Why Business Lines of Credit Without Personal Guarantee Are So Valuable (Video)
To start a small business, you begin with your ambition and vision but in order to keep being successful, many businesses need a business lines of credit without a personal guarantee. A business credit line with no PG is valuable because if your business fails, you don’t want your personal assets to be at risk. All commercial banks require a personal guarantee for a business line of credit but nowadays there are private financing companies that don’t require one. Let’s talk about why PGs are often required and what options you have.
First, before we get into the details of why a bank requires a personal guarantee for a small business line of credit and Financing Solutions doesn’t, you should know that Financing Solutions is an A+ & 5 stars rated BBB direct lender. Financing Solutions has been in business since 2012 and has an excellent reputation.
Financing Solutions is a leading provider of small business credit lines with no personal guarantees. Our business credit line also does not require any collateral. The approval amount is based on the cash flow of your business.
We are making the decision to approve your business line of credit based on our experience in dealing with thousands of small businesses. We want you to be successful and we know that a business line of credit that you can afford is a valuable business tool.
Unlike a bank credit line, the FS credit line costs nothing to set up, nothing when not being used, and is inexpensive when used. If your business is doing at least $200,000 per year in revenue and your personal credit score is 650 or greater, you will probably be approved.
The no doc required online application only takes 2-minutes to fill out and you will have an offer letter in hours to consider. We do not run any credit checks for your offer letter. This is the fastest way for you to get a hassle-free, small business lines of credit without personal guarantee so you can get back to work on building your business.
Why Banks Do Not Offer Business Lines of Credit Without Personal Guarantee
A commercial bank receives a lot of its funding from the government and because of this, the bank is required to have a personal guarantee on many small business loans and lines of credit. The personal guarantee is important because if you default, the bank can sell your personal assets to recoup the losses. Any business with under $10 million in yearly revenue will be required to provide a personal guarantee because banks are regulated by the federal government. You are never going to get a bank to not require a PG for any small business loan.
Do Other Lenders Offer Business Credit Lines with No Personal Guarantees
Very few companies are willing to offer a line of credit to small businesses but Financing Solutions is owned, not by people who worked on Wall Street, but by people who actually started their own businesses (9 of them actually). We get what a line of credit can do for your company and we believe that we are excellent at determining what your business can and can not afford.
Completely separating your personal credit from your business credit is a fundamental part of protecting yourself and your business. Financing Solutions does not require personal guarantees nor collateral for their line of credit product because we are not funded by the federal government but by private funds. It is our money we are willing to risk and you are the beneficiary of that.
A business line of credit from Financing Solutions will give you quick and easy access to business capital when and if you need it. This is an ideal way to manage uneven cash flow, handle emergencies and take advantage of new opportunities. More importantly, the time to set up your line of credit is when you don’t need it.
Best of all, it is easy to get the business credit line in place. Once you decide to move forward on the offer letter we will ask for some simple, easy to get, documents. Once your paperwork is in, it takes 48-72 hours for the line to be ready to be used but there is no requirement to use the credit line. The credit line stays in place for 12 months and renews easily yearly.
Relationship Banking Is Back
In these days of mega-corporations, business owners are looking for a personal relationship with a bank. When dealing with a bank, clients want to know that their business matters. The banks that do this successfully are the ones that thrive. We believe Financing Solutions has that personal touch.
Our owners take an interest in you and your business. Either Stephen Halasnik or Keith Giovannoli will give you a call prior to setting up your account. We promise you that everyone you speak with at Financing Solutions will be knowledgeable about your business and will be straight with you.
Over the years of building our companies, we have personally dealt with numerous banks. We know that business owners don’t have the time for the runaround. That is why our application takes 2 minutes to file out and requires no paperwork. You will get an offer letter in hours, not weeks or months like with a bank. If you wish to move forward we will ask for backup documentation and then your line will be set up. It’s the way we wish we were treated and that is what we know you want.
The benefit of a commercial bank is that it might be cheaper but not always. It really depends on how much you plan to use your business line of credit. However, there is a lot of advantages in the fact that Financing Solutions provides an unsecured small business line of credit with no PG while a commercial bank will require collateral, personal guarantees, and long turnaround times.
The fact of the matter is that once you start investigating about getting a business line of credit with a commercial bank you will learn how challenging it really is. At Financing Solutions, we personally had experiences with that and created a better way.
Fill out our simple, 2-minute, no-obligation line of credit application today and see what you qualify for.