Finding an unsecured line of credit can be somewhat difficult for most small businesses, because there’s a considerable amount of risk to any lender which would provide an unsecured line of credit. Since there is no collateral at all involved with an unsecured line of credit, it puts the lender at considerable risk, if the borrower were to default on the credit line. That being the case, it’s much more difficult to obtain an unsecured line of credit for business, than it would be to obtain a secured line of credit, which is backed by some form of collateral.
Best time for finding an unsecured line of credit
Given the fact that a lender is assuming most of the risk involved in an unsecured line of credit, it will be necessary for any business owner applying for one of these to minimize the risk as much as possible. That means a business must have been in operation for several years already, and must have shown strong profitability during those years.
It will also be necessary for any prior business credit history to be very positive in nature, and the business owner must also have demonstrated strong personal credit history. When these three major factors are all considered to be strongly positive, it demonstrates to the potential lender a high degree of business acumen and responsibility on the part of the owner. By contrast, any business which has only been operating for a short period of time would probably not be approved for an unsecured line of credit, nor would an owner with poor credit history be likely to be approved.
Unsecured lines of credit with Blackwater Capital Funding
If your company is one with a strong credit history and you’ve been profitable for several years, you may be eligible for an unsecured line of credit with us. Contact Blackwater Capital Funding today to inquire about unsecured lines of credit, or about other ways we may be of financial assistance to your small business.