What are “Unsecured Business Credit Lines”?
Unsecured business credit lines is a program that requires no history of business cash flow. The product leverages very good 700 type personal credit and the high credit limits on the revolving credit cards that are reporting.
Ex: A client has $50,000 in high credit limits and very good personal credit, we can get them about $50,000 – $60,000 in “TRUE”
business credit lines that only report to D&B, Experian business, and Equifax business.
How does it work?
We analyze the personal credit, industry type, and other factors to maximize credit limits. We have access to 40-60 banks in each region of the country and we know every guideline and piece of fine print involved with being approved through these institutions. It’s imperative to know which issuing banks are more favorable to certain industries. We handle all processing and the application process so the client can focus on day to day operations. We will negotiate credit lines to maximize funding.
These credit lines are issued at 0% interest for the first 6-18 months, typically we see an average of 12 months. These credit lines will start the process of separating your personal life from your business as they only report to the 3 major BUSINESS credit bureaus and not the personal credit bureaus.
How long does it take?
The process from start to fund is about 3-4 weeks.
Who does this make sense for?
It makes sense for any business owner who lacks business credit or a new business who can’t get working capital because they have no history of cash flow. Business credit is very important when underwriting any business loan so getting a quick start with establishing a score can put you in a very favorable situation when approaching larger loans, getting terms on vendor credit, and just proving the overall stability of the business on paper.
How do I know if I qualify?
A 3 bureau personal credit report is all that is needed to pre-qualify for this product. The entire process is very light documentation as there are no financials or projections needed.
– Need 700 type credit.
– Limited inquiries required, would like no more than 4 but can approve with as many as 6 within 6 months.
– No judgments, collections, tax liens, bankruptcy, or other adverse credit showing.
– Each specific credit card must have a balance of no more than 50% of the high credit limit, the lower the usage percentage the better the approvals will be.
– A Solid 10-year depth of credit history with current and previous trade lines for a mortgage, installment loans, and revolving credit cards.