My Business Credit Lines

Determining the Best Unsecured Business Lines of Credit for Small Businesses

For businesses that require instant access to cash, obtaining an unsecured business line of credit provides immediate cash on demand. With flexible payment rates and options, there are two types of business lines of credit: traditional and non-traditional.

 

To make it simple, it is easier to explain a traditional bank loan. A traditional loan is issued by a bank and requires abundant paperwork, financial documentation, business tax returns, personal tax returns, business registration documents and bank account information.

 

Once a traditional bank loan is issued to a small business, the bank requires annual financial reviews to allow businesses to maintain their lines of credit. These types of loans are not only difficult to obtain, but they are also difficult to maintain.

 

Recent statistics show that nearly 29-percent of small business owners have reported that their lines of credit have been reduced within the past four years, while nearly one in 10 businesses have had their credit recalled early by banks.

 

Non-traditional loans are among the easiest forms of credit for today’s small businesses. These types of loans provide a business with fast business cash advance, combined with the ease of flexible payments; these loans do not have the same drawbacks as traditional loans.

 

The main advantages of a non-traditional loan is that annual FICO(R) scores are not required on an annual basis, as well as the benefits highlighted below:

 

  • Quick Cash – Small business owners have access to cash with unsecured business credit cards. This allows them to be able to use funds anywhere or anytime.
  • Credit Limits – Generally, business credit cards offer high limits, which make it easy for businesses to finance large business purchases. Many credit cards offer 0% APR interest for the first 12 months.
  • Flexibility – Business credit cards feature flexible payment options, which are preferable over fixed monthly payments that are associated with business loans. When tapping into working capital loans, businesses can pay the full amount due, a minimal portion of the balance or they pay more than the minimal amounts due.
  • Separation – Business credit cards allow business owners to separate business and personal expenses, while receiving benefits from business credit reporting. This helps improve businesses’ creditworthiness.
  • Personal Credit Protection – Small business credit cards allow businesses to better protect their credit ratings while helping to build their businesses’ credit.

 

References:

  • https://www.sba.gov/blogs/which-unsecured-business-lines-credit-are-best-your-business

My Business Credit Lines Agencies

My Business Credit Lines has over 500 Business Lenders around the United States that offer different types of business funding. We do all of the searching for you so you can have access to lenders in your area all in one place. Any of the lenders will be able to help get you the credit line you need to get your small business off on the right track to success.

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