Many small business owners have approached me over the years for help with getting unsecured business lines of credit. A good number of them have unrealistic expectations when it comes to obtaining an unsecured business line of credit. If I received five dollars for every person who said “can I just use my business credit score and history to get an unsecured business line of credit?”, I would have been a millionaire a long time ago!
The people who typically ask this question have a less than perfect credit history. They have been misinformed about obtaining unsecured business lines of credit. They believe that they can somehow obtain unsecured business lines of credit (in the millions) as long as the buy a shelf corporation that has an 80 paydex score and credit lines already attached to them.
While it is possible for large, well established corporations to get unsecured business lines of credit strictly using their business credit score and history, it isn’t usually possible for small, less established business owners. Especially not the types of people who approach me asking this question. Unfortunately, when you are a small business owners (especially if your business is a startup), your personal credit will be reviewed to determine if you qualify for an unsecured business line of credit. There is no way around it.
No collateral is required, your personal credit serves that purpose
An unsecured business line of credit is unsecured financing. Unsecured means you can obtain the funds without pledging collateral to the lender. Your personal credit pretty much serves as collateral. Lenders are simply taking your word for it when you say you will pay it back. That is why you’re required to have good personal credit to get approved for an unsecured business line of credit. Unsecured business lines of credit are not difficult to obtain, the key is having a good personal credit history.
LenCred can help you get approved for unsecured business lines of credit
If you have good personal credit and you don’t mind providing a personal guarantee to obtain unsecured business lines of credit, LenCred may be able to help you get approved. Our Funding Advisors are specialists in helping entrepreneurs and small business owners like you obtain up to $250,000 or more in unsecured business lines of credit in as little as 30 days. Contact us for more information.