Making Sense Of A Business Line Of Credit

Fast and Flexible Unsecured Business Line of Credit

Business Lines of Credit are a very popular option among business owners these days. The question many people ask is what are the differences between an Unsecured Line of Credit and a Secured Line of Credit.

The simple answer to this question is that a Secured Line of Credit involves putting up, in many cases, property and equipment for collateral, or receivables on accounts. This type of loan has an asset tied to it that can be taken away in the event of a default. To obtain a Secured Business Line of Credit you will need to have very good credit, and the process normally takes 60-90 days to complete. Because there is an asset tied to this loan, there is less risk involved for the lender, which means lower interest rates and longer terms.

An Unsecured Line of Credit does not require any collateral to be tied to the loan, it is a revenue based loan. You also need to have very good credit to obtain this loan, and at least an average of 25k per month revenue. The terms will range from 6-18 months, and interest rates will be a little higher because there is more risk involved. This is the more popular option of the two, mostly because it can be completed in 7-10 business days, there is no collateral involved, and amounts can go up to 250k. Since this is the more popular option of the two, we will discuss the benefits and qualifications for an Unsecured Business Line of Credit.

With this unsecured line of credit, you draw from it as much as you need at the time, and  only pay for that portion that you are using. You can draw more as often as you like up to your credit line limit, and as you repay each draw, you can continually draw more. Every 4-6 months your account will be reevaluated for higher line of credit amounts. If you decide to pay off your balance early, most lenders only require the principal amount to be paid, saving you money on interest.

4 Benefits Of an Unsecured Business Line of Credit

• Flexible Revolving Line:  You can have access to as much as 250k, and draw as much as you want from your limit. As you make your payments, your credit line replenishes.
• No Hidden Fees:  You do not have to pay any fees to open or continue your line. There are no early payoff fees, monthly maintenance fees, and never a fee if you decide to close your line of credit.
• Credit Lines Grows With You:  No matter what size, or what stage your business is in, at Small Business Capital US, we get you the line of credit that fits your business now, and support your business by getting increases as you grow.
• Funds At The Click Of A Button:  Once your line of credit is set up, all you have to do is log into your account, click on a button, and the funds are in your bank account immediately. You never know what's going to come up that requires quick funds. With this line of credit you can have peace of mind if the fact that you have money available on demand.

Minimum Qualifications for an Unsecured Business Line of Credit

• 620+ FICO Score.
• 6+ months in business.
• $25k monthly revenue
• $1k average daily balance on bank statements.

Documents Required To Apply

• One Page Application
• Last 3 months of business bank statements.
  
• Last 3 months of merchant credit card statements (if applicable).
  

At Small Business Capital US we provide a variety of business loans including SBA, Unsecured Business Lines of Credit, Secured Lines of Credit, Term Loans, Merchant Cash Advance, Startup Loans, and Commercial / Residential Loans. To see which loan, or loans your business qualifies for, just request a free quote below. 

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