Alternatives to Unsecured Business Lines of Credit

Last Updated May 06 2008 11:30:16.

If your personal credit is “challenged” and you need to borrow cash for your business, you may want to consider some alternatives to applying for an unsecured business credit line.

When most business owners need financing in their business, they look to banks for an unsecured line of credit. This however is one of the most difficult types of financing available. The banks require in most cases a minimum of one year in business, a personal FICO score greater than 680, and available revolving credit of 70% or greater. In speaking with bank loan officers we work with, more than 90% of the applications they receive for this type of loan are declined.

There are many other types of loans available to business owners that should be looked at when you need capital. Here are two basic types:

Equipment Sale Lease Back

If you have any equipment of value greater than $10,000 you can sell the equipment for cash and then lease it back. This gives you the cash you need now and you only need to make payments on the equipment as you would if you leased it. Requirements for this type of loan are focused on the type and value of the equipment.

This type of financing is available for businesses with equipment that they own completely. A finance company will buy the equipment from you just below fair market value of the equipment. That way you get cash, and you keep the equipment. You will only need to lease the equipment from the finance company and make monthly payments. In most cases the requirements for this type of financing are limited.

Merchant Account Cash Advance

If you accept VISA/Mastercard at your place of business for at least 6 months, you can get a cash advance based on your monthly volume of charges. This type of loan does not typically require that you have great credit, just no bankruptcy in the last 3 years.

If you are interested in either of these types of loans you can contact our loan department at 866.254.6099 ext. 109 or please visit our website:

http://www.loanforyourbusiness.com

Source: David Gass, President & CEO, Business Credit Services, Inc. Business Credit Services, Inc. specializes in helping businesses build business credit and establish an excellent corporate credit history. Download their free booklet How to Build Business Credit at http://corporatecredit.biz

Original Article: Alternatives to Unsecured Business Lines of Credit published at http://corporatecredit.biz

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