Unfortunately, many small business owners today find themselves strapped for working capital due to economic conditions and the Borrowing Regulatory environment. The great recession of 2008 took a tremendous toll on many business owners, and some companies still feel the effects today.


Small business owners with bad credit find it nearly impossible to obtain traditional lines of credit for their company. Banks today will not lend money to companies that don’t have a strong credit profile. However, there are alternatives for business owners with less than stellar credit who need quick access to working capital at affordable rates.

Unsecured Business Lines of Credit Basics

NO Collateral Necessary

One of the best aspects of unsecured lines of credit for business owners is not placing precious assets up as collateral to secure lines of credit. For many new business owners with limited assets, they cannot afford to lose any assets that they deem necessary to run their day to day operations. Therefore, traditional banks offer unsecured lines of credit for companies that don’t want to risk losing their assets.

However, with no collateral to secure a line of credit, the bank assumes all of the risk in the event the business owner defaults on the monthly payment. Therefore, traditional banks place very stringent qualification requirements on unsecured loans of any kind. If a company has a less than perfect credit profile, that company will not qualify for an unsecured line of credit through a traditional bank. Consequently, many small business owners don’t bother applying for a line of credit and many times shut their doors due to a lack of working capital.


Fortunately, companies who are suffering from a working capital crunch can apply for lines of credit through AFN. Companies can access lines of credit and draw money from that credit line as needed. Small business owners will only pay interest on the money they have used, and not on the entire credit line. The amount of the credit line depends on a few factors, including the company’s sales and the total amount of time they have been in business.

Qualifying for an Unsecured Line of Credit

Again, companies must meet or exceed some very stringent guidelines in order to qualify for a line of business credit through a traditional bank. If you do not have stellar credit or your company is going through some lean times, you don’t need to waste your time applying. However, you can apply for a line of credit through AFN no matter where your company’s current cash flow position stands or what type of credit profile you currently possess.


You can obtain an unsecured line of credit if you meet some very simple requirements. First off, you need to show that you have an established business for three months. Next, you must generate an average total of $15,000 in gross monthly sales. Remember, AFN does not approve or deny lines of credit based solely on good credit. If you have an average to poor credit profile, you can still qualify for funding.

In business for at least three months

Generate an average total of $15,000 in gross monthly sales

Located in the USA & CANADA

Other Business Loan Products from AFN

AFN offers several other loan products if you don’t need an unsecured line of credit. You can apply for a business loan with a standard interest rate and term payment. Or you can apply for a merchant cash advance where you receive money up front on your future sales. If you have bad business credit, don’t let it deter you from obtaining the working capital you need to keep your business competitive.