Unsecured Business Line of Credit: What Is It, and How Do I Get One?

hey I'm Joe camb CEO and founder of national business capital in this video I'm going to talk about unsecured business lines of credit what it exactly is by meaning unsecured and more importantly how you can get [Music] one all right so thank thanks for tuning in so um unsecured business lines of credit um you know it's a little confusing and and people ask me all the time what's secured what's unsecured so typically most banks um and lenders um will do a secured line of credit and you can get a line of credit through uh real estate like securing it against your real estate or if you have B2B receivables in your business um and sometimes even inventory you can secure it against all those things but if you're a business which a lot of businesses today they don't have B2B receivables or they do progress billing like a lot of contractors so that's a challenge or you don't have inventory or you don't own real estate then basically you have to look at an unsecured business line of credit option and a lot of business owners don't understand this so basically if you don't have the real estate if you don't have the B2B receivables you don't have the inventory the only option really is to leverage your cash flow and that's what an secured business line of credit is basically lenders will look at really what you're doing in Revenue they'll look at how you're managing your cash flow and then from there they'll make up an approval that they feel comfortable with versus your sales and versus your cash flow most lenders that will do unsecured line of credits will need to have at least a 600 FICO score usually be in business for one to uh two years and what's going to be really important is um a lot of these lenders are going to look at your bank statements and they're going to look at how your cash flow fluctuates so it's very important as a business owner and I understand this is easier said than done it's very important that you're managing the money in your bank account that you're not going negative because the more money you're keeping consistent in your bank account and the greater amount of money that you're keeping in your bank account the higher your approval can be um with an unsecured business line of credit so lenders will look at a combination of what you're doing in your recent sales over the 6 to 12 months in your business along with how you're managing your money in your business there's a number of lenders out there that offer this there's probably three to six um unsecured business line of credit lenders that are really good that offer a very competitive rates and then there's some other lenders that say they offer this but they really don't so you got to be careful with that it's very important that you get to the right lender depending on the size of your business your revenue and your cash flow will all make up the right lender that you need to go for some lenders do only a 50k unsecured line of credit but some will go up to the million so it's very important that you get to that right lender I know this all may sound a little confusing and you might be saying hey which lender do I go to well that's exactly why I started my company National Business Capital where're a business lending platform we have all those lenders right in one place so we can do a mini evaluation for you and a pre- underwrite and pretty much be pretty accurate in telling you which lender is going to approve you and then we'll manage that whole process from application all the way to funding so we take all the guessing out for you another really cool thing and what's important too with an unsecured line of credit they're typically structured over a 12 or 24mth term and then they reset so you usually you need to do some sort of a um update and and uh new underwrite but what's great is you only pay for the money that you use so you pay it back down and um you that money is a available again so it's truly revolving so you can you know use money to go buy inventory or buy something sell it get the money back paid down the line of credit and you're only paying for that money um while it is um um out there so while it's unpaid so that's really the great uh benefits of using an unsecured line of credit so again if you don't have real estate you don't have B2B receivables you don't have inventory an unsecured line of credit is probably what is going to make sense for you yeah so get connected with my team uh they can walk you through the whole process EXP exp what docs you're going to need and they'll work with you from application all the way through to funding typically it takes anywhere from as quickly as one uh to five days to get you an unsecured line of credit all right thank you for tuning to grow by Joe I hope you use an unsecured line of credit to grow your business out of the park thanks for tuning in take care and we'll see you soon

Channel: Grow By Joe

Views: 685

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Id: JRTEIANRH5w

Length: 4min 58sec (298 seconds)

Published: Thu Feb 15 2024