There are many reasons to fund your startup business using unsecured business lines of credit. One of the best reasons to fund your startup business using unsecured business lines of credit is the fact that they can be the easiest type of capital to obtain during the early stages of your business. In my years of experience as a startup business funding expert, I’ve found that you have a better chance of obtaining unsecured business lines of credit for a startup than any other type of debt financing. All you need to have is a good, established personal credit history. If you have a well established personal credit history, there are 3 reasons why you may want to fund your startup business using unsecured business lines of credit–
- 0% Interest Offers – There are many lenders that offer unsecured business lines of credit at 0% interest for the first 6 to 12 months. That means you can use the money interest free during that time period. That’s ample time to pay for important business expenses (that will generate a return on your investment), without having to pay for the money you borrow. Who wouldn’t want to borrow money (for free) for a period of time to grow their business?!
- Build Your Business Credit – Obtaining unsecured business lines of credit will help you separate your personal credit from your business credit. Gone are the days when you will have to use personal credit cards to fund your business. Unsecured business lines of credit are specifically designed to cover business expenses, and depending on the lender, may also help you build your business credit history. A good business credit history may also increase the number of funding options you can explore for your business as it grows.
- Increase Your Business Revenue – Unsecured business lines of credit can be used to cover any business expense, including the expenses that will generate a return on investment for your business. Unsecured business lines of credit to pay for supplies, inventory, or marketing and advertising, etc— just about any business expense that will generate revenue.