How You Can Benefit From An Unsecured Business Lines of Credit
Have you been hearing about Unsecured Lines of Credit for your business and are curious as to what they are and how they can benefit you? Below we will cover 8 different benefits Unsecured Lines of Credit offer to real estate investors and small and large business alike.
#1 Access to Cash on Demand. Whether you find yourself in a cash flow crunch, want to expand or was presented with an incredible business opportunity Unsecured Lines of Credit for businesses gives you access to cash on demand for any use.
Unlike a traditional loan, a revolving credit line enables you to source funding before your business actually needs it. Because of the cyclical nature of business, you may find yourself wanting to borrow money to take care of your company’s short terms needs. By being able to access funds on the credit line at any time you can keep your business running smoothly, day in and day out.
What could you do if you had access to 5-6 figures of cash available at your fingertips?
#2 Low and Flexible Payment Terms. Unlike small business or term loans, Revolving Lines of Credit offer low monthly payments. And you only pay on what you use at any given time. Many times the minimum payments due are only 1-2% of the line of credit that was actually used. The grace period is also much longer than a small business loan’s.
That means if you have a line for $50k, and you only use $5k of it.
your minimum payment would only be $50-$100.
How does it get any better than that?
#3 It Builds Your Business Credit. There are still a large number of businesses who don’t know that their business has a credit profile. Business Credit is a crucial aspect to owning and operating a successful business as it opens up many different funding options without any individual signing as a personal guarantor. Having a Revolving Line of Credit for your business greatly enhances your businesses’ creditworthiness and fundability, opening up a greater number of doors for funding in your future.
What can business credit be used for:
- Purchase of a new car with only the business’ EIN # (no PG or social security #’s)
- Business gas and retail cards with no PG (personal guarantor). i.e.: Shell Gas, Office Depot, Home Depot, Amazon etc.
- Corporate Housing. Your leases can be completely under the business name and EIN.
- An Apple, Dell or other computer, software and other business related expenses100% in the business name.
- A long list of other Business-Only Credit options.
How much more ease could you have in your business with a strong business credit profile?
#4 The Separation of Personal and Business. It can be easy to co-mingle the two. With a revolving business line of credit, your line can receive higher limits over time, never affecting your personal
#5 Utilization. So you know with personal credit, you never want to use more than 30% of your credit lines? Well in business you can utilize 95% without it affecting your credit score and fundability. Plus, they have longer grace periods.
Talk about having a line that you can actually use without penalty!
#6 It’s Revolving. Because it’s not a loan, you have access to these lines (with the opportunity to expand them with history) for as long as you keep them open. And, because it’s not a loan, you have the unrestricted ability to use the capital for whatever you choose!
What peace of mind could you have knowing you have $50k, $100k+ at your command for the life of your business ?
#7 Proper Planning means no opportunity will ever pass you by. Have you ever had an amazing opportunity presented to you, but you were not in a cash flow position to take advantage? Business Lines of Credit prevent you from ever having to say no when hat short window opens.
Proper planning positions you to win. Setting up your Lines of Credit LONG BEFORE you actually need them = wisdom. Having access to LOC’s has literally saved 1,000’s of business owners from a cash flow crisis and timeline related funding issues.
#8 You receive your funding fast. Typically once your application is received you receive funding within 14 days with total ease.
#9 It’s the cheapest $$ out there. No matter where you go to receive funding, there is a cost of funds. Unsecured Lines of Credit are the cheapest and most flexible for any business. Your cost of funds upon receiving your 1st round of funding is about 3-8% cheaper than any other form of funding. And most of our clients receive an introductory offer of 0% Interest Rate for 12 months.
What happens after that? Well working with us, we advise you on how you can continue to have a 0% interest rate even after the introductory period.
If this is all new to you. It’s ok, it was to us once as well. It took some time to integrate and understand it, and once we did we never looked back. We have since fallen completely in love with corporate credit and lines of credit as it has transformed not only our life and business, but also the life and businesses of 1,000’s of others across the United States.
We are more than a Financial Firm, we are advisors. We work with our clients to help them secure immediate capital, as well as structure a long term strategy for continued growth. This form is but one of about 3 dozen types of funding we offer. Click here to view other forms. Most of our clients access additional forms of funding, but nearly all of have Lines of Credit due to the revolving line access, unrestricted usage and low cost of funds.
If you’d like to learn more about opening up Lines of Credit for your business and/or building business credit, please reach out! We love helping other business owners position themselves for ongoing success.