You’ve heard the expression: businesses come in all shapes and sizes. The same can be said of unsecured funding options. But trying to narrow down the best fit can leave you feeling frustrated and uncertain. For the sake of clarity, let’s run some comparisons that will aid in the decision making process. One of the first questions borrowers have is what’s the difference between an unsecured credit line and an unsecured business loan? This article will answer that question and help you figure out which one is best for your business.
An unsecured line of credit is touted as an all-inclusive financial solution for struggling businesses. The problem is very few borrowers have a set plan for how to use the new-found cash flow. As a result, they don't focus on long-term benefits. Truthfully, if you want to get longevity out of unsecured funding, you need to start thinking creatively when it comes to investing your resources.
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
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.
The decision to apply for an unsecured line of credit should be weighed carefully with equal attention given to the pros and cons of managing the account. To make the wisest decision for your business, it’s best to give each argument individual attention. This article will focus on several benefits that credit lines afford a small business.
Credit to the Power of Three: the Biggest Benefits to Unsecured Financing
Lenders and borrowers alike can tell you a lot about the benefits of an unsecured line of credit, but that amount of information can be difficult to sort through. To make things easier, here are the three best things to know about unsecured financing.
Benefit one: collateral is an option, not a requirement. Whereas secured loans require asset-based backing, like property or a car, as part of the approval process; unsecured credit does not make this a requirement. As long as you show verifiable proof that you can afford to pay back the funds, approval is relatively simple. The catch comes in the loan amount and interest rate. (more…)
Any Small Business can Use a Line of Credit to Make Ends Meet
There is only one thing that small businesses’ need to continue to have cash flow and stay afloat during tough times and that is capital. For a small business, capital could be something that is in short supply.
When you first start out, your company may be faced with various expenses that will need
to be taken care of. Whether it is because of bills related to employee payroll, inventory purchases or unexpected emergency, you need to have the capital to survive any of these situations.
As a U.S. small business owner, you may be looking for ways to keep your company running during uncertain economic times, or even just a slow sales season. Maybe you’re looking to expand and you found the perfect opportunity, but a traditional bank loan or business credit line is not an option due to lack of capital or the high restrictions currently put on National and local banks. An unsecured business cash advance may be exactly what you are looking for.
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.
Regardless of the size of your business, you will encounter situations where you need an almost immediate source of funding. You can try going to a bank, but they require a couple of weeks and a large amount of documentation before they will even make a decision (and then you could still be denied). Your needs are probably more immediate, related to issues like meeting payroll, increasing your inventory, or even adding to your business space.
Nurturing Business, Cultivating Hope
