An Unsecured Line of Credit is Good for Your Business

An Unsecured Line of Credit is Good for Your Business

If you are a small business owner you may have at one point come to the realization that you were in need of some fast cash. Have you ever considered applying for an unsecured line of credit? It is indeed is a lending option that does not require the backing in the form of a valuable asset and is often an efficient way for new businesses to get working capital and get the ball rolling.

Easy Purchasing Power

Like traditional credit, unsecured lines of credit allow the holder to make purchases on whatever they need, whenever they need it. They often work the same way that a typical credit card works, which make them convenient to use. No matter what you need to buy to make your business successful, you cannot do it without funds or credit. To get the most out of your personal credit history or to start a business with little to no ready cash at hand, consider the benefits of unsecured credit. Help your small business ideas turn into a profitable endeavor and get approved for an unsecured line of credit.

How to Obtain a Line of Credit

Banks and other formal lending institutions are often the best place to go when searching for any type of business financing. However, banks are limited to the types of lending options they can offer. A commercial financing consultant, on the other hand, has a whole arsenal of possible lending options. This makes finding the right choice for your business easy. To be approved for an unsecured line of credit, it is often necessary to have at least a passable credit history, or you may run the risk of accepting loan terms with a very steep interest rate. An unsecured loan is somewhat risky for the lending institution, so it is to their benefit to pick candidates that will pay back their loans on time.

Good Credit

A good credit rating is crucial to getting a loan. Different lenders will have different criteria, but every lender will want to know your credit history and rating both personal and business. They will most likely check several sources to see what your personal credit rating is. If you have any discrepancies on your report, please make sure to clear those up before applying and most importantly always pay bills on time. Any recent late payments will reflect poorly when you apply for a loan.

Cash Flow

If you are a current business owner, banks and alternative lenders are more willing to lend to profitable businesses. If your business is struggling, then try your best to demonstrate that your company is or will be turning around with cash flow projections based on certain assumptions. Sometimes this isn’t the case and you might want to consider securing a personal guarantee to help you secure the loan.

For more information about how to secure your unsecured line of credit or how to acquire other business loan programs, please feel free to contact us at or (404) 920-4172.

Courtesy of Selden Enterprises, Inc.