Unsecured Lines Of Credit And How Your Business Can Get It

Unsecured Lines Of Credit And How Your Business Can Get It

It is essential for new businesses to get access to unsecured lines of credit. Unsecured credit adds to a company’s purchasing power, and it also allows businesses to build up their credit ratings, which can open doors to better financing opportunities at better terms and rates. However, many new businesses face major challenges when trying to get unsecured lines of credit by following conventional paths. Fortunately, there are alternative methods for accessing unsecured credit, and more business owners are using them instead of traditional banks and credit providers.

The Challenges Facing New Businesses

Most new businesses do not start out with healthy credit ratings, and that is no fault of their own. But when they apply for unsecured credit, the results are usually less than favorable. The most straightforward (and disappointing) response is a flat out denial for unsecured credit. The second is having the application deferred to an offer of secured credit, which has a low spending limit which is directly tied to the amount of money in the business bank account, and can be upgraded to an introductory unsecured line of credit at a later date (usually six months to a year). The third option is an offer of an “introductory” unsecured line of credit, which typically has a low spending limit accompanied by high interest rates.

Overlooked Sources Of Unsecured Lines Of Credit

Unsecured lines of credit are not solely available through banks and other traditional credit institutions. Commercial lenders also have the ability to give new businesses access to unsecured credit, without any of the red tape involved with more conventional methods. The major difference is that banks are looking at the bottom line numbers, and consider most new businesses – those in operation for under two years – to be too risky to grant lines of credit. Commercial lenders, on the other hand, understand that our economy’s strength is with small and new businesses, and giving them access to unsecured lines of credit allows them to flourish. In fact, there are special programs available to grant new businesses access to unsecured lines of credit, regardless of how long they have been operating. These programs focus more on profitability and sales, rather than the criteria used by traditional sources, such as banks.

If you recently launched a new business, and would like access to an unsecured line of credit starting at $25,000 – contact Vantage Commercial Capital at 913-543-4242. We work directly with entrepreneurs to help them grow their businesses, get access to unsecured credit, and ensure long-term success.