Obtaining an unsecured business line of credit for your business in the next 30 days or less can be simpler than you think. Obtaining any type of financing for your business, including unsecured business lines of credit, can be simple if you know what it takes to get approved. If you know what it takes to get approved, you’ll be able to better prepare yourself for an approval. Here’s several ways you can prepare yourself to get approved for an unsecured business line of credit in the next 30 days or less–
- Build Your Personal Credit History – Getting approved for an unsecured business line of credit requires that you have a well established and well managed personal credit history. The ideal candidate for an unsecured business line of credit is someone whose credit history is at least five years old. In addition, the ideal candidate should have at least two personal credit cards in their name (totaling $5,000). Those personal credit cards shouldn’t be more than 30% utilized. Your credit history should also be free of any derogatory or delinquent accounts and excessive inquiries in the last month. These are some of the most important basic approval requirements. If you can meet these requirements, you have a greater chance of getting approved for unsecured business lines of credit.
- Gather Your Supporting Documentation – Most unsecured business line of credit lenders don’t request supporting documentation such as your articles of incorporation, proof of tax ID, personal and/or business tax returns, personal financial statements or bank statements, etc. However, it’s always good to have this information on hand in case a lender asks for it. It may also be needed for other financing options you can explore if unsecured business line of credit isn’t a good fit for you.
- Seek Expert Assistance – Working with an expert who is well versed in helping entrepreneurs and small business owners obtain unsecured business lines of credit can be very beneficial to you. The advisors here at LenCred specialize in unsecured business lines of credit. They will be able to analyze your personal credit history to determine if you qualify and recommend the best lenders to apply to. You have a better chance of getting approved the first time you apply when you work with experts (like the advisors at LenCred), who can educate you and steer you in the right direction.