![]() Kassar’s concern is that fintechs are not beholden to existing banking regulations that traditional lenders will need to follow regardless of these new rule changes. In particular, we believe that by leveraging technology and nontraditional data, fintechs can better serve small business borrowers in the 7(a) program while maintaining the high credit and compliance standards set by established participants.”Īmi Kassar, CEO and founder of MultiFunding, a Philadelphia-based company that helps small businesses navigate the SBA loan process, worries that the new rules will lead to an uptick in fraud and widespread loan defaults over the next three years, all backstopped by the U.S. For more information, please see our Privacy Policy Page.In a Janucomment letter to the SBA, Penny Lee, CEO of the Financial Technology Association-the trade association representing fintechs-pledged support for the new rules: “Fintechs play an important role in filling the credit access gap, especially when no other options are available and we encourage the SBA to proceed with this initiative. Our affiliate compensation allows us to maintain an ad-free website and provide a free service to our readers. This can affect which services appear on our site and where we rank them. While we strive to keep our reviews as unbiased as possible, we do receive affiliate compensation through some of our links. ![]() Our mission is to help consumers make informed purchase decisions. Clarify all fees and contract details before signing a contract or finalizing your purchase. For the most accurate information, please ask your customer service representative. Pricing will vary based on various factors, including, but not limited to, the customer’s location, package chosen, added features and equipment, the purchaser’s credit score, etc. You just don’t have to deal with personal liability.ĭisclaimer: The information featured in this article is based on our best estimates of pricing, package details, contract stipulations, and service available at the time of writing. ![]() You still have to pay annual fees, foreign transaction fees, and interest rates-and the rewards are pretty comparable as well. Other than that, there’s not a whole lot of difference between regular small-business credit cards and EIN-only cards. And since you’re not personally liable, your personal credit doesn’t play a role in the approval process, and late payments on the card will be reported to only business credit bureaus (not consumer credit bureaus). With an EIN-only card, your company assumes full responsibility for the debt. From there, the card issuer does a hard check on both your business credit score and your personal credit history.ĮIN-only cards are different because they don’t require you to sign a personal guarantee. You’d probably also have to sign a personal guarantee in which you agree to be personally liable for your business credit card debt if your business is unable to pay it. If you were to sign up for a Chase Ultimate Rewards card, for example, you’d have to provide both your EIN (if you have one) and your social security number. First, here's a little refresher on run-of-the-mill business credit cards.
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