small Business Administration (SBA) are required to use to screen candidates. 

In addition, Expand includes a dedicated business credit coach who can provide strategic advice and help you improve your company’s creditworthiness. 

5. The CEO Creative 

The CEO Creative is essentially a digital store with an eclectic mix of products and services, including: 

• Electronics 
• Branded apparel 
• Home and office supplies 
• Business plan templates 
• Website design and digital marketing 

While none of these directly relate to building credit for your business, The CEO Creative also offers net 30 payment terms. If you sign up, it’ll report the vendor credit line to the business credit bureaus. 

The CEO Creative is also unusually candid about the qualification requirements, which shouldn’t be an issue even for a new small business owner. They include: 

• Be located in the United States 
• Exist for at least 30 days 
• Have a clean business history with no late payments 

You can usually expect to qualify for a credit limit between $1,000 and $1,500, and CEO Creative reports to D&B, Equifax Business, Creditsafe, and the National Association of Credit Management. 

However, there is a $39 annual fee and may be a minimum spend requirement to submit your application. In addition, you must pay 20% of each order upfront, and only the remaining balance is payable using net 30 terms. 

6. JJ Gold 

Similar to The CEO Creative, JJ Gold is a digital store that doubles as a net 30 vendor to help new business owners add another trade credit account to their business credit reports. 

As you can probably guess from the name, JJ Gold specializes in jewelry, including bracelets, earrings, and necklaces. However, you can also buy a variety of other products from its shop, such as: 

• Hair and beauty products 
• Gift sets for him and her 
• Candles and decorations 
• Eyewear and apparel 

JJ Gold’s eligibility requirements are the same as those of The CEO Creative. Your business must be located in the U.S., have existed for at least 30 days, and have a clean business history with no late payments. 

There’s a $99 annual fee for the account, and new borrowers must pay 20% of each order upfront, though that requirement may be waived once you become more qualified. 

Additionally, there may be a minimum spend requirement to apply, and interest accrues on any past-due payments at a rate of 17.99% APR. 

7. Business T-Shirt Club (Branded Apparel Club)  

Branded Apparel Club, formerly known as Business T-Shirt Club, offers—you guessed it—branded apparel, including t-shirts. You can purchase a variety of clothing from the store, including blank, customized, and retail apparel. 

However, once again, the credit building value of the company lies in its net 30 account. This time, there are no eligibility requirements other than signing up for an annual membership, which costs $69.99 per year. 

You’ll receive a net 30 account with an initial credit limit of $2,500, plus access to a free design tool and graphic design services. However, there’s a 50% deposit required for at least your first five orders and a $100 minimum order requirement. 

Each of the companies we've explored offers something that can help you build good credit for your business, whether that’s additional tradelines, credit monitoring, or personalized strategic guidance. 

However, these are far from your only options. There are many other strong credit building products to consider, such as a business credit builder loan or secured business credit card. Ultimately, the key is finding what works for your business.