What is an Unsecured Line of Credit and How Can a Business Get One
Billionaire Aristotle Onassis once said that the secret to success is to know something no one else knows. Some things that are not a secret which every business owner should know is what is an unsecured line of credit and how can a business get one.
When you are busy with the day to day task of keeping your business afloat, it’s difficult to find the time to research the multitude of finance options and the processes involved to apply for them. Once you understand more about an unsecured line of credit, you can decide if it is right for the unique needs of your business.
What You Need to Know about an Unsecured Line of Credit
A secured credit line is one in which the borrower uses an asset, usually a home or business accounts receivable, as collateral to secure the cash loan for your business. However, with an unsecured line of credit, you will not be asked to provide collateral.
Still, a bank will require lots of other things before providing you with this type of small business financing. You will be asked for both your personal and business tax returns, business registration documents, bank account information and more.
Additionally, most banks require you to have a credit score of at least 700. Even after all this, you would still have to submit to an annual financial review in order to maintain the line.
If Banks Are Not the Answer, Where Can a Business Get an Unsecured Line of Credit
The truth is that banks will always require a secured line of credit whereas alternative financing companies like Financing Solutions (www.financingsolutionsnow.com) will give businesses an unsecured line of credit up to $150,000. This can be a lifeline for businesses seeking working capital, emergency business financing or help with a temporary cash shortage.
In addition, alternative lenders like Financing Solutions are built for speed and are used to approving small businesses that banks won’t touch. They work with many types of businesses and can help you even if your credit score is not perfect.
The entire application process only takes about an hour. Once approved, you can have the money in your account in less than 48 hours.
How to Make Your Business a One Stop Shop
You see them popping up everywhere. Super stores that sell everything from groceries and school supplies to housewares and electronics. Need tires? They’ve got that, too.
The advantages of being a one-stop-shop include getting a jump on the competition. It can also help to increase profitability and encourage customer loyalty. Here are a few ideas to make it work for your business.
One thing to do is learn what your customers will need next and be the one to provide it. For example, you may own a restaurant and find out that customers often go to a nightclub after they leave. In that instance, you can look into adding live entertainment at your establishment.
You can also partner with another organization to share resources and client lists. For instance, if you are in the hospitality industry, it would make sense to join forces with tour guide providers or rental car companies and recommend each others services.
Of course, growing your business in any way takes money and you can get that from Financing Solutions. They can be your one-stop-shop for alternative business funding.