Unsecured Business Lines of Credit that Will Be Best for Your Business
Business lines of credit come in many shapes and sizes. Whether you’re looking for a way to grow your business fast, or in need of a flexible lifeline in case of emergencies, discover how a line of credit can keep your business afloat during financially trying situations, as well as the best options for your particular business.
First, what is an unsecured business line of credit? Unlike secured credit, you won’t need to put up any assets as collateral in order to use this credit option. Because of this, you’ll typically need a higher credit score and more reliable financial history.
These lines of credit offer far more flexible spending than a traditional bank loan. You won’t need to wait to be preapproved for each time you spend on your line of credit. You also won’t have to wait for an application to become approved and funds to be dispersed. They work just like a credit card, giving you instant access to predetermined amounts of capital with predetermined interest rates and monthly payments.
A non-traditional line of business credit offers high credit limits, particularly if you have a large and successful business financial history. Your business line of credit, or credit card, will give you the option of paying it off each month or paying interest on the amount due, just like a personal credit card. It’s not at all linked to your personal account, so you’ll be able to rack up business credit and improve your credit score with this line of credit.
More traditional lines of business credit can often come with other advantages, they’re typically more difficult to obtain. You’ll be able to write checks with your traditional line of credit, which offers a whole new level of flexibility when it comes to making monthly payments.
Many of the differences between traditional and non-traditional credit vary depending on the lending institution. Shop for your line of credit carefully, and be sure to read the fine print regarding interest rates, monthly payments and restrictions regarding the use of your credit.
Regardless of the option you choose, your business can receive the financing it needs, fast. Don’t wait around for an unresponsive loan or risky secured lines of credit. Choose a flexible and responsive financing option for your company in order to respond to anything that may come your way. From emergency expenses to sudden investment opportunities, you’ll be ready.