What is an Unsecured Line of Credit
There is really no such thing as security for the small business owner. Even the smallest problem can put your business in danger. Of course, the biggest threat is running out of cash. For that, you can at least get peace of mind with an unsecured line of credit.
One major point to realize is that you can’t do it all alone. You have to be secure enough to ask for help. When that assistance comes in the form of an unsecured line of credit, you can reach your goals faster and succeed. Learn more to find out if this vital business tool is right for you.
The Pros and Cons of an Unsecured Line of Credit
Pro #1: You don’t need to pledge assets to get one. This is beneficial because most small business owners don’t have many assets. It’s likely that you don’t have many of those left after using them to start your business in the first place.
Con #1: If you go to a traditional bank, they will expect you to have excellent credit. Those who don’t will not stand a chance of obtaining any type of instant business loan from a bank. All commercial banks will require collateral.
Advantage #2: It can help you manage the ups and downs of small business operations. Every business experiences account receivable gaps and sales slumps. That’s not to mention unforeseen events like equipment breakdowns and natural disasters. This essential funding method is a great source for emergency business financing.
Disadvantage #2: Unfortunately, having such quick access to business cash may lead to the temptation to spend frivolously. As a result, you will take on too much debt and be worse off than before. It’s crucial to have a plan before you withdraw the money from your line. More importantly, you must have a strategy for how you will pay it back.
Benefit #3: The freedom to get quick business funding on your terms. You can’t beat the flexibility of a line of credit. It allows you to withdraw only what you need and pay it back all at once or a little at a time.
Drawback #3: Regrettably, it is easy to choose the wrong financing company to get your line of credit. Today, many companies are popping up promising the moon and the stars. Too often, these companies trick you by luring you in with unbelievable terms and then they turn the tables on you. You will be left paying far more than you expect.
Where Should You Go for an Unsecured Line of Credit?
When you get a line of credit from Financing Solutions (www.financingsolutionsnow.com) it is an unsecured line of credit. They do not require personal collateral to back up the line.
Financing Solutions is one of the leading providers of fast cash for small businesses. They have an A+ rating with the Better Business Bureau because they have a reputation for satisfying their customers, who return to them year after year for immediate business financing. You can trust them to give you financial protection for your business.