Is your small business startup all set to launch this summer? If so, now is the time to prepare. If your small business startup is a seasonal business that generates the majority of its revenue during the summer (or if it’s just a brand new business) and you need outside funding to cover some of your operating expenses, we may be able to help. Here at Lencred we specialize in helping small business startups in a variety of different industries obtain the operating and working capital needed to grow their businesses. Although we offer several funding options to small business startups, we primarily recommend that startup business owners take advantage of unsecured business lines of credit if they qualify.
What is an unsecured business line of credit?
An unsecured business line of credit is considered short term financing. It’s sort of like a personal credit card or line of credit, however it is strictly for the business. The major difference between a loan and a unsecured business line of credit is that loans have set terms for payback (i.e. 3 or 6 years) whereas an unsecured business line of credit has revolving terms. Therefore, once a loan is paid off, you have to reapply to obtain another loan. However, once you pay off the balance on an unsecured business line of credit, it starts over (i.e. the funds become available again). You can have an unsecured business line of credit for the life of your business (as long as it’s properly maintained and the lender wants to continue the relationship with you). Whereas a loan is typically a one time thing.
Why should I get an unsecured business line of credit for my small business startup?
An unsecured business line of credit is good to have because if it gives you continuous access to capital. If your business has consistent cash flow, using an unsecured business line of credit to pay expenses will help you tremendously. And if you are managing the unsecured business line of credit properly, you will always be in a good position to pay it off in a timely manner so you can continue to access the funds.
How do I get an unsecured business lines of credit for my small business startup?
If you ready to get an unsecured business line of credit for your small business startup, LenCred can help. The first step is to contact us here. After receiving your information, one of our helpful Advisors will contact you to discuss the next steps.