Want to build credit for your business without tying it to your personal finances? You're not alone. In 2025, more founders are pushing back against personal guarantees (PGs), and it's finally realistic—if you know how to play it.
Here’s how to do it step by step, with specific strategies, vendors, and benchmarks you can follow.
Why Avoid a Personal Guarantee?
A PG means you’re personally on the hook for your business’s debt. Even if you’ve formed an LLC or S-corp, a PG brings the liability back to you.
No PG = true separation of business and personal risk.
Step 1: Lay the Legal & Financial Foundation
- Register your business (LLC or corporation)
- Get an EIN from the IRS
- Set up a business bank account
Compare top options in our Best Business Bank Accounts for Startups in 2025
Your EIN—not your SSN—should be on every application from here on.
Step 2: Break the Catch-22 of Business Credit
You can’t get business credit without history, and you can’t build history without accounts… right?
Wrong. Here’s how to break it:
- Start with vendors that don’t require credit history
- Use fintech cards like Brex or Ramp that approve based on cash flow, not personal credit
- If needed, start with a PG card, but use it lightly while building toward removal
Step 3: Set Up Tradelines That Actually Report
Not all vendors report to credit bureaus. Use the ones that do.
| Tier | Example Vendors | Reports To |
| Starter | Uline, Quill, Grainger, Summa Office | D&B, Equifax |
| Mid | Nav (paid), Crown Office Supplies | D&B, Experian |
| Growth | eCredable, CreditStrong Biz, Tillful | Experian, Equifax |
Open 3–5 tradelines and pay early. These become your foundation.
Step 4: Use a No Personal Guarantee Business Credit Card
Once you’ve built up a few tradelines, apply for a business card with no PG.
Best picks (June 2025):
- Brex Card — No PG, reports to Dun & Bradstreet and Experian
- Ramp Corporate Card — No PG, cash flow underwriting
- Amex Blue Business Plus — PG required, but reliable for building Experian business credit
Full breakdown in our Best Business Credit Cards for Startups in 2025
Step 5: Know What You’re Building Toward
Here’s what good credit looks like (and what lenders want to see before removing a PG):
| Goal | Target |
| Monthly revenue | $10,000+ sustained for 3+ months |
| Vendor tradelines | At least 3 active, reporting |
| D&B Paydex Score | 80+ |
| Experian Intelliscore | 76+ |
| Equifax Biz Score | 90+ (if visible) |
| Time in business | 6–12 months minimum |
Step 6: Know Which Actions Build Which Profiles
| Bureau | How to Build |
| Dun & Bradstreet | Uline, Quill, NAV (paid), Brex |
| Experian Biz | Credit cards, eCredable, Brex |
| Equifax Biz | Fuel cards, CreditStrong Biz, Ramp |
Track your progress using Nav, CreditSignal, or Tillful.
Step 7: Request PG Removal
After 6–12 months of history, call or email your lender:
“I’ve had $XX,000 in consistent monthly revenue, 3 tradelines reporting, and 100% on-time payments. I’d like to remove my personal guarantee.”
Some will say no. Others will graduate you automatically.
Bonus: Mistakes That Derail Business Credit
- Applying for 3–5 cards at once (triggering denials)
- Using personal accounts for business purchases
- Missing even one vendor payment
- Assuming every vendor reports (they don’t—confirm first)
6-Month Roadmap
| Month | Focus |
| 0–1 | Register business, EIN, open a bank account |
| 2 | Apply for 2–3 net-30 vendors that report |
| 3 | Add a fintech card like Ramp or Brex |
| 4–5 | Monitor scores, add more tradelines if needed |
| 6 | Apply for no PG credit cards / request PG removal |
Resources to Keep Going
