Can New Businesses Get Unsecured Credit? Yes!

Unsecured credit is beneficial to businesses on a number of fronts. First, unsecured credit offers increased purchasing power. It almost goes without saying that purchasing things with credit means business owners can avoid having to take out loans for working capital, or reaching into their own business savings. Second, utilizing unsecured lines of credit is a great way to improve business credit ratings. By building business credit ratings, entrepreneurs can access larger financing programs, and at better rates. Third, unsecured lines of credit offer much more reasonable rates and spending limits, without placing debt on the balance sheets.

The Challenge Of Getting Unsecured Credit

For most new businesses, getting unsecured credit can be a challenge. For starters, most new businesses do not have credit ratings which are high enough to access unsecured lines of credit. Additionally, most traditional providers require collateral to access lines of credit. If the business misses a payment, those items which are put up as collateral become owned by the bank. Some businesses will start down the conventional road of using secured lines of credit to build up credit ratings to eventually access unsecured lines of credit. The drawback there is that the time it takes to build up credit ratings can force a business to turn to short-term loans for working capital, which compromises the progress made on building up credit ratings. Fortunately, there is a way to bypass these traditional methods and jump right to unsecured lines of credit.

Business Programs For Unsecured Credit

There are programs for unsecured lines of credit which businesses can access, even if they have been in operation for under two years. These programs do not require any collateral, nor do they place any debt on the balance sheets. Special programs for unsecured business credit also do not only look at the bottom line numbers. Taking a more holistic approach, an in-depth analysis of the business is run, taking into account things like equipment, receivables, overall profitability, and other metrics. From there, a revolving line of unsecured credit is structured, giving businesses an extra source of working capital.

Get The Business Credit You Need

If you recently launched a business, or if you own a small business but are unable to access conventional programs for unsecured credit, contact BG Capital Funding Group. Our team will work with you to understand your business, and get you the best unsecured lines of credit with zero collateral required. Call our offices to learn more.


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