Perhaps in the past, you may have heard someone say "borrow money when you don't need it." However, very few people take this advice to heart, especially when it comes to business owners. The bottom line on getting a business loan has little to do with how long you’ve been a customer of a financial institution or how nicely you smile. When a finance company evaluates a loan application or line of credit request, the only thing they are interested in is whether you’ll be able to repay the loan and make the payments on time. This goes for just about every finance company in existence (at least those who plan on staying in business).
If you’re already having a tough time paying your bills when you try to get a loan, you may look like a bad credit risk. The lending institution may worry that even with the loan, you won’t be able to bring in enough business and cash quickly enough to pay back the loan on time. Also, if you’ve never borrowed for your business, there won’t be any business credit history to give lenders any confidence in your likeliness of repaying the loan.
This is where our unsecured line of credit program comes in: You can borrow when you don’t need it and repay the loan, to establish a business credit history for your company. Then, borrow a little more money and pay it back. Then you can ask for a slightly bigger line of credit. Your goal: to get to the point where you’ll have enough credit available to carry your through temporary downturns or help you through growth spurts. Many business owners simply wait until things get ugly and that's never a good thing!
An unsecured line of credit can provide much needed liquidity when things get tough - and if they don't, you'll be on your way to building a solid company credit profile.