Unsecured Lines of Credit and Business Loans
Additional funding can be obtained through unsecured lines of credit, business cash advances, fast merchant cash advances, and small business loans. These options provide quick and easy solutions for businesses facing financial crunches.
Qualifications for Small Business Lines of Credit
A small business may obtain a line of credit by meeting certain underwriting qualifications. These credit lines include:
- Small business microloans
- Alternative financing options
- Unsecured and secured business lines of credit
- Restaurant and QSR financing
- Bar financing
- Merchant cash advances
- Hard money loans
- Collateralized and uncollateralized asset-based loans
- SBA 7(a) programs
- Corporate credit cards
- New business credit cards
These financing options are available to businesses that operate on cash, checks, or other sources of revenue.
Funding Qualifications
Credit Card-Accepting Businesses
To qualify for funding, businesses that accept credit cards must have:
- A minimum average of $2,500 in monthly credit card sales.
- At least four months of credit card statements available for review.
- A business history of at least six months.
Troubled business or personal credit histories are not automatic disqualifiers. Additionally, business owners may choose between a portion of credit card sales or a fixed payment method for repayment.
Cash and Check-Only Businesses
Cash and check-only businesses may qualify for financing if they meet the following criteria:
- An average of at least $10,000 in monthly sales.
- At least six months of bank statements available for review.
- No existing bankruptcies.
- Current rent and mortgage payments.
Payments are fixed and can occur on a daily, weekly, or monthly basis.
Medium-Sized Business Financing
For medium-sized businesses, funding is available for cash and check-only businesses. Loan amounts range from $10,000 to $500,000, with rates between 6% and 28%+. Fixed payments are either drawn from bank accounts or based on a percentage of credit card sales. To qualify, businesses must provide:
- The last six months of bank statements.
- A copy of a driver’s license for each principal.
- A copy of a lease or mortgage payment.
- A current business license.
Merchant Cash Advances
Benefits of Merchant Cash Advances
Merchant cash advances provide business owners with instant access to funds, often without a credit check, making them an ideal option regardless of credit rating. Unlike traditional loans, merchant cash advances:
- Do not require collateral or security.
- Have no personal guarantees.
- Do not restrict how funds are used.
- Do not impact the ability to qualify for other financing.
- Offer quick access to funds without fixed payments, coupons, or checks.
By leveraging alternative funding sources such as merchant cash advances, unsecured lines of credit, and business loans, small and medium-sized businesses can maintain financial stability and support their growth without traditional banking constraints.
