When businesses need fast access to cash, one outlet they often overlook is that of an unsecured business line of credit. Why is this? Well, for starters, acquiring funds via this way sometimes seems like it’s too good to be true. On the bright side, however, sometimes in life, something too good to be true really isn’t. Instead, it’s readily available for those who qualify and are ready to take on the simple application process.
What is an Unsecured Business Line of Credit?
The most important thing to remember about an unsecured line of credit is that no collateral is needed to secure the loan.
For the most part, an unsecured business line of credit can be tapped into for funds reaching as far up to $500,000 or more more. The exact amount that a business will qualify for will be determined by the owner’s personal credit profile as well as the profitability of his or her company. A start-up company that has an owner with good credit can expect to qualify for $25,000 to $100,000 worth of credit, even without any established revenue. With established revenue exceeding $1,000,000, it then becomes possible to qualify for an unsecured line of credit exceeding $500,000.
The Benefits of an Unsecured Business Line of Credit
A small business loan can be somewhat difficult to obtain. Worse yet, it can be considerably time-consuming. In fact, there are ten main categories included within a small business loan application, including:
– Personal background check
– Income tax returns
– Business credit report
– Legal documents
– Business plan
When applying for an unsecured business line of credit, simplicity is valued and an approval decision can be obtained in less than 24 hours. A business won’t have to provide all of the above mentioned information. Instead, with a look at the owner’s credit rating, as well as the profitability of the company, a decision can be made quickly.
Another great benefit gained from accessing an unsecured business line of credit is that the acquired funds can be used in any manner the business owner sees fit. With this freedom, it becomes possible to infuse the funds in the areas that they are needed the most, and more importantly, when they are needed the most. Whether it be a need for startup funding, working capital, employee wage payouts or debt management, money accessed through a business line of credit can provide the much-needed flexibility many business owners are looking for.
Something to Keep In Mind
When it comes to using an unsecured business line of credit, it is of the utmost importance to view the funds as a short-term financial solution. In fact, it is usually best for a business to pay back the borrowed funds in as little as 12 to 18 months.
AFN understands the difficulty that can be accompanied with accessing traditional business loans. Through hassle-free consultations and applications, AFN can help any business access the funds it is in need of. Even without a perfect credit score, through AFN’s close relationships with lenders, it is still possible to acquire a loan with decent rates. The best way to see if qualification can be obtained is to contact AFN for a no-obligation quote. Best of all, AFN will carefully assess a business’s financial status and needs; thus, allowing it to connect the company with the most appropriate unsecured business line of credit lender.