My Business Credit Journey to 1,000,000

If you read the title and you do not know that PG means Personal Guarantee, and you are not certain what it means, you need to start with the business credit basics.

A PG is where you apply for a business credit card but you accept personal liability for the account in the event that the corporation cannot pay the debt. A couple years ago, there was the notion of removing the pg from the account after 6 months. This notion was being promoted over and over by many of the business credit gurus out there. This is only partially true.

Business credit cards with a PG come with two major differences. There are some that report to your personal credit report weather you default or not, and there are some that only report when you default. This makes a huge difference when you want to keep your debt ratios down. These two aspects of cards may both have the option to remove the personal guarantor from the account, but you must understand that in today financial climate, no back is going to remove a PG is as little as 6 months and many of the banks simply do not plan to ever remove the pg. I have recently seen websites and business credit experts talking about this again, and this is why I am trying to bring this to light. You should go for business credit cards without a PG if you do not want to PG these cards at all.

Marc