Small businesses create the economy in the United States. There is a strong parallel between healthy businesses and robust economic growth. Small businesses are the financial engine that drives job creation, creates revenue for state and federal tax agencies, and promotes a spirit of self-sufficiency. As our nation entered The Great Recession in 2008 many small business owners felt the blow of collapsing financial markets, which completely severed the commercial apron strings that were previously available to help lead small businesses along. With no one to turn to, many businesses were forced to close up shop for good.
Large lending companies like Bank of America nearly closed off all small business funding in 2010, but some businesses found rescue in unsecured business funding. Nearly none of the traditional banking companies offer unsecured funding, so when it is discovered and available small business owners may leap at the opportunity to provide working capital to their dwindling cash supply.
What Are Unsecured Business Lines of Credit?
Unsecured business funding, or an unsecured business line of credit is cash that is available for a business to use without the requirement of collateral. It provides cash to nearly all businesses without too many questions, and without needing to pull cash out of the business. It can be classified as a type of small business loan, but it is in the form of a line of credit instead of a loan. Some of the benefits associated with unsecured business lines of credit include:
- – Convenience; you can borrow money at any time.
- – Easy fund access. Simply write a check or swipe a credit card when you need to.
- – Flexibility, especially when compared to traditional loans.
- – Flexible repayment options.
- – The ability to continually use the line of credit as long as outstanding balances are paid off.
Why Might I Need Unsecured Business Funding?
There are many instances where unsecured funding might be advantageous for your small business. Consider it as a solution if you’re finding it difficult to make payroll each pay period. If you have found special pricing available on inventory but you are limited in your purchasing ability, a line of credit can help you fund your inventory purchase. Updating or repairing equipment can also be costly, and may even be impossible to achieve without funding of some sort. Unsecured business lines of credit can provide small businesses with cash-flow friendly financing, easy access, and convenient repayment options.
Financial Solutions with Unsecured Business Lines of Credit If you’re a small business owner and you need cash to keep your business moving forward, unsecured business lines of credit can be valid solutions to your funding needs. Once you have been approved, the credit is available for you to use anytime, anywhere. Repayment is convenient and rates are generally lower than the rates on small business loans. The approval process can be painless, and no collateral is required. Keep your business in command by obtaining unsecured financing for your funding needs.