A Guide to Demystifying the World of Unsecured Lines of Credit
When the financial times are tough, access to capital can literally make or break your business. Your enterprise may need capital for paying bills, expanding its talent pool, purchasing new inventory, launching marketing campaigns, etc.
At that moment, you must plan to secure a line of credit.
But securing a traditional line of credit is easy only when you have something to pledge as loan collateral. However, if you’re a small business owner who’s operating on a shoestring, then things will get quite challenging in this regard. Why? Here’s the thing: Most budding entrepreneurs and small business owners have nothing to pledge as collateral, so they don’t gain access to a conventional line of credit.
That means if you don’t have collateral, you’ll stall your business’s growth. Or is it?
Well, there’s a solution—a ray of hope. It’s called an unsecured line of credit.
Understanding an unsecured line of credit
Being a debt financing option, an unsecured line of credit won’t need you to offer collateral for securing a revolving credit limit. Since these unsecured lines won’t need collateral, they generally come at shorter repayment terms, lower credit limits, and higher interest.
You’ll always have the option of opening an unsecured line of credit. This option is ideal even when you have assets that you don’t want to put on the line. That way, an unsecured line of credit won’t let you risk your assets anytime.
The ultimate benefit of an unsecured line of credit
As we’ve already mentioned, the biggest benefit of qualifying for an unsecured line of credit is that you won’t have to offer collateral. However, most people say that getting eligible for securing an unsecured line of credit is easier said than done.
But when you operate your business with a healthy credit history, you improve your chances of qualifying for an unsecured line of credit. In most cases, even businesses with less-than-ideal credit history can gain access to an unsecured credit line. So as a business owner, you must pull out all the stops to make your credit history unblemished.
Well, if your credit score is highly favorable, you will raise your chances of accessing an unsecured credit score at quite ideal rates. Plus, always remember that the amount of unsecured credit that a business can qualify completely depends on different factors including your company’s years in business, expenses, and revenues.
One more benefit: Unsecured lines of credit won’t take a lot of months to materialize. Why? For accessing this credit type, you won’t have to submit an application that has to go through multiple managers and loan officers.
Instead, an application for receiving an unsecured line of credit is fast to process because no time is spent on collateral evaluation. So in case you want to access funds really fast, finding an unsecured line of credit is the best way forward.
However, the process of securing any credit type can overwhelm even the most seasoned corporate borrowers. So in case you find opening an unsecured line of credit daunting, you need a reliable partner by your side.
That’s where One Stop Funding Solutions comes in.
One Stop Funding Solutions: Open an unsecured business line of credit fast
With 20-year experience, we, at One Stop Funding Solutions, will assist you in securing an unsecured line of credit. We have the right team of trained, FICO certified professionals who can assess your personal and business credit status so that you know your chance of quickly securing an unsecured line of credit.
Located in Atlanta, Georgia, we offer initial consultation and help you prepare your lender application like an experienced borrower. Besides offering different business lines of credit, we specialize in creative financing including small business administration loans, equipment financing, merchant cash advances, and factoring loans.
Discuss your fund needs with our financial experts today so that they can make a creative plan based on your timeline and requirements.
At One Stop Funding Solutions, we offer different lines of credit and loans and for business owners belonging to a variety of industries. So if you need any assistance in laying your hands on capital for your business, we’re your best bet.