Unsecured Business Lines of Credit for Emerging Entrepreneurs

For entrepreneurs, it is essential to have access to unsecured lines of business credit. Unfortunately, banks and other traditional lending institutions are reluctant to offer unsecured lines of credit to businesses unless they already have impeccable credit ratings and a long financial history. This leaves many business owners using personal credit cards to cover business expenses, which can put their own finances in jeopardy. However, for entrepreneurs who want access to unsecured credit lines, there are two viable options.

The Traditional Method for Unsecured Lines of Credit

Most new businesses start off being eligible for secured credit. Much like with personal finances, secured credit is tied to the amount of money the business has in the bank, and has a low spending limit. So long as new businesses regularly access this secured credit and keep ample money in the business bank account to cover the balance due, they will eventually graduate to unsecured lines of credit. It should be noted that introductory lines of credit for new businesses can still have relatively low spending limits, and relatively high interest rates, which can be negotiated down after a certain period of time. While this is a conventional path to unsecured credit, the journey is not exactly the fastest.

Commercial Finance Solutions for Entrepreneurs

Select commercial finance professionals can extend unsecured business lines of credit to new entrepreneurs with companies in operation for under two years. As opposed to traditional lending channels, unsecured business lines of credit through a commercial finance company are based on the current credit standing combined with the overall profitability of the business. For most new businesses, unsecured lines of credit can start at $25,000 and up. For new businesses with higher annual revenue, the credit lines can be upward of $100,000. These commercial financing solutions can be issued as corporate credit cards or as individual lines of credit. This gives emerging entrepreneurs the spending power they need to acquire equipment, supplies, and anything else, while increasing their business credit ratings.

If your company would like the extra purchasing power provided by unsecured business lines of credit, contact Davis Commercial Finance at 916-412-5577. We specialize in helping new business owners get the funding they need to launch their companies and maintain unparalleled success for the long run.


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