Business Credit: Improving Ratings Without Compromising Finances

Business credit is what allows entrepreneurs to get the financing they need also impacts the interest rates they have to pay. The better the business credit ratings, the more financing that is available, and the lower the interest rate on many agreements. However, building business credit ratings can be a very long road, unless you know what you are doing.

Secured Business Credit

Many businesses start of building their ratings with secured lines of credit. Like secured personal lines of credit, the financing available against things like assets and receivables. Accessing a secured line of credit does help to gradually improve business credit ratings. However, interest rates and be high for new business owners, and the time it takes to build up credit ratings to transition to unsecured credit can be many months, if not years.

Unsecured Business Credit

Unsecured credit is a very broad category, in the world of business. There are conventional likes of unsecured credit, and every entrepreneur is made aware of those, the second the business gets a tax ID. Offers jam the mail box from credit providers with “special introductory rates” for unsecured business lines of credit. The devil is in the details, however, because the spending limits on those unsecured lines of credit are usually very low, and the interest rates tend to skyrocket after a short period of time.

Credit Lines For New And Small Businesses

There are also unsecured business credit lines designed specifically with new and small businesses in mind. These lines of credit do not require any collateral, and are structured around a number of factors, including the overall profitability of the business. Businesses only need to pay on the amount used, and interest rates are kept low to encourage growth and success. Additionally, accessing these special lines of credit allow businesses to build up their credit ratings, so they can get approved for larger financing down the road.

Learn More About New And Small Business Credit Lines

At BG Capital Funding Group, we provide working capital solutions for new and small businesses throughout the country. We will work with you directly to structure an unsecured business credit line to fit your needs. Our affordable and flexible business financing programs help new and small business owners when traditional loans and lines of credit may not be in the picture. Contact our team today and put our expertise to work for you.


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