Going out and getting a line of credit makes sense when you start to grow your business. There are a lot of options available out there, but one of the most popular is to get an unsecured business line of credit.
Unsecured credit lines allow you the freedom to plan ahead and ease cash flow situations that can arise from time to time within your business.
Here are some tips on what to avoid when you go to open an unsecured line of credit:
The paperwork crunch: Like a lot of firms, AFN publishes its minimum standards for people who are expecting to get a line of credit. The key thing to avoid, therefore, is not meeting those standards- or having the paperwork that allows you to show that you meet that standards before you apply. On the other hand, if you are uncertain whether you are qualified based on the minimums that are set, be sure to contact them to discuss it because they may have a different program that qualifies you.
Too low of a credit score: Your business credit score is normally established by the frequency and timeliness of the payments that you make to your vendors and employees. If there are no lapses and you have some history, you will likely have no problem qualifying. If you don’t know your credit score, you can easily access it online. One of the important things that you will need is to establish a Dun and Bradstreet number so that they can track your history for you. If it works out that your score is lower than what AFN advertises as a minimum, then feel free to contact them and ask whether or not programs will be available for you.
A low number of checks: Some accounts that companies open for you do not allow you the freedom to do what you need to with your money. AFN lines of credit provide you with up to 5 drafts over a four month period, giving you the ability to write checks when you require them.
Companies that specialize in an industry that you are not in: Generalists sometimes take heat for not specializing in a particular area. When it comes to business financing, one of the strengths of a company like AFN is that they are generalists. They do a great job of working in every industry from restaurants to construction to high-tech. The experience of their staff makes your financing seamless and easy to complete.
Application or upfront loan fees: While there are many loan programs for both normal credit level companies, there are oftentimes not so many options available for companies that end up having lower or bad credit scores that do not involve an upfront or application fee. These fees sometimes end up being in the hundreds of dollars and must be paid when the account is opened. At AFN, regardless of credit, they have plans available that will allow you to open the account and use it without having to pay any upfront fees.