Obtaining Unsecured Business Credit Lines

It should come as no surprise to anyone that today's small business owner is facing many financial challenges. With the state of our current economy, it is becoming more and more difficult to obtain loans to either preserve or to grow a business. How many businesses have you seen today that have closed up or downsized because of the economy? So, what is a business to do to improve its financial health? Outside of a traditional loan, what is another source of funding for your business worth considering? Well, you may want to look into an unsecured business line of credit. An unsecured business credit line will allow you to have funds available without putting up your personal assets as collateral. These funds can be used for helping you stay afloat until the economy improves, or perhaps even grow your business.

For those who have never obtained an unsecured line of business credit before, let me explain. This is basically a loan for your business that you are able to obtain without having to personally guarantee it. The interest you pay may be higher than a normal interest rate. The question you'll need to ask yourself is, "will this line of credit, even with a higher interest rate, help my business and will I be able to make my payments on time". If the answer is yes, this may be the right financial tool for you. Sometimes unsecured business credit is difficult to obtain. Lenders require your business to have a great credit score. Don't give up. Do your research, there are ways to build your business credit score. Also, don't rely on just one bank. You may find that different banks have different criteria to obtain an unsecured business credit line.

Be sure to make all payments on time. The better your track record, the higher your business credit score will go. This higher credit score could translate into lower interest rates and/or higher credit limits in the future.

For more information on unsecured business credit, visit Unsecured Biz Credit.com [http://www.UnsecuredBizCredit.com], a web site that provides individuals and small businesses with information to build their credit.

Article Source: Ron Lerman, Business Credit Advisor

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