Monthly Archives: July 2016

Seven Business Credit FAQs

1. What can you use Unsecured Business Credit Lines For?
Unsecured credit lines can be used for anything, but are effectively used to overcome short term capital requirements, which I define as a 0-18 month payback period. Marketing campaigns, aggressive expansion, flipping real estate, and holding multifamily properties are the most common uses of unsecured business credit lines. You can use it effectively for buying cashflowing rental properties and doing flips as well.

2. Do I need to provide any personal or business income verification?
That depends. There are programs available to benefit both startup businesses and established profitable businesses. If your business cannot presently show income, don’t worry for there are stated income products available to quickly grow your business into a profitable powerhouse. In contrast, if your business has already experienced growth and profit, there are full doc products totaling over $250,000, allowing your business to leverage unsecured funds to continue expansion. Apply for stated income products and received up to $100,000 or more within a year’s time for a seasoned business.

3. My business is a startup; can I still receive unsecured funding for my business?
Absolutely! There are products specifically for Start-Up companies; normally stated income products. If you’ve been in business for less than two (2) years, you may still qualify for up to $75,000 in unsecured business capital.

4. Will these business unsecured lines report to my personal credit bureaus?
Never! All business credit lines you acquire through the company I work with will not report to the personal credit bureaus (TransUnion, Experian, Equifax), unless you begin missing payments and default. You may draw on the entire balances of these lines without fear of bringing down your personal credit scores!

5. I have great credit, why shouldn’t I go to my bank to get a credit line?
There are two major reasons why certain funding programs are superior to typical banks:
(a) Many lenders report business credit lines to the personal credit bureaus. This means that when you draw on the balance of the line, your personal credit can drop anywhere from 20-100 points overnight!
(b) The company I work with has contacts with hundreds of lenders, each with unique lending trends, allowing an optimal financing mix so that you receive the most capital, with the lowest interest rate, as quickly as possible!

6. If my personal credit isn’t great, can I find a co-signer?
Yes, the company I use accepts co-signers if you have someone with better credit who wishes to personally guarantee your business lines of credit. There are experts out there who will help you take the steps so that you are able to use them to acquire capital for your business.

7. Are business credit cards Unsecured Business Lines of Credit?
Absolutely, a business credit card is one of the most common forms of unsecured business credit. It’s possible for you to draw on the lines efficiently, so that they may be used similar to a purchase or check-book line of credit, without paying outrageous cash advance fees. While credit cards are often stigmatized by the public as being associated with bad-debt, it is not bad debt if used for the purposes of generating income for your business. Actually, that’s what I call good debt. Use borrowed money to get rich and have someone (called a tenant) make those payments for you.