Business Owner’s Guide to Unsecured Business Lines of Credit

Business Owner’s Guide to Unsecured Business Lines of Credit

The biggest advantage of unsecured business lines of credit is that they can be obtained quickly without collateral. It’s easier to get a line of credit if your business has a good credit score, but there’s still some steps you should be taking to confirm you’re able to get what you need from your arrangement. Follow this basic guideline to make qualifying for an unsecured line of credit easier.

Put Yourself Out There

One of the very first steps of owning a business is to have it officially registered. This allows your business information to be accessible and relevant for your customers, partnerships and possible lenders. Register for free with a credit agency like Dun & Bradstreet to get your identifying number. It’s a good idea to register with more than one agency to get the most exposure.

Have a Good Relationship With Your Bank

Though it may seem like a given, being on good terms with your bank and maintaining a professional relationship with its employees can go a long way. Make keeping a good credit history a main priority so you don’t have to worry about roadblocks later. When it comes time to apply for your unsecured business lines of credit, make sure you’re sufficiently prepared with all the documents your bank will need to see your business clearly and make an informed decision.

Create a Strong Business Plan

Having a strong business plan in writing is not only helpful to you as the owner trying to meet goals, but it also puts sheds a positive light on your professionalism and good intent to meet requirements. Go above and beyond with these smaller steps, and be more organized than what’s expected. It should be a fairly easy call for your bank to make that you’re in good standing and deserving of a credit line.

Show Your Worth

If you’ve had successes meeting your goals, make that clear in your proposal. There’s nothing wrong with pointing out that you’ve been profitable and consistent meeting payment deadlines. Before anyone else can believe in your business and be willing to invest in it, it has to be apparent that you have faith in and are commitment to your own abilities. Build your good credit history so you can show it as proof later and get the deal you want.

Getting unsecured business lines of credit is a great option if you’re not keen on using collateral for a loan. Put in the work early to receive the benefits of such an arrangement when you really need it.

 

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