Unsecured business lines of credit have been around for many years, but many businesses are unaware that they exist. Although unsecured lines of credit may seem like mythical financial options that no one is really able to obtain, they are actually real and can be obtained fairly easily as long as your credit history qualifies you to receive one. A business line of credit is ideal for companies who need short term project financing, but don’t have a lot of collateral that is often necessary in order to receive a traditional loan. Thankfully, companies that are unable to qualify for a traditional loan can rely on unsecured lines of credit to help them meet their financial obligations.
What Are Unsecured Lines of Credit Used For?
Companies use unsecured business lines of credit for many things, including short term project financing needs, working capital, debt management, start-up funding, and much more. These lines of credit are great options for practically anything that is not considered a long-term project (12 – 18 months generally). If your company has short-term project financing needs, an unsecured business line of credit is a great option for meeting those needs.
While rates may differ for lines of credit depending on the lender, they are typically somewhere between 2% – 8% over prime. However, it is important for you to check the current interest rates with various lenders before you decide which lender to trust with your short term project financing needs.
How to Apply
When it comes to receiving unsecured lines of credit, you have two main options: You could hire a trusted financial company to help make the process as easy as possible for you, or you could try to do it on your own. It can be confusing to navigate your options, especially when you don’t have the collateral you need to receive a traditional loan, and a professional financing company can do all of the difficult legwork so that you don’t have to. As a business owner or manager, you already have enough stress and responsibility on your plate, so why not let someone else figure out how to get an unsecured line of credit for your short-term project financing needs?
If you don’t know up-front how to locate a lender that will offer business lines of credit without requiring full income documentation from you, or if you don’t know which lenders will not report your business loan on your personal credit report, then you should seek out a trusted financial company to help you secure a line of credit for your business needs.