- The Leverage Letter
- Posts
- Issue #039
The Leverage Letter
Smarter Tools. Better Credit. Optimal Living.
Your no-nonsense friend helping you leverage credit for your business, travel, and life!.
YOUR LIFE NOW:
You’re growing your business, using business credit to move fast.
You see a shiny card or credit line, sign the dotted line, and don’t think twice about the “Personal Guarantee” buried in the fine print.
YOUR LIFE WITHOUT CHANGE:
That one checkbox might mean creditors can come for your savings, your investments—even your home—if business slows down.
You thought your LLC or S-Corp protected you?
Not from this.
YOUR LIFE AFTER CHANGE:
You build credit in your business name, negotiate better terms, and reduce personal exposure.
Your credit stays strong.
Your stress stays low.
Your wealth stays protected.
Let’s break it down.
THE TRUTH ABOUT PERSONAL GUARANTEES (PGs)
Most people skip over this clause when opening business credit. But here’s why that one line can cost you everything:
It Turns Business Debt Into Personal Risk
A PG makes you personally responsible for repayment.
Even if the business fails.
Even if you shut down your LLC.
Your car, bank account, and even your home equity?
All fair game.
It Sticks Around for Years
Just because your business shuts down doesn’t mean your liability disappears.
Creditors can—and will—come knocking years later.
It Hurts Your Leverage
Lenders count PG-backed debt against you personally.
Trying to refinance a home or invest in property later?
That debt shows up. You get less.
It Creates Mental Pressure
When your personal life is tied to business performance, even small setbacks feel massive.
It’s exhausting.
WHEN PGs SHOW UP (AND HOW TO SPOT THEM)
You’ll most likely see a Personal Guarantee required if:
Your business is under 2 years old
Your revenue is low or inconsistent
You’re applying for an SBA loan
You’re opening a business credit card with a major bank
PGs are normal early on—but that doesn’t mean they’re safe long-term.
HOW TO AVOID PERSONAL GUARANTEES (SMARTLY)
You might not escape PGs today—but you can outgrow them. Here's how:
Start With Strategy
PG-backed cards often offer high signup bonuses and 0% APR. Use them, but don’t stay dependent.
Build Business Credit Early
Establish tradelines. Pay vendors on time. Get reporting cards.
The stronger your business profile, the less PGs you'll need.
Use Business Bank Accounts (Seriously)
Cards like Brex, Ramp, and Divvy don’t rely on PGs—they base approval on business cash flow.
No strong business banking = no access.
Always Read the Fine Print
Is the PG capped? Unlimited?
Does it kick in only at default?
You might need legal help to decode it—but never sign blind.
REALITY CHECK: THE CONSULTANT’S $40K LESSON
"David" ran a six-figure consulting biz.
He signed up for multiple cards, spent $40K on tools and contractors.
Business slowed down after a contract fell through.
He missed a few payments.
And creditors came after him, not the LLC.
His personal credit tanked. He got letters threatening asset seizure.
He paid off the balances, negotiated a non-PG credit loan, and rebuilt—but the stress nearly broke him.
Lesson: Don't assume. Know what you’re signing.
THIS WEEK’S ACTION STEP
Log into your business credit card accounts.
Pull the terms (or check your original agreements).
Look for any mention of “Personal Guarantee.”
Knowing where your risk lies is the first step to protecting your future.
→ Hit reply and tell me: Did you know your card had a PG?
AWARD BOOKING SPOTLIGHT
Seattle (SEA) → London (LHR) in Business Class
Points Used: 48,000 Virgin miles + $262 in taxes
Cash Price: $5,638
 Booking with Cash. |
Booked via: Virgin Atlantic Club using Amex MR points (transferred 1:1)
Booked for: 2-week creative sabbatical and Tea-fueled reset.
Want this kind of win? It starts with the right credit card setup.
BEFORE YOU GO…
Free Resource Drop:
→ [Business Credit Foundation Checklist]
Build the right setup from Day 1 and reduce future PG exposure.
Need Custom Strategy?
I offer 1:1 Leverage Sessions for high-performers:
→ Fund your business with credit (not savings)
→ Build a system that runs with or without you
→ Travel in luxury without paying out of pocket
To building your optimized life,
Ade O.
Chief Leverage Officer
Helping high-performers build credit, use automation, and live well.
P.S.
If this helped you, share it with a business friend who needs to know what a PG really means.
And as always—keep leveraging.