What are the differences between an Unsecured Business Line of Credit and an Unsecured Personal Line of Credit?  If you struggle to answer that question then Business Loan Partners can help.  Often the same lender will offer both Personal and Business Lines of Credit and while both products can provide you the funding you desire there are key differences that can have a major impact on your ability to get future funding.

One key difference is that some (not all) business lines of credit don’t report on your personal credit report.  This is very helpful since any interest expense has already been reported on your business Income Statement and if it’s also reported on your personal credit report you are double counting the expense which could lead to future loan denials.  Especially for new businesses that are more likely to have both future credit needs and relatively lower income double reporting this expense item can be especially detrimental.

An additional difference is a business line of credit will report to your business credit report.  For many newer businesses this lesser known business credit report doesn’t have much activity and a lack of credit history can also negatively impact your ability to get business credit.

Benefits of Unsecured Business Lines of Credit

As the name suggests the biggest benefit is that these lines do not require collateral.  They are also well suited for start-up companies with no established revenue as long as the business owner has good personal credit.  A start-up business owner with good credit can often get approved for $25,000 to $50,000 before their company reaches profitability.  These lines often have low introductory rates sometimes at 0% for 6 – 18 months.

For established businesses with revenues of $1,000,000 to $10,000,000 we are often seeing approvals between $100,000 to $500,000 unsecured providing the business has good financials and credit.

Role of Business Loan Partners

Business Loan Partners has streamlined the process to quickly identify which products best meet your businesses needs and to suggest ways to improve your credit if you do not currently qualify for this product.  Then we suggest not only the lender(s) you should apply with but we also the order to place these applications because the amount of credit you have and number of recent credit inquiries can impact your ability to receive funds.

Many reputable competitors of ours offer this service charging fees of 10% to 15% of the total amount of credit obtained (the unreputable competitors have fees of 20% or more).  Those competitors offer a great service but it’s expensive, Business Loan Partners can provide an initial individualized consultation followed up by additional guidance as requested for 1/10th or less the fee our competitors charge.  Then if that isn’t good enough we can find lenders who will pay our fee on your behalf.