Top Unsecured Business Lines of Credit for Your Small Business Venture
No matter how long you have been in business, or how new your small business venture might be, it is vital that you have access to capital at all times. If you are relying on direct sales to generate all the cash flow you will need, you might be disappointed. This is where unsecured business lines of credit can help. What should you know about them?
If you go the traditional route to obtain unsecured business lines of credit, prepare for disappointment. This method usually involves approaching a bank or other traditional financial institution, providing them with reams of documentation, and then likely being denied. Even if you are approved, you will have to go through an annual review to maintain that line of credit. Sadly, almost 30% of small businesses surveyed by the National Small Business Association reported having their lines of credit reduced by lenders.
Traditional unsecured business lines of credit are not your only options. You can also obtain nontraditional lines of credit through a variety of different sources, although unsecured business credit cards can be some of the best options for your needs.
Why consider a nontraditional funding source? Actually, there are plenty of reasons. Most offer access to cash quickly, almost instantly. You’ll also find that unsecured business lines of credit have higher limits where, and there’s a great deal more flexibility offered. Finally, you get personal credit protection and true separation between business finances and personal finances, combined with reporting to the credit bureaus to build your business credit score.
Not sure which option is right for your needs? We can help you find the right path. Get in touch with Desert Star Commercial Consulting today to learn more about how we can help your small business venture succeed.