If you own a startup business in New Jersey, Lencred can help you leverage your personal credit to obtain an unsecured business loan. Leveraging your personal credit to obtain funding for your New Jersey based startup business does take some preparation, but it can be fairly simple if you have managed your credit well. Obtaining an unsecured business loan is reliant upon you having a good personal credit history. This is because lenders that offer unsecured business loans do not require you to pledge collateral to qualify. They will use your personal credit history as “collateral.” Essentially this means they will review your personal credit history along with proof of income to determine if you will be approved or denied for an unsecured business loan.
Your Debt to Income Ratio is Important When Applying for an Unsecured Business Loan
To have better chance of getting approved for an unsecured business loan for your New Jersey based startup business, you’ll need to keep your debt to income ratio pretty low. This means your total debt shouldn’t be more than 30% of your total income. The higher amount of debt you have in comparison to your income, the higher your debt to income ratio will be. Lenders will see this a red flag when applying for an unsecured business loan. High debt to income ratios usually mean you have taken on more debt than you can afford to pay back in relation to your income. Lenders need to feel confident that you have the capacity to pay back the unsecured business loan on time. Be sure you have the income to service the debt and you’ll be all set.
Apply for an Unsecured Business Loan Today, LenCred Can Help
LenCred can help you obtain up to $200,000 or more in unsecured business loans and/or unsecured capital for your startup business in New Jersey. If you are ready to leverage your personal credit to obtain funding for your business, please contact us to get started.