Certain businesses function under the economic parachute of being “recession proof.” Meaning, no matter what the future holds, these businesses can count on job security because they provide a service that is always in-demand. Don’t let the distinction or supposed security fool you. Sometimes even the “recession proof” among us need a little capital infusion. (more…)
The fact of the matter is lending is down. The reasons behind that fact prove far more interesting. Yes, it has to do with the state of the current economy, but only partially. The bigger road block to professional financing are the professionals themselves. This is a topic business owners don’t like to talk about. That being said, this article will broach the uncomfortable subject of how past mistakes affect future lending potential.
The Greener You are the Harder You Fall
You’ve secured the backing to open your doors, your business is creating buzz, and those revenue-gaining activities (RGA’s) can’t be far behind. All in all, the future looks bright. That is until it’s time to take things to the next level. (more…)
Debt is a common reality in America’s economic culture and the professional landscape is no different. Everyone has the next quick-fix idea to eliminate it. But is there an effective solution that will allow business owners to re-pay their unsecured credit line quickly? It turns out; the simplest explanation is probably the right one.
When looking for the best defense against debt; consider the strategic snowball fight
In business financing, an unsecured credit line is a flexible resource that meets the short-term financial needs of a growing business. You do not have to insure the loaned funds using collateral or assets. Instead, a fixed annual fee is charged when you access the money; the rate varies by credit line. Some lenders even waive the annual fee for the first year. However, there are pros and cons to be aware of when opening an unsecured credit line.
The Advantages
With an unsecured credit line, there are no access restrictions. You can borrow the money as needed and pay it off at you convenience. Access it anytime simply by writing a check.
It is as easy as using a credit card without the recurring interest hassles. As long as you pay the balance due, the money will be there when you need it. This is an advantage over other unsecured loans because the credit line can be used repeatedly without having to re-apply for funds. The interest rate depends on the lender, but as a rule, it’s significantly lower than a credit card. Typically, it will not exceed 6% above prime.
An unsecured line of credit is a viable financing option for businesses in need. There are always two sides to a coin; especially when it’s borrowed. As long as you don’t get in over your head, a credit line may be the solution you’ve been looking for. This article will outline why you should investigate this financial option and how to avoid habitual debt.
The top 5 Reasons to investigate an Unsecured Line of Credit
There are appropriate reasons to examine unsecured funding options. It all depends on how you use them. We’ll take a detailed look at each scenario.
The Life Cycle of a Business
The first two reasons to seek out an unsecured line of credit have everything to do with what phase of business ownership you are in. The two most common roads to unsecured lending are start-up costs and the need for short-term revenue.
Small businesses are the backbone of American commerce. From convenience stores to small retail outlets, these businesses offer true convenience for customers across the nation. Still, there are several small businesses that cannot compete as easily in this challenging and diverse market.
Nurturing Business, Cultivating Hope
