Alternatives to a Business Line of Credit

Business Line of Credit

Small companies typically find it highly challenging to receive an unsecured line of credit for business. In most cases, banks are the primary lending source and their tight approval standards target larger businesses. Occasionally, small businesses that are mature and have outstanding credit may be approved for unsecured credit lines. Unfortunately, these tend to be rarities.

However, there are some alternatives to unsecured credit lines, for new and unproven small businesses. First, shop for some business credit card offers. You may not be thrilled with the interest rates offered, but you can find business credit card offers that deliver the unsecured line of credit for business that you need for operations and working capital.

SBA (Small Business Administration) is another excellent option. While the SBA seldom makes direct loans, they guarantee up to 85 percent of small business bank loans every year. Once again, you will be challenged to get an unsecured loan, banks are willing to guarantee secured business loans to qualified small businesses.

With business credit card offers and secured commercial loans available, small business should find options that will work. While all small businesses would welcome unsecured lines of credit, these options are limited in the current economy. From business credit card offers and SBA secured loans, the alternatives to credit lines can help your small business achieve your goals and objectives. Do you have any better alternatives? Let us know.

There are some lenders offering business loans for borrowers with bad credit. While you can generate the cash you need to fund operations, the interest rates and terms will be a bit nasty. However, if you focus on making all payments on time, you will enjoy better terms on your next round of financing.

For more information, go to Business Line of Credit at

Alternatives to a Business Line of Credit was last modified: January 13th, 2012 by Amit Kraidman
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