What Unsecured Business Finance Is
Unsecured Business Finance is a FICO driven program for credit worthy applicants. With Unsecured Business Finance, there is no collateral needed. However, a good credit score is required in order to qualify. In comparison to secured loans, Unsecured loans are a higher risk for lenders– which means higher interest rates and required credit scores. Applicants are able to choose one guarantor of their choosing if their credit is not high enough.
Types of Unsecured Business Financing And Which Ones Are Best For You
For Entrepreneurs like you, there are a few types of Unsecured Business Financing Options. The main two are business credit cards and bank lines of credit. To help you out, we’ll explain what each of them does.
Bank Lines Of Credit:
Bank lines of credit are incredibly flexible when it comes to revolving credit. You can request a specific amount of money, but don’t have to use all of the available limit. In essence, you only take out what you need and pay interest on only what has been used and not the entire line of credit. Repayment periods are also flexible and allow you change the amounts you pay back monthly. Bank lines of credit can give upwards of $50,000 – $250,000.
Business Credit Cards:
The application process for business credit cards is similar to that of a standard credit card. Business credit card applications are typically much easier than other business loans. The business credit cards themselves can be used for a wide variety of purchases and are a good way to keep business and personal credit separate. However, with all of the benefits, this means business credit cards often have higher interest rates than other loans. Business credit cards can give upwards of $25,000 – $150,000.
Do You Qualify For A Business Credit Card Or A Line Of Credit?
In order to qualify for a business credit card or business line of credit, you must provide your business’s contact information, the legal name of it, the industry it’s in, the type of business it is, total annual income, your Federal Tax ID, your legal name, and contact information.
Ideal Annual Revenue
Ideal Credit Score
600 – 800
Time In Business
No Time in Business Required
How To Apply / Documents Needed
Most banks, both local and large, offer entrepreneurs business credit cards and bank lines of credit. However, alternative financial institutions also can help you get unsecured business financing. The process itself is relatively easy and doesn’t take too long in order to be processed and approved.
Required Documents: Business Credit Card
Required Documents: Bank Lines Of Credit
Business Tax Returns
Business Cash Flow
Personal Credit history
State / Location Of Business / Officers
Finance Factory Helps You Find The Best Unsecured Business Financing For Your Business
Interested in finding funding for your business? Finance Factory would love to help! If you’re looking to fund your business within the next 30 to 90 days and have a credit score of 600 – 800, let’s chat! Get pre-qualified right now with our quick-step pre-qualification form! And don’t worry, this will not result in a hard credit inquiry of sensitive information. We just want to learn more about you and your business. Click below to get started!