Unsecured line of credit gives you financing when you need it most.
Unsecured line of credit allows for your business to receive financing without the use of collateral such as an office space, office equipment, or a company car. An unsecured line of credit is best used by a business with a cash flow problem. This means that more cash is going out, and less is coming into the business. Most new businesses will run into this problem at some point in time.
Often times the need for instant cash for your business will arise, so it will be important to make sure that your business can qualify to receive an unsecured line of credit. The first step is to make sure that your business has established business credit scores. Without established business credit scores it is extremely likely that your business will get turned down for this line of credit. Since this line of credit is unsecured a lender is taking more of a risk by loaning the money so they will want to see some positive business credit history. This credit functions just like your personal credit scores.
To establish business credit you will need to make sure that you have business loans and other lines of business credit that report your credit history to the Small Business Financial Exchange. Our unique Business Finance Coach shows you step-by-step how to build your credit, and helps you find quality lenders that will report your credit activity.
An unsecured line of credit is the perfect financing for your business to make sure you make payroll on time, pay your vendors on time to avoid penalties, or increase marketing initiatives to bring in more business.