An Unsecured Line of Credit is the best Choice in

 Small Business Funding, Small Business Financing

When it comes to small business funding, there is no shortage of potential solutions to meeting your small business financing needs.  The choice of which type to utilize is yours.

Here’s a brief discussion of some of the major types, including a few notes on how we have found them to compare with unsecured loans.  We can help with the details – including which solutions may be best for you, and with helping you secure the approval you need.  Guaranteed.

Unsecured Loans for Small Business Funding

Unsecured small business loans are defined as borrowing funds with no pledged collateral.  In essence, you’re being rewarded for your years of being a good credit risk.  As such, the bank or lender bases the approval of your application on such factors as your credit score, time in business, and internal formulas.  The better these factors, the more you may be able to borrow and the better your terms. However, if you choose an Unsecured Line of Credit, You will only pay interest on the funds that you use, so may be an even better choice. See Unsecured Line of Credit below.  Click here to learn more about Unsecured Loans for Small Business.

Invoice Factoring

An unsecured line of Credit is a line that is not backed by collateral. Also known as a signature line or Unsecured Business line.

Invoice factoring involves selling your invoices at a discount to raise short term small business funding.  One major downside, compared to unsecured loans, is the “discount” or loss of income you incur.  A potential problem occurs if this discount, for instance 25%, exceeds your own markup on your product or service.  If that markup is 10%, for instance, you’ve incurred a loss of 15% overnight.

Securing Accounts Receivable

Pledging or securing accounts receivables to obtain small business financing is neither a simple nor fool-proof option.  There are a variety of concerns about using AR as collateral for small business financing versus, say, the use of unsecured loans.  To start, not all accounts receivables may qualify. 

A larger issue may be that this particular type of small business funding could potentially raise concerns about your own business viability among your customers.  In reviewing your accounts receivable for use as collateral, lenders will likely want to pass judgment on the credit worthiness of your customers.  If a lender calls key customers to verify your receivables terms and condition, or request your customers’ credit reports, it could raise concerns among your customers.  And, given that word often travels fast, such “news” could prove counterproductive for your business.

Unsecured Line of Credit

Lines of credit, especially an unsecured line of credit, is a flexible solution for expanding businesses – offering the benefits of unsecured loans, yet requiring interest only on the money actually used.  Click here to learn more about obtaining a Line of Credit for Business.

Merchant Credit Card Factoring

Mainly a retail type of financing, merchant credit card factoring enables a business to borrow funds against its future customer credit card charges.  The loan is repaid by splitting future credit card “swipes” or charges with the lender.  Between the combination of lender interest rates costs and processing fees, merchant credit card factoring can be an expensive option to obtain small business funding.

Commercial Lending

Simply put, commercial lending is a large commercial real estate loan.  Most commercial loans start at $250,000 minimum – often a higher level than needed (or given the real estate required as collateral, obtainable) for most small businesses and home businesses.  In most cases, for small business financing, unsecured loans may be a better choice.

Working Capital Loan

Working capital loans or lines of credit can often help both small businesses and home businesses over a quick short-term need for cash.  Often used to fund immediate operating or payroll expenses, the financing provides a respite until cash inflow catches up with outflow.

Consult with AFS About Small Business Funding and Unsecured Loans

With no upfront fees, and a 100% Approval Guarantee, Accommodative Financial Solutions is the best loan consulting company to help you obtain unsecured loans or other small business funding, loans, or financing for small businesses and home businesses.

Unsecured loans from $10,000 to $150,000 are a specialty at AFS.  Generally, with your good credit, all that’s needed is a quick five minute application with no required collateral, and based only on your stated income and with no documents required.  Approval may be yours within 24 to 48 hours. AFter all is read and you still don't believe that you would qualify for your business loan, then try our personal loans package.

In Summary, both an Unsecured Loan and an

Unsecured Line of Credit will get you the needed

funds at the best interest rates. The choice is yours!