Business Lines of Credit
Discover more about getting an unsecured business line of credit for your company! When your small or medium sized company has this it is a very valuable financial tool to have available. These unsecured lines of credit work similar to a credit card, except that it will have a huge "credit line" like a credit limit. These funds can be used by Check-Writing Access.
It seems that approval criteria for an business line of credit may be appealing for a wide variety of businesses in the United States. Since business lines of credit are unsecured, there are no collateral requirements. In addition to that lenders probably will NOT look at your tax returns, business plans or UCC filings. Though they may want to see your business financials to determine their decision to extend credit. If your personal FICO is very high they may not be required!
Usually credit lines can be obtained up to $350,000 for a no documentation loan (No Doc). However the length of time you have been in business, and business credit history as well as credit paydex score will determine the loan amount and interest rate.
Stable companies providing full documentation could receive credit lines of up to one million dollars!
Once you have a credit line you may be eligible to apply again for another one or increase your current credit line after a few months.
What is an unsecured business line of credit? These lines of credit given by various financial institutions to business entities. There are several types of credit which most companies can obtain.
Some of these include:
- Vendor credit
- Trade credit
- Bank lines or (cash credit)
Before a company can obtain a "cash" business line of credit. It is necessary that the company establish at least 5 vendor trade lines also known as Net 30. These accounts should be paid before the due date every month. This will help increase your paydex credit score. This will also improve your companies credibility.
Once this has been established, then there may be banks willing to extend you credit. This process takes time to build credit. But it is truely worth it. Once large corporate credit lines are provided to you… then you will have everything you need to grow your business. Also you will also have money available for the next opportunity that comes along for you to invest in.
If your company is a startup or has established trade lines. Let us help you get those bank lines of credit. Because, depending on "your" situation. How do you know which lender will approve your credit line the first time you apply? We know who will. So contact us.
