Ways to Find a Business Line of Unsecured Credit:
Businesses are often looking for ways to find a business line of credit. For some businesses without a long credit history or for those who don’t qualify for a loan the only way to go is a business line of unsecured credit. However, most business lines of credit that are unsecured will require the business to put up some form of collateral in return for the loan to be made.
Collateral will make the lender that is providing you the loan more secure that they are going to get a return on their money. If you as the business fail to pay the lender will take the collateral as payment instead.
What Do I Do if I Don’t Have Collateral?
The best way to go if you don’t have collateral is a business line of unsecured credit. However, these loans can be trickier to come by. Unsecured loans are low-maintenance and easier to keep around and they also the interest rates tend to be lower on unsecured loans than they are on traditional loans as well. Unlike a business card, these generally do not require you to have a predetermined business credit score or history of on-time payments to get a line of unsecured credit.
Moreover, the other clear difference between business lines of unsecured credit and business cards is that there is no card to use when you have an unsecured line of credit. You are able to use your allotted sum of money as you see fit and when you see fit.
How Business Lines of Unsecured Credit Helps You:
Of course, most business owners would much rather open an unsecured line of credit as opposed to a secured line of credit as they don’t. The only catch to the business line of unsecured credit is that companies usually have to have a very high income to be able to guarantee that they can afford to pay the loan back over time.
So, if you have a relatively high monthly or annual business revenue and are able to get a business line of unsecured credit without having to pay the higher interest rates or put up property as collateral, it may be something worth considering. It can help your business get the cash loan you need while saving money in the process.
For more information on determining if an unsecured business line of credit is right for you please feel free to contact us at BizCap Commercial Finance for further assistance.