How to Obtain Unsecured Lines of Credit to Scale your Business
Obtaining an Unsecured Line of Credit to Grow your Business
As a small business owner, the time may come when you need a business line of credit to keep your company growing. However, what do you do if you haven’t been in business long enough to establish a good enough business credit rating in order for the bank to give you a line of credit? Building excellent business credit takes time, and, if you don’t have it, obtaining funding is more difficult. Fortunately, unsecured lines of credit are available from alternative lenders. Having received your unsecured line of credit, you can then start building up your business credit score.
How Do I Start to Get Business Credit?
You are probably aware that you have a personal credit rating but may not have given much thought to business credit. Your first step in building credit is to register your business with business credit agencies. It’s free to register with Dun & Bradstreet, Equifax, and Experian. If you engage in sound financial business practices, your business credit will increase over time and make getting future funding much easier.
How to Apply for an Unsecured Line of Credit
Develop a written business plan. The plan should describe what your business does and why you are looking for an unsecured line of credit. This step may not be necessary, but having a written plan may impress a potential lender with your high level of business professionalism. Note that having an exemplary personal credit rating will also help as it demonstrates your ability to pay bills on time and work within a budget.
Find the Right Lender
Obtaining a business line of credit from a traditional lending institution such as a bank may be difficult if you have little in the way of collateral to offer as security. However, an unsecured line of credit is available to you through a reputable alternative lender such as Artos Capital. Let Artos Capital review your company’s finances to see if you qualify for an unsecured line of credit.