Unsecured business lines of credit is my favorite type of capital for all business types. Whether your business is a startup or existing business, unsecured business lines of credit can work well for you. The small business funding experts here at LenCred have helped with thousands of business owners in a variety of different industries secured unsecured business lines of credit to start and grow their companies. If it’s one thing we know about capital, it that unsecured business lines of credit may be the right way to fund your business. Here are 3 ways to know if this type of funding is right for you:
- Your Business is a Startup (or Established) – If you’re business is a startup, you will find that raising capital (from debt financing sources) can be quite difficult. This is because startups have no track record (i.e. sales revenue). However, you can still qualify for unsecured business lines of credit even if your business has no sales revenue. Established businesses can qualify as well.
- Your Business is in a High Risk Industry – If your business is considered “high risk” by most lenders, unsecured business lines of credit will most likely be the only type of capital your business will qualify for. For example, real estate investment is considered a high risk industry and is placed on most lenders “restricted industries list”. If you find that your business industry keeps showing up on lenders restricted industries lists, you may want to consider applying for an unsecured business line of credit. (Businesses in low risk industries can also qualify).
- Your Credit is Exceptional & You Don’t Want to Pledge Collateral – This is by far the most important aspect of getting an unsecured business line of credit. Since the financing is unsecured, the lender will not require you to pledge collateral. Since you are not required to pledge tangible collateral, the lender will require you to provide a personal guarantee to secure the financing. That means they will check your personal credit history and use it to determine your approval (or denial). If you have exceptional credit that is well established (5 years old or older) with no derogatory or delinquent accounts, you may have a good chance at qualifying for an unsecured business line of credit.
Still not convinced that unsecured business lines of credit may be right for your small business? Contact us here at LenCred and we will help you figure it out. The process of obtaining unsecured business lines of credit can be easier than many other types of financing options. If you want to simplify the capital raising process, working with LenCred to obtain an unsecured business line of credit may be your best bet. You could qualify for up to $200,000 (or more) in unsecured business line of credit financing if you meet our lender requirements.